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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

            Friday, July 29, 2005, Vol. 6, Issue 149

                            Headlines


A R G E N T I N A

AEROLINEAS ARGENTINAS: Pilots Stage Strike, Demand Pay Hike
AGUAS ARGENTINAS: Government Warns Company About Service Issues
CANDYA'S S.R.L.: Liquidates Assets to Pay Debts
DELTA INGENIERIA: Seeks Settlement Proposal Approval
DEMAN S.R.L.: Reports Filing Schedule Set

DISTRIJET S.A.: General Report To Be Filed Next Week
FRIGOFRUIT S.A.: General Report to be Presented in Court
GIGLIO S.A.: Trustee to Submit Individual Reports
LA EMBOTELLADORA: Settlement Meeting Scheduled for October
LOMA NEGRA/JUAN MINETTI: Government Issues Fine Over Pricing

INDIO INDUMENTARIA: Court Orders Liquidation
LANDERS S.A.: Court Declares Company Bankrupt
LASTICINT S.R.L.: Bankruptcy Proceedings Initiated
MATAFUEGOS CUENCA: Court Approves Motion to Reorganize
METALURGICA INMECA: Individual Reports Deadline Approaches

MULTIRED S.A.: Claims Validation Period Ends
PESCADOS Y MARISCOS: Trustee Prepares Individual Reports
R.Q.P. S.R.L.: Bankruptcy Started, Asset Liquidation Required


B R A Z I L

AES CORP.: To File Amended Financial Statements
BANCO BRADESCO: Creates Partnership With Leader Magazine
CELPE: CVM Authorizes Sale of $173M, 5-Yr Debt
VARIG: Fights to Recover Cash From GE Unit


C O L O M B I A

CENTRAGAS: 'BB' Rating Reflects One-Source Revenue Stream


J A M A I C A

KAISER ALUMINUM: Dispute Perpetuates Confirmation Hearing Delays


M E X I C O

CINTRA: Cuts Net Loss by 39.7% in 2Q05
CINTRA: Iberia Seeks More Info on Planned Privatization
GRUPO SIMEC: Gives Further Details on PAV Republic Acquisition
MAXCOM TELECOMUNICACIONES: Reports Improving 2Q05 Revenues
VITRO: Negotiating With Libbey on Sale of 51% of Vitrocrisa


P U E R T O   R I C O

R&G FINANCIAL: Issues Update on Financial Restatement


V E N E Z U E L A

CANTV: Revenues Up, Margins Off Slightly in 2Q05
CANTV: Supreme Court Decides on Pension Adjustments
PDVSA: Concludes 2002-2003 Strike Caused $13.25B in Losses
PDVSA: To Halt Leaded Gasoline Production Next Month
PDVSA: Unit Continues Shutdown Until Late August


     - - - - - - - - - -


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

AEROLINEAS ARGENTINAS: Pilots Stage Strike, Demand Pay Hike
-----------------------------------------------------------
Pilots at Aerolineas Argentinas launched a strike Tuesday,
paralyzing the flagship airline's operations. Pilots, who staged
a two-day strike earlier this month that stranded thousands of
vacation travelers, are demanding a 40% pay increase.

Aerolineas Argentinas says the lowest end of its pilot salary
scale is about ARS3,496 a month and the union's proposal would
elevate that wage to about ARS4,782. Aerolineas Argentinas'
controlling shareholder is Spain's Marsans group. The Argentine
government owns a 1.34% stake in the carrier.

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


AGUAS ARGENTINAS: Government Warns Company About Service Issues
---------------------------------------------------------------
Argentine President Nestor Kirchner told Aguas Argentinas SA
Wednesday that the government would take "necessary measures" if
the utility decides to abandon its service responsibilities,
reports Dow Jones Newswires. Either Aguas Argentinas "complies
with the service (of its concession agreement), or the
government will take all necessary measures," Mr. Kirchner said.

The President's comments came a day after the local unit of
French utility Suez rejected the government's latest tariff
proposal. The government's final proposal, "doesn't consider
proposals made by the company, nor does it offer alternatives,"
the utility said in a statement.

Suez had submitted a contract proposal earlier this month
seeking a 20% rate increase in January and another 15% hike in
the second half of 2006. But the government has made it clear
that it won't increase rates unless Suez drops the claim it has
filed against Argentina in the World Bank's arbitration
tribunal, the International Center for the Settlement of
Investment Disputes.

Meanwhile, Aguas Argentinas said Wednesday that it has extended
its deadline for deciding to withdraw from Argentina by 30
working days to the beginning of September.


CANDYA'S S.R.L.: Liquidates Assets to Pay Debts
-----------------------------------------------
CandyA´s S.R.L. will begin liquidating its assets following the
pronouncement of Salta's civil and commercial Court No. 2 that
the Company is bankrupt, Infobae reports. The bankruptcy ruling
places the Company under the supervision of court-appointed
trustee, Rafael Carlos Angel. The trustee will verify creditors'
proofs of claim until Aug. 29, 2005. The validated claims will
be presented in court as individual reports on Oct. 18, 2005.

Mr. Angel will also submit a general report, containing a
summary of the Company's financial status as well as relevant
events pertaining to the bankruptcy, on Nov. 30, 2005.

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

CONTACT: CandyA´s S.R.L.
         Virrey Toledo 702
         Local 73
         Ciudad de Salta (Salta)


DELTA INGENIERIA: Seeks Settlement Proposal Approval
----------------------------------------------------
Delta Ingenieria Industrial S.A.C.I. will endorse its settlement
proposal for approval by the creditors during the informative
assembly scheduled on Oct. 3, 2005, Infobae reports.

The Company successfully petitioned for reorganization after
Mendoza's civil and commercial Court No. 2 issued a resolution
opening the Company's insolvency proceedings.

The court-appointed trustee had submitted the individual and
general reports.


DEMAN S.R.L.: Reports Filing Schedule Set
-----------------------------------------
Pedro Ricardo Martinez, the trustee assigned to supervise the
liquidation of Deman S.R.L., will submit the validated
individual claims for court approval on Oct. 11, 2005. These
reports explain the basis for the accepted and rejected claims.
The trustee will also submit a general report of the case on
March 3, 2006.

Infobae reports that Court No. 2 of Mendoza's civil and
commercial tribunal handles the Company's case.

CONTACT: Mr. Pedro Ricardo Martinez, Trustee
         San Juan 1412
         Ciudad de Mendoza (Mendoza)


DISTRIJET S.A.: General Report To Be Filed Next Week
----------------------------------------------------
The submission of the general report on the Distrijet S.A.
bankruptcy will be on Monday, Aug. 1, 2005. Ms. Beatriz del
Carmen Muruaga, the trustee selected by Buenos Aires' civil and
commercial Court No. 16, is tasked to prepare this report which
will contain a summary of the Company's financial status as well
as relevant events on the bankruptcy.

The bankruptcy process will end with the sale of the Company's
assets to repay its creditor.

CONTACT: Distrijet S.A.
         Avda Cordoba 5062
         Buenos Aires

         Mr. Beatriz del Carmen Muruaga, Trustee
         Aguero 1290
         Buenos Aires


FRIGOFRUIT S.A.: General Report to be Presented in Court
--------------------------------------------------------
Mr. Gustavo D. Micciullo is required by the court to submit a
general report on the reorganization of Frigofruit S.A. This
report will be presented in court on Monday, August 1, 2005.

Frigofruit S.A. began reorganization following the approval
of its petition by Court No. 7 of Buenos Aires' civil and
commercial tribunal. Mr. Micciullo was appointed by the court to
oversee the reorganization proceedings as the court-appointed
trustee.

The Informative Assembly, the final stage of a reorganization
where the settlement proposal is presented to the Company's
creditors for approval, is scheduled on December 21.

CONTACT: Frigofruit S.A.
         Avda San Martin 5830
         Buenos Aires

         Mr. Gustavo D. Micciullo, Trustee
         Avda Cordoba 1417
         Buenos Aires


GIGLIO S.A.: Trustee to Submit Individual Reports
-------------------------------------------------
Court-appointed trustee for the Giglio S.A. insolvency case
Hector Raul Maestra will submit individual reports on Sep. 1,
2005, reports Infobae. These reports are based on the
authenticated claims of creditors against the Company. The
authentication ended on July 5, 2005.

After the individual reports, Mr. Maestra will present in court
a general report on Oct. 28, 2005, essentially auditing the
Company's accounting and business records as well as summarizing
important events pertaining to the reorganization.

An Informative Assembly, the final stage of a reorganization
where the settlement proposal is presented to the Company's
creditors for approval, is scheduled on May 23, 2006.

Giglio S.A. began reorganization after Court No. 1 of San
Rafael's civil and commercial tribunal approved its "concurso"
motion.

CONTACT: Giglio S.A.
         Avda Mitre 80
         San Rafael (Mendoza)

         Mr. Hector Raul Maestra, Trustee
         Chile 259
         San Rafael (Mendoza)


LA EMBOTELLADORA: Settlement Meeting Scheduled for October
----------------------------------------------------------
An informational meeting for the La Embotelladora del Norte S.A.
insolvency case is scheduled on Oct. 11, 2005, reports Infobae.
During the assembly, the creditors will vote on the completed
settlement proposal presented by the Company. This culminates
the reorganization case.

Mendoza's civil and commercial Court No. 2 issued a resolution
opening the reorganization of La Embotelladora del Norte S.A.


LOMA NEGRA/JUAN MINETTI: Government Issues Fine Over Pricing
------------------------------------------------------------
Loma Negra and Juan Minetti are two of the four cement companies
that were slapped with a total fine of ARS310 million (US$108
million) by the government for having formed a price cartel.
Business News Americas reports that Argentine minister of
economy Roberto Lavagna assigned Loma Negra and Minetti fines of
ARS167 million and ARS100 million, respectively.

The other two companies, Cemento Avellaneda and Petroquimica
Comodoro Rivadavia were assigned with fines of ARS34.6 million
and ARS7.3 million, respectively. The fines are in proportion to
each firm's market share.

"In a modern capitalist economy, it makes no sense to control
prices, but in a social capitalist economy, like this, the state
must use all the tools it can to protect consumers," Mr. Lavagna
was quoted as saying.

After a decade-long investigation into how prices were set in
the sector, it was found that the four companies had
collaborated and would thus be fined.

The companies plan to appeal the measure and as a result they
will not have to pay anything within the next year and a half,
given the number of legal and administrative steps that will be
taken.

Controlled by Swiss cement giant Holcim, Juan Minetti is the
country's second largest cement company next to Loma Negra.
Construcoes e Comercio Camargo Correa SA, Brazil's fourth-
biggest cement producer is awaiting approval from Argentine
regulators to acquire Loma Negra.

CONTACT:  Juan Minetti SA
          87 Ituzaingo
          Cordoba
          Argentina  5000
          Phone: +54 51 26 7529
          Fax:  +54 51 24 4709
          Home Page: http://www.juanminetti.com.ar
          Contacts:
          Dr. Manuel Augusto J. Baltazar Ferrer, Chairman
          Atty. Carlos Buhler, Executive Vice Chairman & General
                                     Manager


INDIO INDUMENTARIA: Court Orders Liquidation
--------------------------------------------
Ville Mercedes' civil and commercial Court No.3 declared Indio
Indumentaria Industrial del Oeste S.A. "Quiebra". The
declaration effectively prohibits the company from administering
its assets, control of which will be transferred to a court-
appointed trustee.

Infobae reveals that the court assigned the city's accountant
Gabriel Marcelo Lapezzata as trustee.

Mr. Lapezzata will verify creditors' claims and will prepare the
individual and general reports.

CONTACT: Indio Indumentaria Industrial del Oeste S.A.
         Ruta Nacional NA 7
         Interseccion con Ruta Provincial NA 14
         Justo Daract (San Luis)

         Mr. Gabriel Marcelo Lapezzata, Trustee
         Urquiza 8
         Villa Mercedes (San Luis)


LANDERS S.A.: Court Declares Company Bankrupt
---------------------------------------------
Court No. 5 of Buenos Aires' civil and commercial tribunal
declared local company Landers S.A. "Quiebra", relates La
Nacion. The court approved the bankruptcy petition filed by
Lorenzo Fermín Cuirilo, whom the Company has debts amounting to
$8,770.

The Company will undergo the bankruptcy process with Maria
Susana Polistina as trustee. Creditors are required to present
proof of their claims to Ms. Polistina for verification before
Sep. 27, 2005. Creditors who fail to submit the required
documents by the said date will not qualify for any post-
liquidation distributions.

Clerk No. 10 assists the court on the case.

CONTACT: Landers S.A.
         Cobo 1076
         Buenos Aires

         Maria Susana Polistina
         Corrientes 745
         Buenos Aires


LASTICINT S.R.L.: Bankruptcy Proceedings Initiated
--------------------------------------------------
Court No. 1 of Buenos Aires' civil and commercial tribunal
declared local company Lasticint S.R.L. bankrupt, relates La
Nacion. The Company acknowledged liabilities of $14,491 on its
court filing.

Lasticint S.R.L. will undergo the bankruptcy process with Sandra
D´Ambrosio as trustee. Creditors are required to present their
proofs of claims to the trustee for verification before Sep. 14,
2005. Creditors who fail to have their claims authenticated by
the said date will be disqualified from the payments that will
be made after the Company's assets are liquidated at the end of
the bankruptcy process.

Clerk No. 1 assists the court on the case.

CONTACT: Lasticint S.R.L.
         Sucre 2829
         Buenos Aires

         Ms. Sandra D´Ambrosio, Trustee
         Suipacha 211
         Buenos Aires


MATAFUEGOS CUENCA: Court Approves Motion to Reorganize
------------------------------------------------------
Court No. 1 of Buenos Aires' civil and commercial tribunal
approved a petition for reorganization filed by Matafuegos
Cuenca S.A., according to a report from Argentine daily La
Nacion.

Trustee Sandra D´Ambrosio will verify claims from the Company's
creditors until Sep. 29, 2005. After verification period, the
trustee will submit the individual and general reports in court.
Dates for submission of these reports are yet to be disclosed.

The informative assembly will be held on June 27, 2006.
Creditors will vote to ratify the completed settlement plan
during the said assembly.

The city's Clerk No. 2 assists the court on the case.

CONTACT: Matafuegos Cuenca S.A.
         Alvarez Jonte 5145
         Buenos Aires

         Ms. Sandra D´Ambrosio, Trustee
         Suipacha 211
         Buenos Aires


METALURGICA INMECA: Individual Reports Deadline Approaches
----------------------------------------------------------
The deadline for the submission of the individual reports on the
Metalurgica Inmeca S.A. bankruptcy case will be on Monday, Aug.
1, 2005. A general report from the trustee is also due on Sep.
12, 2005. The report contains the summary of the Company's
financial status as well as relevant events pertaining to the
bankruptcy.

Buenos Aires' civil and commercial Court No. 9 declared local
company Metalurgica Inmeca S.A. bankrupt and appointed the
city's accountant, Mr. Ruben Hugo Faure, as trustee.

CONTACT: Metalurgica Inmeca S.A.
         Avda Federico Lacroze 1966
         Buenos Aires

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


MULTIRED S.A.: Claims Validation Period Ends
--------------------------------------------
The verification of claims for the Multired S.A. bankruptcy will
end on MOnday, August 1, 2005. Creditors with claims
against the bankrupt company must present proof of the
liabilities to Ms. Maria Alejandra Barbieri, the court-appointed
trustee, before the said date. Court No. 13 of the city's civil
and commercial tribunal handles the company's case with the
assistance of Clerk No. 13. The bankruptcy will conclude with
the liquidation of the Company's assets.

CONTACT: Ms. Maria Alejandra Barbieri, Trustee
         Avda Cabildo 2040
         Buenos Aires


PESCADOS Y MARISCOS: Trustee Prepares Individual Reports
--------------------------------------------------------
Mr. Manuel Camilo Arias is preparing the individual reports on
the validated claims of the creditors of Pescados y Mariscos
S.A. These reports are due on Monday, Aug. 1, 2005.

Subsequently, Mr. Arias will provide the court with a general
report of the case on Sep. 12, 2005. The court has scheduled the
informative assembly on March 9, 2005.

Pescados y Mariscos S.A., a Company operating in Buenos Aires,
started its reorganization with the appointment of Mr. Manuel
Camilo Arias as trustee for the case.

Court No. 13 of the city's civil and commercial tribunal handles
this case, with the assistance of the city's Clerk No. 25.

CONTACT: Pescados y Mariscos S.A.
         Avda Rivadavia 1427
         Buenos Aires

         Mr. Manuel Camilo Arias, Trustee
         Amenabar 2529
         Buenos Aires


R.Q.P. S.R.L.: Bankruptcy Started, Asset Liquidation Required
-------------------------------------------------------------
Court No. 1 of Salta's civil and commercial tribunal declared
R.Q.P. S.R.L. "Quiebra," reports Infobae. Clerk No. 2 assists
the court on the case, which will close with the liquidation of
the Company's assets to repay creditors.

Juan Carlos Cieri Soto, who has been appointed as trustee, will
verify creditors' claims until Aug. 22, 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 Oct.
6, 2005, followed by the general report on Nov. 18, 2005.

CONTACT: R.Q.P. S.R.L.
         Apolinario Saravia 194
         Ciudad de Salta (Salta)

         Mr. Juan Carlos Cieri Soto, Trustee
         Mandarinos 384
         Tres Cerritos (Salta)



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

AES CORP.: To File Amended Financial Statements
-----------------------------------------------
AES Corporation's (NYSE:AES) announced Wednesday that it would
restate its 2002, 2003, 2004 and first quarter 2005 financial
statements as a result of the continuing evaluation of AES
deferred income tax accounting and reconciliation controls
process disclosed in the company's 2004 Form 10-K.

The adjustments requiring restatement primarily relate to the
accounting treatment for deferred taxes associated with certain
acquisitions completed prior to 2001. There are currently no
impacts of the expected restatement on the revenues, operating
expenses (other than as mentioned below) or net cash from
operating activities of the company or its subsidiaries for
these periods.

As part of the company's remediation plan associated with the
material weakness in internal control over financial reporting
related to deferred taxes, AES retained an independent
registered public accounting firm to assist the company with its
review of its controls and processes. This review will be
completed as expeditiously as possible. As previously noted,
adjustments identified primarily relate to the accounting for
deferred taxes upon original acquisition of certain foreign
subsidiaries prior to 2001. These adjustments primarily impact
deferred tax balances, fixed assets and the other comprehensive
income portion of stockholder's equity as well as income tax
expense, depreciation expense and foreign currency gains and
losses on the remeasurement of deferred taxes.

As a result of the detailed review, deferred tax adjustments for
certain subsidiaries were identified, largely stemming from:

- Purchase accounting deferred tax adjustments associated with
foreign acquisitions, including the effects of the local tax
basis generated in countries where indexing of fixed asset
deductions due to inflation is allowable for local tax purposes.

- Foreign currency remeasurement of deferred tax balances in
certain subsidiaries where the U.S. dollar is the functional
currency.

- Amounts associated with the reconciliation of income tax
returns to deferred tax balances.

In addition, accounting calculation errors were identified
related to our subsidiary in Cameroon resulting in adjustments
that primarily will impact the balance sheet fixed asset and
currency translation accounts.

Based on management's review, it believes that all errors were
inadvertent and unintentional. The company has not completed its
analysis and has not yet determined the final amount and nature
of the adjustments.

The previously issued financial statements and report of the
company's independent registered public accounting firm,
Deloitte & Touche L.L.P., should no longer be relied upon. The
company will file an amended 2004 Form 10-K and an amended first
quarter 2005 Form 10-Q reflecting the restated amounts as soon
as practicable. The decision to restate prior financial
statements was made on July 26, 2005 by the Audit Committee of
AES's Board of Directors, upon the recommendation of management
and has been discussed with Deloitte & Touche L.L.P.

The restatement is not expected to affect the company's 2005
cash flow-related financial guidance previously disclosed on
February 3, 2005, but could affect income statement elements
related to depreciation expense, foreign currency gains and
losses, and tax expense in 2005.

AES expects to reschedule the release of its second quarter 2005
financial results and conference call that was previously
scheduled to be held on August 9, and will announce a new date
at a future time.

AES is a leading global power company, with 2004 revenues of
$9.5 billion. AES operates in 27 countries, generating 44,000
megawatts of electricity through 124 power facilities and
delivers electricity through 15 distribution companies. Our
30,000 people are committed to operational excellence and
meeting the world's growing power needs. To learn more about
AES, please visit www.aes.com or contact media relations at
media@aes.com.

CONTACT: AES Corporation
         Media Contact
         Robin Pence
         Phone: 703-682-6552
                  or
         Investor Contact
         Scott Cunningham
         Phone: 703-682-6336


BANCO BRADESCO: Creates Partnership With Leader Magazine
--------------------------------------------------------
Banco Bradesco S.A. (Bradesco) announced that it has teamed up
with Uniao de Lojas Leader S.A. (Leader Magazine) for the
management of Leadercard. In a letter sent to the U.S.
Securities and Exchange Commission (SEC), the Company wrote:

Banco Bradesco S.A. (Bradesco) and Uniao de Lojas Leader S.A.
(Leader Magazine), a retailer mainly operating in the markets of
Rio de Janeiro and Espirito Santo states, announce the creation
of a partnership for the management of Leadercard, one of the
five largest "Private Label" credit card companies in Brazil.

Leadercard has a portfolio of 2.3 million "Private Label" cards,
with sales in the first half of 2005 of nearly R$151 million.

In addition, the partners agreed the start up of a financing
company, subject to the Central Bank of Brazil's approval.
Leadercard's client portfolio will be its core business.
Bradesco and Leader Group will have equal equity participation
in this operation.

Besides increasing the card base of Leadercard, with respective
higher sales, the partnership will provide Leader's clients with
the opportunity to access banking products and services offered
by Bradesco, such as, insurance, private pension plans,
consortium purchase plans, savings bonds, personal loan, bills
collection and other activities inherent to the banking
correspondent operation.

CONTACT: Banco Bradesco S.A.
         Predio Novo - 4 ANDAR
         Cidade de Deus
         S/N, Osasco
         Sao Paulo, 06029-900
         Brazil
         Phone: 55-11-3684-9229
         Web site: http://www.bradesco.com.br


CELPE: CVM Authorizes Sale of $173M, 5-Yr Debt
----------------------------------------------
Celpe, which distributes power in the northeast state of
Pernambuco, secured approval from securities regulator CVM to
sell BRL430 million (US$173 million) in five-year debt on the
local market.

Business News Americas reports that the proceeds from the sale
will be used to restructure the Company's debt. Spain's
Iberdrola controls Celpe through its Brazilian holding company
Neoenergia.

Meanwhile, Celpe's sister company, power distributor Cosern, is
planning to sell BRL400 million in local debt. Cosern, which
distributes power in the northeastern state of Rio Grande do
Norte, has scheduled a shareholders' meeting for August 8 to
vote on the debt issue.


VARIG: Fights to Recover Cash From GE Unit
------------------------------------------
Loaded with debt and hungry for cash to pay its bills, Brazilian
airline Viacao Aerea Riograndense SA (Varig) sought to recover
US$5.1 million from GE Commercial Aviation Services LLP (GECAS),
a unit of General Electric Co (GE), says Dow Jones Newswires.

According to documents filed with a federal bankruptcy court in
New York's Southern District, Varig claims that Gecas
"wrongfully, unilaterally and without notice" instructed JP
Morgan Chase Bank in New York to transfer the cash.

GECAS served the notice on June 20, the next working day after
Varig filed for protection from creditors on June 17. GECAS said
the court filing meant Varig had broken terms of a May 2004
financial agreement and therefore triggered a default.

But Varig insisted that the Gecas instruction contravened the
New York court's temporary restraining order and subsequent
preliminary injunction.

Varig needs the money to meet its current obligations to
aircraft lessors and other suppliers, the airline said.

CONTACT:  VARIG S.A. (Viacao Aerea Rio-Grandense)
          Avenida Almirante Silvio de Noronha, 365
          Rio de Janeiro, RJ 20021-010
          Brazil

          VICENTE CERVO - FOREIGN REPRESENTATIVE OF VARIG
          Attorneys for the Foreign Representative:
               PILLSBURY WINTHROP SHAW PITMAN LLP
               1540 Broadway
               New York, New York 10036-4039
               (212) 858-1000 (Phone)
               (212) 858-1500 (Fax)
               Rick B. Antonoff (RBA-4158)



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

CENTRAGAS: 'BB' Rating Reflects One-Source Revenue Stream
---------------------------------------------------------
RATIONALE

The 'BB' foreign currency rating on the US$172 million senior
secured notes due 2010 issued by Centragas-Transportadora de Gas
de la Region Central de Enron Development and Cia. S.C.A.
(Centragas) reflects the one-source revenue stream, liquidity
risk from Centragas' bondholders' put option, and nonrecourse to
either the sponsors or off-taker. However, the pipeline's
strategic position in Colombia, adequate tariff and bankruptcy-
remote structure, and healthy operation and debt-service
coverage records strengthen Centragas' credit profile, and
partially offset the risks.

The bondholders have a put option for Centragas to buy the bonds
from them if Enron Corp.'s ownership in Centragas falls below
25%, Enron's ownership falls below 51% in Enron Development
Corp., or Enron Development is no longer Centragas' general
partner. Under current conditions, Standard & Poor's Ratings
Services does not expect that bondholders will exercise the put
option; instead, they would trigger the need for Centragas to
refinance debt under stressed conditions in the markets, which
would also subject them to Colombian law and uncertainties
inherent to bankruptcy if their right to exercise the put option
causes solvency problems for Centragas.

Centragas can only distribute dividends from the distribution
account when the debt-service reserve is fully funded and the
debt-service coverage ratio exceeds 1.2x. In recent years, part
of Centragas' excess cash has been distributed to shareholders
in the form of intercompany loans. In 2002, Centragas and its
shareholders signed an agreement by which future dividends paid
to Enron or its affiliates will be used to reduce the
outstanding balance on the aforementioned intercompany loans. As
of June 2005, the balance of these loans has been reduced to
US$41 million.

Centragas has been operating according to standards in the
project's contracts. Only minor interruptions have occurred, and
Centragas has met the pipeline's maintenance specifications. The
debt-service coverage ratio for the quarter ended June 2005 was
adequate at 1.55x.

Centragas is an Enron Development special-purpose entity that
built, owns, operates, and will eventually transfer a natural
gas pipeline to Ecogas. The pipeline is about 578 kilometers
long and runs from Ballena to Barrancabermeja in Colombia.

OUTLOOK

The stable outlook reflects the foreign currency rating and
outlook of the Republic of Colombia. Reduced support from the
Colombian government to its Gas Plan or another unforeseen event
that could jeopardize complete and timely payments to the
project would result in a negative rating action by Standard &
Poor's.

Primary Credit Analyst: Luis Manuel Martinez, Mexico City (52)
55-5081-4462; luis_martinez@standardandpoors.com

Secondary Credit Analyst: Jose Coballasi, Mexico City (52)55-
5081-4414; jose_coballasi@standardandpoors.com



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

KAISER ALUMINUM: Dispute Perpetuates Confirmation Hearing Delays
----------------------------------------------------------------
Scott Lamb, Kaiser Aluminum Corp. vice president for investor
relations and corporate communications, advises that the Court
has not yet scheduled a confirmation hearing on the Third
Amended Joint Plans of Liquidation for Alpart Jamaica, Inc., and
Kaiser Jamaica Corporation and for Kaiser Alumina Australia
Corporation and Kaiser Finance Corporation, pending a ruling
from Judge Fitzgerald on the dispute between the Senior and
Subordinated Noteholders.

The previous hearings on the dispute were not completed, Mr.
Lamb says.

"The Court will attempt to set a date for the Confirmation
Hearing once this ruling [on the dispute] is issued," Mr. Lamb
adds.

Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corporation -- http://www.kaiseraluminum.com/-- is a leading
producer of fabricated aluminum products for aerospace and high-
strength, general engineering, automotive, and custom industrial
applications.  The Company filed for chapter 11 protection on
February 12, 2002 (Bankr. Del. Case No. 02-10429), and has sold
off a number of its commodity businesses during course of its
cases.  Corinne Ball, Esq., at Jones Day, represents the Debtors
in their restructuring efforts.  On June 30, 2004, the Debtors
listed $1.619 billion in assets and $3.396 billion in debts.
(Kaiser Bankruptcy News, Issue No. 73; Bankruptcy Creditors'
Service, Inc., 215/945-7000)



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

CINTRA: Cuts Net Loss by 39.7% in 2Q05
--------------------------------------
CINTRA, S.A. DE C.V., (BMV: CINTRA) Mexico 's and Latin America
's leading air transportation system, reported its unaudited
results for the second quarter of 2005, among which it noted the
following:

(All figures are expressed in constant pesos as of June 30th,
2005 unless otherwise specified. Financial statements are
prepared in accordance with generally accepted accounting
practices in Mexico)

General

Highlights

Load factor                            64.7%
Total revenues (millions of  pesos)    9,271
EBITDAR (millions of  pesos)           1,210
Operating income (millions of pesos)      80
Net income (millions of  pesos)         (296)

Second Quarter 2005 compared to Second Quarter 2004

Comparative Highlights

Second Quarter

                             2005        2004       Variation

Load factor                  64.7%        64.0%       0.7 p.p.

Total revenues
  (millions of pesos)         9,271        8,680       6.8%
EBITDAR (millions of pesos)   1,210        1,082       11.8%
EBITDAR (% of revenue)         13.0%       12.5%       0.5 p.p
Operating income
  (millions of pesos)            80         (65)
Operating income
  (% of revenue)                0.9%       (0.7%)
Net income (loss)
  (millions of pesos)          (296)        (491)       39.7%

Total revenues displayed an increase of 6.8% compared to the
second quarter of 2004, principally a product of the 5.1% growth
in RPKs -Revenue Passenger Kilometers-  which is in turn
explained by the fact that passengers transported flew on
average longer segments than in 2004. It is worth noting that
the average yield has been maintained effectively unchanged.

EBITDAR experienced an increase of 11.8% in relation to the
second quarter of 2004, derived from the growth in revenues that
offset the 6.1% increase registered in operating expenses due to
fuel price increases.

Available Seat and Revenue Passenger Kilometers         Second
Quarter
                                     2005      2004    Variation

ASKs (millions)                    10,795    10,381      4.0%
RPKs (millions)                     6,984     6,642      5.1%
Yield (Passenger income /
  RPKs) (pesos)                     1.121     1.112      0.8%
Cost per ASK(pesos)                 0.819     0.823     (0.5%)
Cost per ASK without fuel (pesos)   0.624     0.676     (7.7%)

During the period April-June 2005, Available Seat Kilometers -
ASKs- were 10,795 million, higher by 4.0% than in the same
period of 2004.  Demand expressed in RPKs for the second quarter
of 2005 reached 6,984 million, 5.1% higher than in the same
period of 2004. For the second quarter of 2005, the yield
(average passenger income per RPK) reached 1.121 pesos, 0.8%
higher than in the same period of 2004, principally a result of
the fare mix and the effect of the passenger fuel charge
surcharge.

Cost per ASK was 0.819 pesos during the second quarter of 2005,
smaller by 0.5% than in 2004, an effect of the various cost
saving measures and expense controls that have been applied. It
is worth noting that in the second quarter of 2005, cost per
ASK, without giving effect to jet fuel expense, was 0.624 pesos,
lower by 7.7% than in the same period in 2004.

A. Operating Results
B.
Revenues

Total revenues during the second quarter of 2005 were 9,271
million pesos, a 6.8% increase compared to the same period in
2004, generated by increases of 13.7% in other income, 7.8% in
cargo revenue, 7.4% in international passenger revenue, 5.1% in
domestic passenger revenue and 2.1% in excess baggage.

Total revenues were US$850 million during the second quarter of
2005, a 15.7% increase with respect to the same period in 2004,
a product of the increase in all revenue line items.

Operating expenses

Total operating expenses during the April-June 2005 period were
8,062 million pesos, 6.1% higher than in the same period in
2004. Personnel expense reached 2,618 million pesos, effectively
the same as in the second quarter of 2004.  This highlights the
efforts of the Group's companies to maintain profitability.

Jet fuel expense during the April-June 2005 period totaled 2,187
million pesos, an increase of 39.6% compared to the same period
in 2004.  This increase was mostly a result of the 37.9% average
increase in the average price per liter of jet fuel, compared to
average prices during the second quarter of 2004.  Additionally,
a 2.3% increase in operations was recorded.

Platform and traffic servicing expenses totaled 911 million
pesos during the April-June quarter of 2005, a 1.0% increase
compared to the same period in 2004, due principally to the
growth in the cost of the airport services provided to
Aerocaribe -which ceased operations June 30, 2005- for its use
of Fokker 100 equipment.

Maintenance expenses were maintained on a stable basis compared
to similar periods. In this quarter they reached 744 million
pesos, a slight reduction from 2004, a product of process
optimization and lower warehouse expenses.

Passenger service expense totaled 226 million pesos, a reduction
of 5.0% compared to the same period in 2004, as a result of
various cost saving measures undertaken, in particular with
respect to food and beverages.

During the second quarter of 2005 commissions to travel agents
were 543 million pesos, a reduction of 8.5% with respect to
2004, a result achieved despite the increases of 5.1% in
domestic passenger revenues and the 7.4% increase in
international passenger revenues.

Promotion and sales expense during the April-June 2005 quarter
was 491 million pesos, a 1.4% reduction compared to 2004.  This
result was derived principally from the strengthening of direct
distribution channels -ticket offices and internet-.

Insurance expense was 89 million pesos during this quarter, a
reduction of 23.8% compared to the second quarter of 2004,
resulting from the impeccable operating record of the companies
of the Group, which permitted achieving significant reductions
in premium payments with insurance companies for the period
commencing in June of 2005.

During the April-June 2005 period, administration and IT
expenses totaled 253 million pesos, a decrease of 13.2% compared
to the same period of 2004, resulting from the implementation of
various austerity measures, which included the reduction of
billings from service providers, the cancellation of consulting
agreements and the optimization in the use of personnel
resources.

EBITDAR

As a result of the revenue and expense items described above,
EBITDAR in this quarter was 1,210 million pesos, an 11.8%
increase compared to the second quarter of 2004.

Capital expenditures

Capital expenditures during the April-June of 2005 period were
1,130 million pesos, a 1.5% reduction compared to the same
period in 2004. Flight equipment rent expenses totaled 893
million pesos, a reduction of 3.3% compared to the same quarter
in 2004 as a result of the return of Boeing 757 and Fokker 100
aircraft by Mexicana, which also achieved reductions in rent for
Airbus A320 and 318 aircraft from contract renewals.

Depreciation expense was 237 million pesos, an increase of 5.8%
compared to the same period in 2004.  This difference was
generated because during fiscal year 2004 the depreciation of
the Boeing 727 and Fokker 100 aircraft -which were retired by
Mexicana de Aviación- was registered under other expenses
because the aircraft were not operating.  Once they were
substituted for by Airbus 318 and 319 aircraft, the depreciation
expense was recorded under depreciation.

Operating income

During the second quarter of 2005, CINTRA generated operating
income of 80 million pesos, comparing favorably to an operating
loss of 65 million pesos registered in the same period in 2004.

Integral cost of  financing

During the April-June period of 2005, integral cost of financing
reached 48 million pesos, a reduction of 78.5% compared to the
same quarter of 2004.  Financial expense totaled 66 million
pesos, a reduction of 34.6% compared to the same period of 2004,
the result principally of the increase in cash flow and the
reduction of liabilities.

The line item of foreign exchange variations during the second
quarter of 2005 registered a favorable figure of 13 million
pesos, against an expense of 126 million pesos in 2004, the
product of a favorable exchange rate movement that occurred
between the respective periods as well as from prior quarters.

During the period April-June 2005, results from monetary
position generated a positive figure of 6 million pesos, similar
to 2004, a result of the composition of the monetary items, as
well as the inflation effect during the period.

Net income

During the second quarter of 2005 Cintra generated a net loss of
296 million pesos, 39.7% less than that generated during the
same period in 2004.

Relevant events

During the April-June 2005 period, the following relevant events
occurred, among others, as described below:

Structure of the sales transaction for the assets of Cintra

In its meeting of May 26, 2005, the Board of Directors of Cintra
determined that the sales process for the airline groups - Grupo
Aeromexico, S.A. de C. V and Grupo Mexicana, S.A de C. V.-
should be carried out simultaneously in two sequential phases.
The first, consisting of a strategic sale of a controlling share
of at least 51% of the capital and up to 100%. The remaining
capital, up to 49% thereof, would remain with Cintra, which
would preserve minority rights.  These would include veto rights
over certain strategic decisions that could affect the future of
the companies and registration rights to sell its shares in
capital markets through a public offering.

Click Mexicana

Click Mexicana began offering its services on July 1, 2005
through electronic channels -call center and internet- in which
it made its excellent fares available to the public. This
airline will commence operations with 6 Fokker 100 aircraft
reconfigured to offer greater comfort. In the next four months 4
more Fokker 100 aircraft will be added.

Renewal of agreements with Sabre Travel Network

Cintra renewed its agreements with Sabre Travel Network, a
company recognized worldwide for the development of global
distribution and reservations systems in the travel sector. This
renewal will permit the airlines of the Group to continue to use
the technological and commercial resources of Sabre to expand
their distribution, promotion and service capabilities.

Changes in fleet composition

In order to improve the efficiency of its operations and offer
improved service, Mexicana added 2 Airbus A 320 aircraft and
retired one Boeing 757. Aeromexico retired 4 aircraft, 1 MD 82,
2 MD 83 and 1 Boeing 757.

Increase in jet fuel prices

An external factor out of Cintra's control is the price of jet
fuel, the average price per liter of which during the second
quarter of 2005 was 5.02 pesos, 37.9% higher than the same
period in 2004.  This item directly influenced the results of
the companies of the Group and its scope counteracted to a large
extent the positive effects of other expense-reduction actions
taken.

Foreign exchange

The parity of the Mexican peso during the second quarter of 2005
was 10.97 pesos per U.S. dollar compared to 11.39 pesos during
the same quarter of 2004.

Improvement in cash flow

During the period from April through June 2005, cash flow had a
positive shift from the end of the first quarter of 2005 of
approximately US$4.8 million.

Taking advantage of market niche opportunities

In order to attend effectively demand in important market
niches, Aeromexico added flights in the Guadalajara-Ontario and
Mexico - Los Angeles routes. On the other hand, Mexicana did the
same in the following routes:  Mexico-Chicago , Mexico - San
Antonio , Mexico - Montreal and Mexico-Vancouver.

Promotions by the airlines

During the second quarter, Aeromexico launched, among other
promotions, the "Fly free for life" campaign. Mexican de
Aviación similarly promoted various commercial strategies and
alliances principally with American Express and Bank of America.
In both cases, the strategies are designed to increase sales
volume, strengthen corporate image and provide greater benefits
to the customers.

Mexicana receives the Excellence Cup

The Service Excellence Cup Award is given annually to only one
of the more than 200 clients of EDS around the world, with
Mexicana de Aviación receiving the 2004 award. This prize is
based on high levels of service provided throughout the year.
These results highlighted that this airline was recognized for
its performance and levels of excellence in its Overall
Performance, Referenciability, Renewability, Value, and
Competitive Advantage categories.

Principal Accumulated Results January-June 2005

Revenues

Total revenues during the first half of 2005 were 18,266 million
pesos, a 10.2% increase compared to 2004, principally as a
result of increases of 15.9% in other items, 13.5% in
international passenger revenue, 12.1% in excess baggage, 10.5%
in cargo, and 6.7% in domestic passenger revenue.

Total revenues during the first half of 2005 totaled US$1,650
million dollars, a 16.0% increase compared to 2004.

Operating expenses

During the January-June 2005 period total operating expenses
were 15,878 million pesos, a 7.2% increase compared to 2004, as
a result of the pronounced 41.0% increase in jet fuel expenses,
as well as the 2.4% growth in maintenance expense, 2.1% in
traffic and ramp expense, and 0.6% in salaries and wages.  It is
worth noting that in the other expense items savings were
achieved as a result of the application of various austerity and
cost-savings programs

It is important to point out that the ratio of operating
expenses (without including jet fuel expenses) to total revenues
for the first six months of 2005 was 64.5%, compared to 71.8%
during 2004, a reduction of 7.3 percentage points resulting from
various cost-saving measures implemented.

During the first six months of 2005, operating expenses totaled
US$1,435 million, 12.9% higher than in the same period of 2004,
principally a result of the sharp 48.5% increase in jet fuel
expenses.

EBITDAR

During the January-June 2005 period, EBITDAR reached 2,387
million pesos, 613 million pesos greater than the amount for the
same period in 2004.

Capital expenditures

Capital expenditures during the first six months of 2005 totaled
2,304 million pesos, effectively the same with respect to 2004.
This was a result of a 0.5% reduction in rent and a 3.5%
increase in depreciation.

Operating income

Cintra generated operating income of 83 million pesos in the
first six months of 2005, contrasting favorably with the
operating loss of 523 million pesos registered in 2004.

Integral cost of financing

Integral cost of financing corresponding to the first six months
of 2005 was 65 million pesos, a reduction of 63.0% with respect
to 2004 and a result of the contraction by 36.6% in financial
expenses, a favorable result of 13 million pesos in foreign
exchange variations and a reduction of 68.1% in results from
monetary position.

Net income

During the April-June period of 2005 period, CINTRA generated
net income of 67 million pesos, compared to a net loss of 1,007
million pesos in the same period of 2004.

To see financial statements: http://bankrupt.com/misc/CINTRA.htm

CONTACT:  CINTRA S.A. de C.V.
          Av Xola 535 piso 16 col. del Valle México
          DF tel. (55) 5448 - 8000
          E-mail: infocintra@cintra.com.mx


CINTRA: Iberia Seeks More Info on Planned Privatization
-------------------------------------------------------
The upcoming privatization of Cintra-controlled airlines,
Mexicana and Aeromexico, appeared to have piqued the interest of
Spanish airline Iberia. According to Reuters, Iberia has
requested information about the sale, particularly, the level of
ownership a foreign carrier might be allowed to buy.

"If our hands are tied it's not really interesting for us," a
spokesman for Iberia said. "The freedom of management we would
have, that's probably the most important thing."

Cintra will take bids for minimum stakes of 51%. Both airlines,
which account for about 80% of Mexican aviation, must be
controlled by Mexican investors and any foreign investor must
join a Mexican-led consortium.

The Mexican government took control of the airlines in the mid-
1990s after an economic crisis led to their financial collapse.
It wants to return them to the private sector, but previous
plans to sell the carriers have been delayed, most recently by
the crisis that hit the industry after the September 11, 2001
attacks.


GRUPO SIMEC: Gives Further Details on PAV Republic Acquisition
--------------------------------------------------------------
Grupo Simec, S.A. de C.V. (AMEX: SIM) ("Simec") and its parent
company Industrias CH, S.A. de C.V. ("ICH") have acquired 100%
of the Stock of PAV Republic, Inc. ("Republic"). Simec, ICH's
largest subsidiary, has acquired 50.2% of Republic's stock, and
ICH purchased the remaining 49.8%. The cash purchase price of
USD $229 million was financed by internally generated funds.

On June 30, 2005, the total amount of Republic's liabilities was
of US$166 million, with a weighted average cost per year of
7.78%. One of Simec and ICH's main objectives is to prepay the
company's debt within the next 12 months, starting with USD $71
million that would immediately be paid once the bank creditors
accept.

Republic is the leading producer of special bar quality (SBQ)
steel in the United States and, together with Simec, will become
the largest producer of this kind of steel in North America.

With this acquisition, Simec anticipates an installed annual
capacity of nearly three million metric tons of steel. Simec
expects that in the next 12 months, sales in metric tons will
exceed 2.7 million metric tons of finished products.

Simec's recent sales of SBQ represented one third of its total
sales. As a result of the acquisition, this line of products is
expected to account for 65% of the consolidated sales of Simec.
The acquisition strategically positions Simec in a market that
typically has less price volatility and higher margin than
commodity steel products.

Simec revenues in the last 12 months were approximately USD $600
million. Simec expects that revenues will approach USD $1.8
billion for the next 12 months.

Simec projects EBITDA for the next 12 months of USD $270
million, an increase of almost 50% over its last-twelve-months
EBITDA. This increase would result not only from Republic's
operations but also from synergies and economics of scale.

Republic has six production plants located in Ohio, Indiana and
New York; and one facility in Ontario, Canada. Those seven
plants employ more than 2,500 people and have a joint annual
installed capacity of up to two million metric tons for liquid
steel and approximately 1.7 million metric tons for finished
steel products.

CONTACT: Grupo Simec, S.A. de C.V.
         Adolfo Luna Luna
                Or
         Jose Flores Flores,
         Phone: 011-52-33-1057-5740


MAXCOM TELECOMUNICACIONES: Reports Improving 2Q05 Revenues
----------------------------------------------------------
LINES:

The number of lines in service at the end of 2Q05 increased 28%
to 188,283 lines, from 147,238 lines at the end of 2Q04, and 6%
when compared to 177,007 lines in service at the end of 1Q05.

During 2Q05, 17,457 new voice lines were installed, 33% higher
than the 13,105 lines installed during 2Q04. When compared to
1Q05, the number of installations decreased 19% from 21,444
lines.

During 2Q05, the monthly churn rate for voice lines was 1.6%,
lower than the 1.9% monthly average churn during 2Q04. When
compared to 1Q05, churn rate decreased from 1.9%. Voluntary
churn in 2Q05 resulted in the disconnection of 2,422 lines, a
rate of (0.5%), similar to the rate registered in 1Q05 (0.5%)
with 2,446 disconnected lines. Involuntary churn resulted in the
disconnection of 5,156 lines, a rate of (1.1%), which is in line
with 6,626 disconnected lines in 1Q05 (1.4%).

                                                      vs.   vs.
      LINES                 2Q04     1Q05     2Q05   2Q04  1Q05
    Business Lines         26,506   30,617   31,612   19%    3%
    Residential Lines     110,792  135,132  142,425   29%    5%
    Public Telephony
      Lines                     -    1,298    2,334   N/A   80%
    Total Voice Lines     137,298  167,047  176,371   28%    6%
    Wholesale               9,940    9,960   11,912   20%   20%
    Lines in Service(1)   147,238  177,007  188,283   28%    6%
    Data Equivalent
      Lines(2)             15,345   19,233   20,948   37%    9%
    (1) Does not include Data Equivalent Lines
    (2) Data Conversion @ 64Kbps

    CUSTOMERS:

Total voice customers grew 30% to 138,828 at the end of 2Q05,
from 106,447 at the end of 2Q04, and 7% when compared to 129,535
customers at the end of 1Q05.

The change in the number of voice customers by category was the
following: (i) business customers increased by 11% from 2Q04 and
5% from 1Q05; and, (ii) residential customers increased by 31%
from 2Q04 and 7% from 1Q05.

                                                    vs.  vs.
      VOICE CUSTOMERS     2Q04     1Q05     2Q05   2Q04  1Q05
    Business             3,802    4,034    4,227   11%   5%
    Residential        102,645  125,501  134,601   31%   7%
    Total Voice
      Customers        106,447  129,535  138,828   30%   7%

    Data Customers       5,833    6,816    7,079   21%   4%

    REVENUES:

Revenues for 2Q05 increased 30% to Ps$275.8 million, from
Ps$213.0 million reported in 2Q04. Voice revenues for 2Q05
increased 24.4% to Ps$221.9 million, from Ps$178.4 million
during 2Q04, driven by a 28% increase in voice lines while ARPU
remained at the same level. Data revenues for 2Q05 were Ps$13.0
million and contributed with 5% of total revenues. Data revenues
in 2Q04 were Ps$9.1 million. Wholesale revenues for 2Q05 were
Ps$40.9 million, a 60% increase from Ps$25.5 million in 2Q04.

Revenues for 2Q05 increased 12% to Ps$275.8 million, from
Ps$246.3 million in 1Q05. Voice revenues for 2Q05 increased 11%
to Ps$221.9 million, from Ps$200.0 million during 1Q05. Data
revenues in 2Q05 increased 16% to Ps$13.0 million, from Ps$11.2
million during 1Q05. During 2Q05, revenues from Wholesale
customers increased 16% to Ps$40.9 million, from Ps$35.1 million
in 1Q05.

COST OF NETWORK OPERATION:

Cost of Network Operation in 2Q05 was Ps$92.2 million, a 19%
increase when compared to Ps$77.3 million in 2Q04. Over the same
period, outbound traffic decreased 1%, showing an increase on a
cost per minute basis basically as a result of the lease of
capacity on a CATV network in the city of Queretaro, where we
started providing a "triple play" service comprised of Cable TV,
internet and telephone service; combined with a shift of the
outbound traffic pattern from local to long distance and calls
to cellular phones. Local traffic was 93% of total traffic in
2Q04 and 88% in 2Q05. The Ps$14.9 million increase in Cost of
Network Operation was generated by: (i) Ps$9.9 million, or 18%,
increase in network operating services, mainly driven by Ps$7.4
million higher calling party pays interconnection charges, a
Ps$1.3 million higher long distance interconnection; and, Ps$1.3
million lease of capacity on a CATV network, which were
partially offset by Ps$0.1 million lower AsistelMax, lease of
ports and other services cost; (ii) Ps$2.9 million higher
technical expenses, basically as a result of Ps$2.3 higher
maintenance expenses; and, Ps$0.5 higher leases of sites and
poles; and, (iii) Ps$2.0 million, or 101%, increase in
installation expenses and cost of disconnected lines.

Cost of Network Operation increased 10% quarter-over-quarter
when compared to Ps$83.6 million in 1Q05. The Ps$8.6 million
increase in Cost of Network Operation was generated by: (i)
Ps$8.2 million, or 14% increase in Network operating services,
mainly driven by Ps$5.8 million higher calling party pays
charges, Ps$2.3 million higher long distance reselling cost,
Ps$1.1 million lease of a cable TV network; and, Ps$0.2 higher
AsistelMax and other services cost, which were partially offset
by Ps$1.2 million lower leases of circuits; (ii) Ps$1.3 million
increase in Technical expenses, partially offset by a Ps$1.0
million decrease of installation expenses and cost of
disconnected lines. On a traffic-related cost basis, the cost
per minute increased as outbound traffic decreased 4%.

Gross margin at 67% in 2Q05 showed an improvement from 64%
reported in 2Q04 and from the 66% reported in 1Q05.

SG&A:

SG&A expenses were Ps$113.8 million in 2Q05, a 25% increase from
Ps$91.0 million in 2Q04. The increase was mainly driven by: (i)
higher salaries, wages and benefits of Ps$13.0 million as a
result of increased headcount; (ii) higher sales commissions of
Ps$7.4 million; (iii) higher maintenance expenses of Ps$0.9
million; and, (iv) higher general and insurance expenses of
Ps$3.4 million. Higher expenses were partially offset by (i)
lower fees paid to external advisors of Ps$0.5 million (ii)
lower advertising expenses of Ps$0.7, (iii) Ps$0.4 lower offices
and warehouse leases; and, (iv) Ps$0.4 million lower bad debt
reserve

SG&A expenses in 2Q05 increased 9% to Ps$113.8 million from
Ps$104.7 million in 1Q05. The Ps$9.1 million increase was
generated by: (i) higher salaries, wages and benefits of Ps$5.9
million, (ii) Ps$1.3 million higher sales commissions, (iii)
Ps$0.6 million higher market research, (iv) Ps$0.6 million
higher bad debt reserve, (v) Ps$0.5 higher office supplies; and,
(vi) higher general and advertising expenses of Ps$1.0 million.
Higher expenses were offset by: (i) Ps$0.5 million lower
consulting fees paid to external advisors; and, (ii) Ps$0.3
million lower offices and warehouse leases.

EBITDA:

EBITDA for 2Q05 increased 57% to Ps$69.9 million, from Ps$44.6
million reported in 2Q04. When compared to 1Q05, EBITDA grew 21%
from Ps$58.0 million.

EBITDA margin of 25% improved from 21% of 2Q04, and from 24% in
1Q05.

CAPITAL EXPENDITURES:

Capital expenditures for 2Q05 were Ps$69.7 million, 9% higher
than the Ps$64.1 million reported in 2Q04, and a 17% decrease
when compared to Ps$84.1 million in 1Q05.

CASH POSITION:

Maxcom's cash position at the end of 2Q05 was Ps$45.1 million in
Cash and Cash Equivalents, including Ps$9.7 million of
restricted cash in connection with the bank's credit facilities,
compared to Ps$41.2 million at the end of 2Q04. Cash and Cash
Equivalents at the end of 1Q05 were Ps$37.4 million, including
Ps$5.6 million of restricted cash. During 2Q05, Maxcom closed a
new credit facility in local currency with a Mexican bank.

SUBSEQUENT EVENTS:

On July 14, we entered into a short-term commercial paper
program in Mexico, issuing 1,500,000 notes with a face value of
Ps$100.00 for a total amount of Ps$150.0 million. Notes will be
payable on June 15, 2006 and will bear interests at a rate equal
to the Inter-banking Equilibrium Interest Rate (TIIE) plus 2.75
points and applicable taxes (13.24% for the first period).
Coupons will be payable monthly starting August 11, 2005.

Maxcom Telecomunicaciones, S.A. de C.V., headquartered in Mexico
City, Mexico, is a facilities-based telecommunications provider
using a "smart-build" approach to deliver last-mile connectivity
to micro, small and medium-sized businesses and residential
customers in the Mexican territory. Maxcom launched commercial
operations in May 1999 and is currently offering Local, Long
Distance and Internet & Data services in greater metropolitan
Mexico City, Puebla and Queretaro. The information contained in
this press release is the exclusive responsibility of Maxcom
Telecomunicaciones, S.A. de C.V. and has not been reviewed by
the National Banking and Securities Commission of Mexico (CNBV).
The registration of the securities described in this press
release before the Special Section of the National Registry of
Securities (Registro Nacional de Valores) held by the CNBV does
not imply a certification of the investment quality of the
securities or of Maxcom's solvency. The securities described in
this press release have not been registered before the
Securities Section of the National Registry of Securities held
by the CNBV and therefore can not be publicly offered or traded
in Mexico. The trading of these securities by a Mexican investor
will be made under such investor's own responsibility.

To see financial statements: http://bankrupt.com/misc/Maxcom.htm

CONTACT:  MAXCOM TELECOMUNICACIONES, S.A. DE C.V.
          Jose-Antonio Solbes, Mexico City, Mexico
          Tel: +52-55-5147-1125
          E-mail: investor.relations@maxcom.com

          Lucia Domville, New York, NY
          Tel: +1-917-375-1984
          E-mail: ldomville@nyc.rr.com


VITRO: Negotiating With Libbey on Sale of 51% of Vitrocrisa
-----------------------------------------------------------
Vitro, S.A. de C.V. (NYSE: VTO and BMV: VITROA) announced
Wednesday that it is in discussions to pursue the sale of its 51
percent stake in Vitrocrisa to Libbey Inc. Vitrocrisa is a joint
venture between Vitro and Libbey, and is the largest
manufacturer of glass tableware in Latin America. Libbey
currently owns 49 percent of the shares of Vitrocrisa and serves
as the exclusive distributor of Vitrocrisa's products to the
United States and Canada since the joint venture's inception in
1997.

With annual sales of US $236 million for 2004, Vitrocrisa
manufactures and distributes glassware for the retail, food
service, and industrial segments of the glassware industry.

Vitro, S.A. de C.V. (NYSE: VTO; BMV: VITROA), through its
subsidiary companies, is one of the world's leading glass
producers. Vitro is a major participant in three principal
businesses: flat glass, glass containers and glassware. Its
subsidiaries serve multiple product markets, including
construction and automotive glass; food and beverage, wine,
liquor, cosmetics and pharmaceutical glass containers; glassware
for commercial, industrial and retail uses. Vitro also produces
raw materials, equipment and capital goods for industrial uses.
Founded in 1909 in Monterrey, Mexico-based Vitro has joint
ventures with major world-class partners and industry leaders
that provide its subsidiaries with access to international
markets, distribution channels and state-of-the-art technology.
Vitro's subsidiaries have facilities and distribution centers in
eight countries, located in North, Central and South America,
and Europe, and export to more than 70 countries worldwide.

CONTACT:  Vitro, S.A. de C.V.
          Media Relations: Albert Chico Smith
          Tel: +52-81-8863-1335
          E-mail: achico@vitro.com

          Financial Community: Leticia Vargas
          Tel: +52-81-8863-1219
          E-mail: lvargasv@vitro.com

          Adrian Meouchi
          Tel: +52-81-8863-1350
          E-mail: ameouchi@vitro.com
          URL: http://www.vitro.com

          U.S. Contacts: (Breakstone Group)
          Susan Borinelli
          Tel: +1-646-452-2336
          E-mail: sborinelli@breakstone-group.com

          Michael Fehle
          Tel: +1-646-452-2336
          E-mail: mfehle@breakstone-group.com



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

R&G FINANCIAL: Issues Update on Financial Restatement
-----------------------------------------------------
R&G Financial Corporation (NYSE: RGF), one of Puerto Rico's
largest mortgage lenders, said Wednesday that it will have to
restate financial results for the last three years and raised
its estimated after-tax write-down to as much as US$134 million.

In an 8K/A filing with the Securities and Exchange Commission,
the Company wrote:

"We previously disclosed in April 2005 the need to restate our
interim and audited consolidated financial statements for the
periods from January 1, 2003 to December 31, 2004. We made this
determination based on our conclusion that we needed to change
the methodology we used for valuing residual interests retained
from our mortgage loan sale transactions. As a result, we
delayed release of our earnings for the first quarter of 2005.
In addition, we disclosed that our 2003 and 2004 audited
consolidated financial statements should not be relied upon, and
advised that management had determined that the Company had a
material weakness in internal control over financial reporting
as of December 31, 2004 relating to the lack of effective
controls over the valuation of the Company's residual interests
retained and that its previously filed Management's Report on
Internal Controls over Financial Reporting also needed to be
restated. We indicated that as a result of the foregoing, we
expect that at the time we file our restated audited
consolidated financial statements, PricewaterhouseCoopers LLP,
our registered independent public accounting firm, will issue an
adverse report on our internal controls over financial reporting
as of December 31, 2004.

We have been working diligently to complete the restatement
process and become current in our Securities and Exchange
Commission filings. We have hired an investment banking firm to
value our retained residual interests from our mortgage loan
sale transactions and we have hired another independent
registered public accounting firm as a consultant to review the
valuation process and the conclusions reached. We are also
actively working to address our internal control deficiencies
and continue to keep all of our regulators apprised of
developments as well as actively cooperating with the ongoing
informal investigation by the Securities and Exchange
Commission. Finally, in connection with the restatement effort,
the Audit Committee of the Board of Directors has retained the
law firm of Fried, Frank, Harris, Jacobson & Shriver LLP and a
financial services consulting firm, Promontory Financial Group,
LLP, to conduct an independent investigation into the
circumstances surrounding the valuation of the retained
interests, as well as other matters that it may deem to be
appropriate. The results of the investigation will be reported
to our regulators and to the extent appropriate, reflected in
the restatement of our financial statements. The Board of
Directors has also hired a third party valuation firm to
validate management's new retained interest valuations. While
this process is ongoing and good progress is being made on the
restatement of our audited consolidated financial statements,
due to the complex nature of the review and the need for all
valuations and any resulting adjustments to our audited
consolidated financial statements to be reviewed and accepted by
PriceWaterhouseCoopers LLP, we are unable to specifically
indicate when this process will be completed. We wish to provide
assurances that we are dedicated to achieving the completion of
the restatement process and the filing of our quarterly
financial reports for the current year as promptly as possible,
and we are working diligently toward that end. However, given
the time involved to complete the restatement process, we expect
that we will not be in a position to timely file our quarterly
report on Form 10-Q for the quarter ended June 30, 2005.

On the basis of the valuation method which is now being
utilized, we now believe that the Company will also need to
restate its interim and audited consolidated financial
statements for the year ended December 31, 2002, and the Audit
Committee of our Board of Directors has determined that such
financial statements should no longer be relied upon. While the
Company only engaged in a limited number of mortgage loan sales
transactions in the fourth quarter of 2002 which resulted in the
recognition of residual interests, based on the current
valuation methodology being utilized, management now believes
that the required adjustment to previously reported net income
dictates restating such consolidated financial statements.

As part of this restatement process, we are also reviewing
certain other matters in our audited consolidated financial
statements to evaluate whether any adjustments are required.
These areas include, among others, the accounting for the
deferral and recognition of mortgage origination fees and
expenses, revenue recognition related to specific loan sales
transactions, and the amortization process used in connection
with mortgage servicing rights. Our analysis is not yet complete
and will necessarily be subject to further review.

In our April 25, 2005 press release, management indicated that
on a preliminary basis, based on the valuation methodology
ultimately utilized, the fair value of the Company's retained
residual interests as of December 31, 2004 could be reduced by
an amount equal to between approximately $55 million to $90
million after taxes ($90 million and $150 million before taxes,
respectively). While still preliminary and therefore subject to
further change, based on the valuation method now being utilized
for valuing our retained residual interests as well as further
adjustments we believe will be necessary with respect to other
areas of our audited consolidated financial statements,
management now believes that in connection with the restatement
of the Company's audited financial statements for the period
from January 1, 2002 to December 31, 2004, stockholders' equity
will be adjusted by an aggregate of between $116 million to $134
million after taxes ($190 million and $220 million before tax,
respectively), of which approximately $160 million (pre tax)
relates to the adjustments for our retained residual interests.
Management is not able to provide at this time more information
as to how much of an adjustment to stockholders' equity is to be
applied to any particular calendar year. Assuming an aggregate
adjustment to stockholders' equity of $134 million (after taxes)
as of December 31, 2004, the Company expects that it would
remain a well-capitalized bank holding company in accordance
with federal banking regulatory standards. As of such date, the
Company further expects that its Puerto Rico bank subsidiary, R-
G Premier Bank of Puerto Rico, would remain well-capitalized and
its Florida thrift subsidiary, RG Crown Bank, would be
adequately capitalized. As a result of additional capital
contributions from the Company, RG Crown Bank is also well
capitalized at March 31, 2005 and June 30, 2005."

CONTACT:  Michael Goldberg, Esquire,
          Glancy Binkow & Goldberg LLP
          1801 Avenue of the Stars, Suite 311
          Los Angeles, California 90067
          E-mail to info@glancylaw.com
          URL: http://www.glancylaw.com



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

CANTV: Revenues Up, Margins Off Slightly in 2Q05
------------------------------------------------
- Strong growth in Mobile and Broadband drove 11.1% Revenue
increase.
- EBITDA and EBITDA margin dropped.

HIGHLIGHTS

- Total revenue grew 11.1% over second quarter 2004 due to
strong Mobile and Broadband growth.

- Mobile and Broadband customer bases, respectively, posted
27.6% and 86.9% increases over second quarter 2004.

- Second quarter mobile net additions exceeded 400 thousand and
increased our mobile customer base to nearly 3.6 million
subscribers.

- Continued strong ABA (ADSL) sales increased our customer base
to 212 thousand subscribers, a 13.7% sequential increase over
first quarter 2005 and a 103.8% increase over second quarter
2004.

- Continued fixed customer base year over year growth of 8.2%.

- Second quarter 2005 EBITDA was 27.9% lower than a year ago as
a result of growth-related increases in costs, change in the
accounting treatment of post retirement benefit obligations
expense and an increase in labor related legal contingencies.
The last two drivers had no impact on free cash flow. EBITDA
margin was 22%.

- CAPEX increased Bs. 119.2 billion over first half 2004. The
increase is consistent with the Company's 2005 initiatives to
expand coverage and capacity and improve the quality of its
service offerings.

- Due to positive results in the mobile market and other
considerations, the Company is updating its guidance. 2005
revenue growth range is now projected at 12% - 17% and EBITDA is
estimated to decline within a range of 5% to 10%, respectively.

- Cantv received an adverse decision in the lawsuit regarding
the adjustment of pensions of retirees of Cantv. A preliminary
evaluation indicates that the decision will have a material
impact on Cantv's financial condition, including a significant
impact on its shareholders' equity. Cantv is evaluating its
legal alternatives, including the request of a judicial review
of the decision. The potential effect of the adverse decision in
the lawsuit regarding the adjustment of pensions of retirees of
Cantv is not included in the guidance review.

Financial results are stated in accordance with Generally
Accepted Accounting Principles in Venezuela. Amounts in Bolivars
(the local currency) have been adjusted for inflation as of June
30, 2005. Translation of financial statements data to US$ has
been performed, solely for the convenience of the reader,
converting Bolivar amounts at the current official exchange rate
of Bs. 2,150 per US$1.

INITIAL NOTES

- On July 26, 2005, Cantv received an adverse decision of the
Social Chamber of the Supreme Court of Venezuela in the lawsuit
brought by Federacion Nacional de Jubilados y Pensionados de
Telefonos de Venezuela (FETRAJUPTEL) (the Venezuelan National
Telephone Association of Retirees and Pensioners) regarding the
adjustment of pensions of retirees of Cantv. The decision
requires Cantv to index the pensions of all of its retirees.
CANTV is reviewing the economic impact of this decision. A
preliminary evaluation indicates that the decision will have a
material impact on Cantv's financial condition, including a
significant impact on its shareholders' equity. Cantv believes
that the decision exceeds the guidelines issued by the
Constitutional Chamber of the Supreme Court issued January 25,
2005. Cantv is evaluating the legal alternatives it may have,
including the request of a judicial review of the decision by
the
Constitutional Chamber. Cantv expects that in the absence of
favorable judicial relief, Cantv will be required to record
significant additional pension liabilities and expenses in its
financial statements.

- Effective this quarter, Cantv has changed its 2005 accounting
for pension and postretirement benefit obligations. In December
2004, International Accounting Standard (IAS) 21: The Effects of
Changes in Foreign Exchange Rates (Revised 2003), was issued and
defined pension and postretirement liabilities as monetary
items. The change was effective for periods beginning on or
after January 1, 2005. Prior to this guidance, the Company
treated pension and postretirement benefit obligations as non-
monetary items and used real interest rates in its actuarial
determination of the related liabilities and expenses. When
defined as monetary items, pension and postretirement
obligations must use nominal instead of real rates in such
calculations. This change resulted in higher June year to date
operating expenses which were more than offset by the related
monetary gains. Accordingly, our EBITDA and EBITDA margin
declined while net income slightly improved. This change has no
effect on free cash flow. First quarter 2005 results have been
restated in accordance with this pronouncement. Additional
expense of Bs. 22.5 billion and Bs. 38.1 billion was recorded
for the first and second quarter of
2005; equivalent to an EBITDA margin reduction of 190 basis
points and 318 basis points, respectively. The additional
monetary gain generated by this change was Bs. 27.6 billion and
Bs. 36.1 billion, respectively for first and second quarter
2005. Accordingly, Cantv's net income reflects a net positive of
Bs. 5.1 billion and a net negative Bs. 2.0 billion in the first
and second quarters, respectively.

- In March 2005, the Venezuelan Federation of Public Accountants
published a Revised Statement of Accounting Principle No. 3 (DPC
3): Accounting for Income Taxes, effective for periods beginning
after December 31, 2004. After an initial period of review and
analysis, during the second quarter of 2005 the Company recorded
the resulting deferred tax with retroactive recognition and
restated all prior periods presented. This statement requires
establishment of deferred tax assets and liabilities for the tax
consequences of "temporary differences" between financial
statement carrying amounts and the tax bases of the Company's
existing assets and liabilities. The deferred tax assets and
liabilities were calculated by applying to these temporary
differences the statutory tax rates expected to be in effect
when they will be realized on the Company's income tax filings.
The main sources of temporary differences are book provisions
that are not tax deductible until the event occurs and overhead
which is tax deductible at the time of payment and depreciated
in the financial statements over the useful lives of the related
assets to which it was capitalized. The impacts to our June 30,
2005 balance sheet was an increase in net equity of Bs. 245.7
billion resulting from increases of Bs. 328.1 billion in assets
partially offset by an increase of Bs. 82.4 billion in total
liabilities.

REVENUE ANALYSIS

Operating revenue totaled Bs. 1,197.7 billion during the second
quarter of 2005, a Bs. 119.9 billion (11.1%) increase over
second quarter 2004.

Second quarter 11.1% year-over-year revenue growth was driven by
36.3% and 25.1% increases in mobile and broadband, respectively;
partially offset by a 4.1% decrease in fixed telephony revenue.
As a percentage of total revenue, second quarter mobile revenue
increased from 29.5% in second quarter 2004 to 36.2% in second
quarter 2005.

Customer base growth in our three business segments contributed
to our overall 11.1% revenue growth. The fixed telephony revenue
decline resulted mainly from a decrease in real tariffs. Mobile
revenue growth was driven by higher average revenue per user, a
larger customer base, and increased handset sales. Broadband
revenue increase resulted from a larger customer base.

Fixed

Access Lines:

Total lines in service increased 8.2% on a year-over-year basis
and exceeded 2,971 thousand lines as of June 30, 2005. Over 48
thousand net additions were generated during second quarter
2005, marking the eighth consecutive quarter of subscriber
growth.

Growth in access lines was driven by a 37,228 increase in
residential lines and an 11,144 lines increase in the non-
residential and public telephony segments' lines. Our fixed line
prepaid product continues to drive our fixed line growth with
second quarter net additions of 26,191 lines.

Approximately 44% of the total net additions were generated by
the Company's fixed wireless telephony service, "Cantv Listo",
our primary initiative for capturing customers in underserved
areas. As of June 2005, the fixed wireless service customer base
totaled just over 200 thousand customers, of which 149 thousand
were prepaid.

In line with our strategy, calling centers are beginning to
replace traditional payphones as our primary means of public
telephony service delivery. The percentage of public telephony
lines served by calling centers grew from 21% at the end of
second quarter 2004 to 29% as of June 30, 2005.

Internet subscribers - Dial-up and Broadband:

Internet subscribers grew 50.7% on a year-over-year basis from
282 thousand to 425 thousand, of which broadband (ADSL)
subscribers increased as a percentage of total Internet
subscribers from 36.9% at the end of June 2004 to 50.3% by the
end of June 2005.

Local Service Revenue:

Second quarter 2005 local service revenue of Bs. 231.4 billion
was Bs. 32.0 billion lower (12.1%) compared to the same period
in 2004.

The decline in Local service revenue primarily reflects the
absence of a tariff increase and resulted in a decrease in real
residential tariffs. Failure by CONATEL to approve residential
tariffs increases since 2003 has resulted in 10.9% and 11.6%
second quarter 2005 year-over-year real reductions in the
weighted average usage and monthly recurring charge tariffs,
respectively.

The monthly recurring charges component of local service revenue
dropped 12.0% during second quarter 2005 compared to second
quarter 2004. This decline was driven by 10.9% and 14.3%
weighted average rate reductions in residential and non-
residential postpaid tariffs, respectively. These declines were
partially offset by a 2.6% increase in non-residential postpaid
lines. Almost all of prepaid lines, which represent 24.0% of
fixed lines by June 2005, do not generate monthly recurring
charges.

The 22.1% decrease in installation revenue compared to second
quarter of 2004 was primarily attributable to a decrease in the
number of postpaid customer activations and a real decline in
the average installation price of 9.9%. Activation of fixed
wireless prepaid lines does not generate installation charges.

Local usage revenue decreased 11.3% due to a 10.9% real decrease
in the weighted average tariff and a slight decrease of 0.4% in
unbundled (billed) minutes. The respective 2.5% and 11.8%
decreases in non-residential and public telephony traffic were
partially offset by a 2.2% increase in residential traffic. The
2.2% increase in residential unbundled minutes is attributable
to the 9.6% increase in new lines.

The reduction of 11.8% in public telephony traffic was driven by
a 26.7% decrease in traffic generated in traditional payphones
partially offset by a 15.1% increase in traffic generated in
Telecommunication Centers. This reflects the increasing
importance of Telecommunication Centers in public telephony.

Domestic Long Distance Revenue:

Domestic Long Distance (DLD) revenue decreased Bs. 6.6 billion
(8.0%) as compared to the second quarter of 2004. This decrease
is attributable to a decrease in all long distance revenue
service offerings.

Compared to the same period in 2004 second quarter 2005
residential unbundled DLD revenue decreased 8.6% to Bs. 17.0
billion. The Bs. 1.6 billion decrease in residential domestic
long distance revenue was driven by a 13.9% decrease in weighted
average real rates, partially offset by an increase in unbundled
traffic of 6.3%.

Non-residential domestic long distance revenue decreased Bs. 2.3
billion to Bs. 32.6 billion. This 6.5% decline is attributable
to an 8.4% average tariff decrease, partially offset by a 3.1%
increase in traffic. The increase in traffic was the result of a
higher non-residential customer base.

Public telephony domestic long distance revenue declined Bs. 1.7
billion to Bs. 10.3 billion. The 13.9% decline was attributable
to an 18.3% drop in tariffs partially offset by a 6.0% increase
in traffic. Increased competition prompted the implementation of
promotions and discounts including lowering prices in nominal
terms.

Revenue from our bundled DLD plans "Noches y Fines de Semana
Libres" resulted from a 23.7% decline in the number of
subscribers, driving a 26.6% drop in traffic, partially offset
by higher weighted average real tariffs.

International Long Distance Revenue and net settlements:

Second quarter 2005 International Long Distance (ILD) revenue of
Bs. 24.4 billion (2.0% of total revenue) reflected a 12.9%
decrease over second quarter 2004 results, mainly due to a Bs.
3.0 billion decrease in outgoing revenue and a Bs. 0.6 billion
decline in net settlements revenue.

The Bs. 3.0 billion (9.9%) decrease in ILD outgoing revenue
reflected a 19.6% reduction in weighted average tariffs
partially offset by a 7.0% increase in traffic. The ILD tariffs'
drop is primarily attributable to competitive pressures.

The Bs. 0.6 billion net settlement revenue decrease on a year-
over-year basis resulted from a Bs. 1.5 billion increase from
current period net settlements revenue offset by Bs. 2.1 billion
related to traffic exchanged in excess of the agreed portion
with one operator during the period between August 2004 and May
2005. The Bs. 1.5 billion increase reflects an improved
incoming/outgoing traffic ratio achieved by the Company through
negotiations with key operators involving higher commitments for
inbound traffic. As a result, on a year over year basis,
incoming revenue increased 52.5% while outgoing traffic costs
increased
32.7%.

Interconnection Revenue (Outgoing Fixed to Mobile and Incoming):

Quarterly interconnection revenues grew 10.6% on a year-over-
year basis supported, respectively, by an 11.0% and a 7.7%
increase in outgoing and incoming revenue.

The 12.0% and 8.8% respective increases in Local and DLD fixed
to mobile (F-M) outgoing revenue were driven by 25.4% and 26.8%
traffic gains, respectively, over the same prior year period.
Traffic increases were partially offset by respective real rate
reductions of 12.5% and 15.8% for those revenue lines. Higher
outgoing traffic resulted from a larger mobile market combined
with a new fixed to mobile tariff designed to stimulate usage,
with special emphasis on public telephony.

Incoming revenue increased 7.7% due to a 34.6% increase in real
rates and a 3.2% growth in traffic. Growth in incoming traffic
was generated by an increase in other operators' fixed and
mobile subscriber bases as well as international long distance
calls received by other local operators that terminated in our
network.

Mobile

Mobile revenue increased 36.3% on a year-over-year basis to
Bs.433.4 billion increasing the share of total revenues from
29.5% to 36.2%. Our mobile business continued to be the main
driver of our revenue growth.

The increase in mobile revenue was the result of a larger
customer base, 6.1% higher average revenue per user (ARPU), and
Bs. 40.3 billion (89.9%) increase in equipment sales.

Subscribers:

By the end of second quarter 2005, Movilnet's subscriber base
approached 3.6 million, a 27.6% increase on a year-over-year
basis, and was comprised of 231 thousand (6.4%) postpaid and 3.4
million (93.6%) prepaid customers.

On a sequential basis, the addition of more than 407 thousand
net customers drove a 12.8% increase over the first quarter 2005
subscriber base.

The strong subscriber growth was driven by the results of our
second quarter promotions. One of the most relevant was Mother's
day promotion (Mama Rumbea por 4 Meses) launched in April 2005.
This promotion offered new prepaid customers a Bs. 79,000
handset, four months free of recurring fees, plus a monthly
allowance of 5,000 seconds and 50 SMS messages. New postpaid
customers received a discount of Bs 40,000 on their first bill.
Current customers acquiring new equipment could activate a new
line for free on their old mobile phone and receive bonuses for
both lines. As a result, Movilnet processed a record 380
thousand new activations during May.

Usage and ARPUs:

A total of 879 million minutes of use (outgoing and incoming)
were used during the second quarter 2005, a 27.0% increase when
compared to the second quarter 2004.

The 25.3% increase in the second quarter 2005 outgoing minutes
resulted from a 64.1% increase in bundled traffic combined with
a 4.8% growth in unbundled minutes. Compared to second quarter
2004 volumes, prepaid bundled plans, first introduced in April
2004, drove 85 million additional minutes in second quarter
2005. An additional 50 million minutes were generated by
postpaid bundles.

During the second quarter 2005, higher ARPU was achieved in both
subscriber segments.

Postpaid and prepaid ARPU were Bs. 166,901 and Bs. 37,712,
respectively, compared to Bs. 160,335 and Bs. 34,408 in the
second quarter 2004. Blended ARPU grew 6.1%, reaching Bs. 46,360
compared to the Bs. 43,694 second quarter 2004 average.

During the second quarter of 2005, SMS revenue totaled Bs. 79.1
billion, a 59.8% increase over the second quarter of 2004.
Approximately 1,526 million messages, a 57.8% increase, were
sent by our customers during the quarter. SMS represented 14.3%
of the Company's total second quarter mobile revenue.

Handset sales during second quarter 2005 increased 89.9% on a
year-over-year basis, representing 19.7% of mobile revenue.
Movilnet sold over 704 thousand handsets for Bs. 85.2 billion
during the second quarter 2005.

Broadband

ADSL (ABA) and private circuits revenue totaled Bs. 151.7
billion (12.7% of total revenue) for the quarter, an increase of
Bs. 30.4 billion (25.1%) on a year-over-year basis. The increase
was due to a Bs. 35.4 billion (112.2%) increase in ADSL (ABA)
revenue partially offset by a Bs. 5.0 billion (5.5%) decrease in
private circuits revenue.

ADSL (ABA) lines experienced strong increases over the last 6
quarters, with 103.2% year-over-year growth measured at the end
of the second quarter. As of June 2005, our ADSL (ABA) customer
base totaled almost 212 thousand lines. Our continued investment
and commercial efforts have fuelled the strong ADSL (ABA) sales
momentum, as evidenced by the 25 thousand second quarter net
ADSL (ABA) additions.

EXPENSE AND MARGIN ANALYSIS

Total Operating Expenses

Second quarter 2005 total operating expenses increased Bs. 254.3
billion or 26.4%, to Bs. 1,218.7 billion compared to the second
quarter 2004 and reflects a Bs. 223.3 billion, or 31.4%,
increase in cash operating expenses, combined with a Bs. 31.0
billion, or 12.2%, increase in depreciation and amortization
expenses.

The increase in cash operating expenses was mainly driven by a
Bs. 207.1 billion (40.7%) increase in operations, maintenance,
repairs and administrative expenses resulting from the growth
related increase in costs, second quarter's mobile promotional
efforts described above, change in the accounting treatment of
post retirement benefit obligations expense and an increase in
labor related legal contingencies. These last two drivers of the
increase have no cash impact.

The Bs. 115.4 billion (136.3%) increase in cost of sales over
second quarter 2004 was largely driven by a 382% increase in
cellular handset sales at various levels of subsidies.

The change in the accounting treatment of post retirement
benefit obligations expense described above in the Initial Notes
resulted in Bs. 24.4 billion higher labor benefit costs compared
to second quarter 2004. Second quarter 2004 has not been
restated.

The provision for legal contingencies increased Bs. 57.5 billion
in second quarter 2005 compared to same period a year ago, as a
result of a higher estimation of risks associated with labor
matters.

Also contributing to the increase was a Bs. 25.1 billion
increase in contractor expenses supporting customer service
activities and network and software maintenance.

Interconnection costs increased by Bs. 13.9 billion (12.3%)
driven by higher traffic volumes.

The increase in depreciation and amortization expense resulted
from the additions to fixed assets generated by 2004 and 2005
capital investments.

EBITDA and EBITDA Margin

Second quarter EBITDA decreased 28.1% to Bs. 264.4 billion from
Bs. 367.8 billion reported for the same period in 2004. As a
percentage of revenue, EBITDA margin declined 1,200 basis points
compared to the second quarter of 2004. The percentage decline
resulted from 31.4% increase in cash operating expenses largely
from cellular handsets sales as explained above while revenue
increased at a lower rate of 11.1%. Despite healthy growth in
customers and traffic, total revenue growth continued to be
curbed by the absence of fixed regulated tariff increases.

The Bs. 38.1 billion additional expense recorded for the second
quarter 2005 related to the change in the accounting treatment
of the pension and postretirement benefit obligation, and the
Bs. 57.5 billion higher legal contingency provisions had a
negative impact on EBITDA margin of 318 basis points and 480
basis points, respectively.

Other Income, net and Taxes

Other income, net of Bs. 48.8 billion was recorded during the
second quarter 2005 compared to Bs. 11.3 billion during the
second quarter 2004. Interest income increased by Bs. 8.6
billion or 74.3% due to higher short-term investments. Second
quarter interest expense increased by Bs. 2.9 billion or 59.8%
due to higher average interest rates related to commercial paper
and bolivar denominated debt. The exchange gain decreased by Bs.
1.0 billion in the second quarter of 2005 compared to the same
period in 2004, due to devaluation of the Japanese yen against
the Bolivar.

A Bs. 41.6 billion gain from net monetary position was recorded
in the second quarter of 2005 compared to the Bs. 4.7 billion
loss recorded during the second quarter of 2004. The swing was
attributable to a higher average net monetary liability position
driven mostly by the reclassification of pension and
postretirement benefits liabilities to monetary items. Other
expense of Bs.9.4 billion was recorded in the second quarter of
2005 compared to Other income of Bs. 4.2 billion in the second
quarter of 2004 resulting primarily from bank debit taxes
related to financial transactions.

The income tax provision recorded in the second quarter 2005
increased by Bs. 14.8 billion to Bs. 23.9 billion compared to
the same period a year ago. The current tax provision increased
by Bs. 25.1 billion due to higher taxable income and the
expiration of investment income tax credits on December 31,
2004. The deferred tax benefit increased by Bs. 10.3 billion or
95.7% to Bs. 21.1 billion in the second quarter of 2005 when
compared to Bs. 10.8 billion in the same period of 2004 due to
higher book provisions creating an additional deferred tax
asset. As indicated in the Initial Note, beginning the second
quarter 2005, deferred taxes according to DPC 3 was recorded and
all prior periods presented have been restated.

Net income

Second quarter net income totaled Bs. 4.6 billion compared to
Bs. 114.2 billion in the second quarter of 2004. This was the
result of a Bs. 134.4 decrease from an operating income to an
operating loss, combined with higher taxes.

CASH FLOW ANALYSIS

Free cash flow for the six-month period ended June 30, 2005
totaled Bs. 368.9 billion, 32.6% lower than the amount reported
in the first half of 2004. This Bs. 178.5 billion year-over-year
reduction in FCF was driven by a Bs. 98.4 billion decrease in
cash earnings (net income or loss adjusted for non cash items),
a Bs. 162.6 billion increase in capital expenditures, partially
offset by a Bs. 82.5 billion increase in the net balance of
current and non-current assets and liabilities.

June 2005 year to date net cash used in financing activities
totaled Bs. 323.2 billion and primarily reflected the payment of
Bs. 326.3 billion in dividends.

The Company's net cash position totaled Bs. 794.5 billion as of
June 30, 2005, compared to Bs. 788.7 billion as of December 31,
2004.

Capital Expenditures

Capital and software expenditures for the six-month period ended
June 30, 2005 totaled Bs. 338.7 billion, a Bs. 162.6 billion
(92.3%) increase over the same period of 2004. 2005 capital
expenditures continue to focus on: i) the expansion of our CDMA-
1X network footprint to support projected demand in mobile and
fixed wireless services; ii) the deployment of backbone and data
networks to sustain the growth in our ABA (ADSL) and other data
product lines; and iii) the integration and transformation of
the Company's information systems. In addition, the Company is
deploying Evolution Data Optimized (EVDO) technology for
wireless broadband services and has initiated the substitution
of analog switches with multi-service access nodes to support
service enhancements and increase operating efficiency.

Debt

During the six-month period ended 2005, Cantv's debt payments
totaled Bs. 71.8 billion, a Bs. 154.0 billion decrease when
compared to same period in 2004. 2005 payments included a Bs.
15.5 billion (US$7.2 million) on International Finance
Corporation (IFC) loans, a Bs. 10.0 billion (¥541.0 million) to
Japan's Eximbank and Bs. 46.3 billion of commercial paper and
local banks loans. During the first half of 2004, payments of
Bs. 225.8 billion included Bs. 200.8 billion (US$100 million)
for Yankee Bonds, Bs. 14.4 billion (US$7.2 million) for the IFC
loans and Bs. 10.3 billion (¥541.0 million) to the Japans'
Eximbank and Bs. 0.3 billion for local loans.

As of June 30, 2005, debt balances totaled Bs. 277.6 billion, a
Bs. 5.7 billion decrease compared to debt balances as of June
30, 2004. Since December 2004, the Company has issued commercial
paper, totaling Bs. 71.7 billion as of June 30, 2005.

As a percentage of Equity, total debt was 6.2% as of June 30,
2005 compared to 5.9% as of June 30, 2004.

Cantv, a Venezuelan corporation, is the leading Venezuelan
telecommunications services provider with y 3.0 million fixed
access lines in service, 3.6 million mobile subscribers and 228
thousand dband subscribers as of June 30, 2005. The Company's
principal strategic shareholder is a wholly owned subsidiary of
Verizon Communications Inc. with 28.5% of the capital stock.
Other major shareholders include the Venezuelan Government with
6.6% of the capital stock (Class B Shares), employees, retirees
and employee trusts which own 6.9% (Class C Shares) and
Telefonica de Espana, S.A. with 6.9%. Public shareholders hold
the remaining 51.1% of the capital stock.

To see financial statements: http://bankrupt.com/misc/Cantv.pdf

CONTACT: Cantv Investor Relations
         Phone: +011 58 212 500-1831 (Master)
                +011 58 212 500-1828 (Fax)
         E-mail: invest@Cantv.com.ve

         The Global Consulting Group
         Ms. Lauren Puffer
         Phone: 646 284-9426 (US)
         E-mail: lpuffer@hfgcg.com


CANTV: Supreme Court Decides on Pension Adjustments
---------------------------------------------------
Compania Anonima Nacional Telefonos de Venezuela (CANTV) (NYSE:
VNT) announced that on Tuesday it received the decision of the
Social Chamber of the Supreme Court of Venezuela in the lawsuit
brought by Federacion Nacional de Jubilados y Pensionados de
Telefonos de Venezuela (FETRAJUPTEL) (the Venezuelan National
Telephone Association of Retirees and Pensioners) regarding the
adjustment of pensions of retirees of CANTV. The decision
requires CANTV to index the pensions of all of its retirees.

CANTV is reviewing the economic impact of this decision. A
preliminary evaluation indicates that the decision has a
material impact on CANTV's financial condition, including a
significant impact on its shareholders' equity.

CANTV believes that the decision exceeds the guidelines issued
by the Constitutional Chamber of the Supreme Court issued
January 25, 2005. CANTV is evaluating the legal alternatives it
may have, including the ability to request the review of the
decision by the Constitutional Chamber.

CANTV, a Venezuelan corporation, is the leading Venezuelan
telecommunications services provider with approximately 3.1
million access lines in service, 3.1 million cellular
subscribers and 363 thousand Internet subscribers as of December
31, 2004. The Company's principal strategic shareholder is a
wholly owned subsidiary of Verizon Communications Inc. with
28.5% of the capital stock. Other major shareholders include the
Venezuelan Government with 6.6% of the capital stock (Class B
Shares), employees, retirees and employee trusts which own 7.1%
(Class C Shares) and Telefonica de Espana, S.A. with 6.9%.
Public shareholders hold the remaining 50.9 % of the capital
stock.

CONTACT: Cantv Investor Relations
         Phone: +011 58 212 500-1831 (Master)
                +011 58 212 500-1828 (Fax)
         E-mail: invest@Cantv.com.ve

         The Global Consulting Group
         Ms. Lauren Puffer
         Phone: 646 284-9426 (US)
         E-mail: lpuffer@hfgcg.com


PDVSA: Concludes 2002-2003 Strike Caused $13.25B in Losses
----------------------------------------------------------
State oil company Petroleos de Venezuela S.A. (PDVSA) has
completed an audit of its financial results for 2003 and will
deliver it to the U.S. Securities and Exchange Commission next
month, according to company president, Rafael Ramirez. The
statement, which was audited by the U.S.-based auditing firm
KPMG, shows that PDVSA suffered US$13.25 billion in losses due
to the opposition-engineered industry shutdown, which lasted
from early December 2002 to early February 2003.

The Company saw its profits fall to US$3.3 billion in 2003 from
US$3.5 billion in 2002. Total sales, however, rose to US$46.6
billion in 2003 from US$42.6 billion the previous year. The
Company paid US$7.2 billion in royalties and taxes in 2003.

PDVSA is over a year late in turning over its audited financial
results to the SEC.

Ramirez, who is also Venezuela's Minister of Energy and
Petroleum, attributed the statement's delay to the sabotage
committed by the former oil industry managers, when they deleted
or destroyed contracts, invoices, and orders, forcing those who
remained in the Company to contact clients individually and ask
them to supply these documents.

In addition to this, the data processing software was sabotaged
and the Company had to deal with new auditing norms that were
coincidentally implemented for 2003.

Ramirez said the audited results for 2004 will be ready by the
end of this year, and that the 2005 results should be ready on
time early next year.

Venezuela is the world's No. 5 oil exporter and a key supplier
of fuel to the United States.

CONTACT: Petroleos de Venezuela S.A.
         Edificio Petroleos de Venezuela
         Avenida Libertador, La Campina, Apartado 169
         Caracas, 1010-A, Venezuela
         Phone: +58-212-708-4111
         Fax: +58-212-708-4661
         Web site: http://www.pdvsa.com.ve


PDVSA: To Halt Leaded Gasoline Production Next Month
----------------------------------------------------
PDVSA will cease production of leaded gasoline in August,
Business News Americas reports, citing PDVSA deputy president
for refining Alejandro Granado.

"By the end of August we Venezuelans will be able to say we are
lead-free at a national level in fuels distribution," Mr.
Granado said, adding, "This is the definitive elimination of
lead in gasoline."

PDVSA said it is working on ways to come up with sufficient
additives for the increased volume of unleaded gasoline it will
have to manufacture.

The first shipment of 25,000 cubic meters of ethanol, a key
element in replacing lead, is en route from Brazil, while the
Company said that a plan is underway to plant 300,000ha of
sugarcane to make ethanol locally.

Venezuela already produces about 750,000 tonnes a year of
ethanol from natural gas.


PDVSA: Unit Continues Shutdown Until Late August
------------------------------------------------
PDVSA's 77,000-barrel-a-day Cardon catalytic cracking unit will
remain shut down until late August for maintenance, Dow Jones
Newswires reports, citing Alejandro Granado, head of refining at
PDVSA.

The unit was originally scheduled to undergo maintenance in
October. However, an incident last week that caused the unit to
shut down prompted PDVSA to move forward the scheduled
maintenance work.

"We moved forward turnaround that we had planned for October,"
Mr. Granado said, without going into details.

Cardon processes about 300,000 b/d of crude into refined
products.



                            ***********


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

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

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