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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, February 2, 2001, Vol. 2, Issue 24

                           Headlines



B R A Z I L

CAEMI: CVRD Offers To Pay More Than $300M For Ore Miner
CAEMI: Anglo American Out Of Dispute For Control
CELPE: Guaraniana Concludes Capital Restructuring
COPENE: Dow Chemical Unlikely To Participate In Tender
ELETROPAULO/EPTE: BNDES Authorized To Sell Remaining Shares
WHIRLPOOL CORPORATION: Announces Global Restructuring Phase One

    
M E X I C O

BANCRECER: Top Exec Meeting Deutsche Bank Representatives
CHRYSLER: Senior Workers Likely To Get Dismissed First
CINTRA: Goldman Sachs Not In The Running For Cintra Sale
MINERA AUTLAN: Fails To Pay $74M Debt


N I C A R A G U A

ENITEL: To Activate 20,000 Lines This Year


V E N E Z U E L A

GRUPO EDC: Registers Loss Of $111 Million In 2000


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B R A Z I L
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CAEMI: CVRD Offers To Pay More Than $300M For Ore Miner
-------------------------------------------------------
Companhia Vale do Rio Doce (CVRD) offered more than $300 million
for 60 percent of voting shares in Caemi or about 20 percent of
the ore miner, Bloomberg reported Wednesday. CVRD is reportedly
aiming either to outbid BHP for the equity position or team with
the Australian miner and jointly control Caemi. This story
contradicts reports earlier this week stating that BHP offered
more than $300 million for Caemi's shares, beating out CVRD,
after the bidding closed on Jan. 16.

Acquisition of Caemi would give BHP or CVRD an extra 8 percent
control of world iron ore exports at a time when prices are
expected to rise. The equity sale depends on consent from
Japanese steel company Mitsui & Co., which owns 40 percent of
Caemi's voting shares and has pre-emptive rights to buy the rest.


CAEMI: Anglo American Out Of Dispute For Control
----------------------------------------------------------
Anglo American is probably out of the competition for the
controlling stake in mining company Caemi, Gazeta Mercantil said
Wednesday. The South African mining company's proposal fell short
of the US$300+ already offered by Companhia Vale do Rio Doce
(CVRD). Additionally, Australian BHP, which reportedly also
offered more than $300 million, trumped Anglo's bid. Anglo
American doesn't intend to increase its bid.


CELPE: Guaraniana Concludes Capital Restructuring
-------------------------------------------------
Guaraniana, which acquired Companhia Energetica de Pernambuco
(Celpe) in a tender early 2000, concluded its capital
restructuring, reverting losses of R$453 million, said Gazeta
Mercantil Wednesday. The company, which also controls Cosern and
Coelbam, increased capital to R$1.9 billion with the acquisition
of Celpe, reaching R$4.2 billion. Guaraniana is planning to
invest approximately R$600 million in distribution and services
this year.


COPENE: Dow Chemical Unlikely To Participate In Tender
------------------------------------------------------
U.S.-based Dow Chemical may withdraw its participation from the
tender process of Copene's holdings in Norquisa, a source close
to the situation revealed in a Gazeta Mercantil report released
Wednesday. According to the report, Dow was influenced by one of
the consultants for the group to change its position. Instead,
the company will prioritize its merger with Union Carbide. The
source also said that the company plans to strengthen its
position in the domestic market and develop projects with
partners like BASF for the production of styrene.  


ELETROPAULO/EPTE: BNDES Authorized To Sell Remaining Shares
-----------------------------------------------------------
The federal government gave Brazil's state development bank BNDES
the go ahead signal to sell its remaining positions in
Eletropaulo Metropolitana and EPTE the first half of this year. A
BNDES source also told BNamericas.com Wednesday that the
government still has a 7.97-percent stake in electricity
distributor Eletropaulo and a 13.84 percent stake in transmission
company EPTE.

"This week we will start work on the sale model for the shares,
which will certainly be by auction. We do not have a definite
date because we have to analyze the market and see when is a good
time to sell, but the intention is to divest and we believe the
operation will go ahead in 1H01," the source added.  

U.S.-based AES and France's EDF control Eletropaulo via Rio de
Janeiro distributor Light. However, AES will come out with
control of the company once it untangles a number of stakes that
it owns together with EDF. EPTE, on the other hand, is controlled
by the state of Sao Paulo. Eletropaulo is estimated at R$381
million, while EPTE at R$91 million.


WHIRLPOOL CORPORATION: Announces Global Restructuring Phase One
---------------------------------------------------------------
Whirlpool Corporation (NYSE:WHR) today announced the specific
details of the first phase of its worldwide restructuring plan,
which was discussed in its earnings release last week.

The plan is designed to enhance Whirlpool's competitiveness and
performance, as well as reinforce its capacity to invest in its
brand building strategies.
As previously announced, the first phase of the restructuring
includes the elimination of more than 2,000 positions worldwide.

In Latin America, the company plans to close its refrigerator
manufacturing facility in Sao Bernardo, Brazil, resulting in the
elimination of about 1,000 positions. The company plans to
consolidate production of refrigerators in Brazil at its
Joinville, Brazil, manufacturing facility.

In Europe, the company plans to optimize production capacity for
component operations and use targeted reductions in force
elsewhere in the region to reduce its headcount by about 250
positions.

In Asia, about 400 positions will be eliminated through the sale
of facilities and the outsourcing of non-core operations in both
India and China.

In North America, about 300 positions have been eliminated
through voluntary retirement and targeted reductions in force.
Another 100 positions will be eliminated, primarily through the
outsourcing of Whirlpool's spare-parts packaging operations.

As previously announced, the company expects that this phase of
the restructuring will result in a first quarter charge of
approximately $75 million and will produce savings of about $35
million in 2001, increasing to about $50 million on an annualized
basis.

The restructuring, which will be implemented in phases on a
quarter-by-quarter basis, is expected to be completed within the
next 12 to 18 months. In total, the restructuring plan is
expected to result in pre-tax charges of between $300 million and
$350 million and an annualized savings of between $225 million
and $250 million. The plan is expected to eliminate up to 6,000
positions worldwide.

Whirlpool Corporation is the world's leading manufacturer and
marketer of major home appliances. Headquartered in Benton
Harbor, the company manufactures in 13 countries and markets
products under 11 major brand names in more than 170 countries.
Additional information about the company can be found on the
Internet at www.WhirlpoolCorp.com.


    
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M E X I C O
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BANCRECER: Top Exec Meeting Deutsche Bank Representatives
---------------------------------------------------------
Bancrecer top executive Carlos Septien is scheduled to be in New
York this week to meet with representatives of Deutsche Bank,
said Reforma/Infolatina Wednesday. Deutsche Bank is handling the
sale of government-intervened Bancrecer for Mexican bank bailout
agency IPAB. Companies angling for the control of Bancrecer
include Mexico's Grupo Financiero Banorte, Citibank Mexico, U.K.-
owned Hongkong Shanghai Bank (HSBC) and Canada's Scotiabank.
Deutsche Bank will be presenting IPAB officials the detailed
arrangements for the sale process of Bancrecer in February.


CHRYSLER: Senior Workers Likely To Get Dismissed First
------------------------------------------------------
Although staff-reduction plans at Mexican operations have not
been finalized yet, U.S.-based automaker Chrysler will begin
firing workers who are close to retirement age, a DaimlerChrysler
Mexico representative revealed in a Reforma/Infolatina report
released Wednesday. Younger workers will then be offered the
chance to accept voluntary redundancy packages. Afterwards,
management will carefully and fairly select for dismissal workers
who do not wish to leave the automaker's employ. Currently, the
total workforce at Chrysler's Mexican operations stands at 11,200
employees.


CINTRA: Goldman Sachs Not In The Running For Cintra Sale
--------------------------------------------------------
Goldman Sachs is not one of the firms being considered by Mexican
bank bailout agency IPAB to handle its planned breakup and sale
of government-owned airline holding company Cintra. This
information comes in stark contrast to reports published earlier
this week. A report in Reforma/Infolatina released Wednesday says
the five firms currently under consideration for the job are
Santander, BNP-Paribas, J.P. Morgan, Salomon Smith Barney and UBS
Warburg. The fact that UBS Warburg has hired Jorge Silberstein
does not raise any serious conflict of interest, sources familiar
to the situation said. Silberstein managed the privatization of
Mexico's railroads, ports, airports and satellite communications
at the time when former-President Ernesto Zedillo was still in
office.


MINERA AUTLAN: Fails To Pay $74M Debt
-------------------------------------
Manganese-miner Companhia Minera Autlan said it defaulted on its
$74-million debt and is currently working out a restructuring
plan with creditors, Bloomberg reported Wednesday. The company
wouldn't pay $7 million of commercial paper due this week, deputy
director of strategic planning Hector Cacho said, adding that the
default on the commercial paper would affect loans the company
has with Mexican and foreign banks.

"We have a lot of bank debt coming due in the short-term and the
cash flow generation of the company isn't enough to pay it all,"
said Cacho.

Autlan has about $60 million of debt maturing this year and
expects operating cash flow to be about $18 million or less. The
company had operating cash flow, earnings before interest, taxes,
amortizations and accounting for depreciation [EBITDA], of about
$18 million in 2000, Cacho said.



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

ENITEL: To Activate 20,000 Lines This Year
------------------------------------------
Enitel spokesperson Norman Talaver revealed that the state-owned
telecom operator is planning to activate 20,000 lines this year
by connecting idle technical resources, BNamericas.com reported
Wednesday.

"There are some switching centers with extra capacity available
but not enough network infrastructure, while in other areas there
are switches that don't have capacity for the lines connected to
them. So we need to try to unify those resources," Talaver said.

Talaver refused to comment on the possibility of launching a new
privatization process following the collapse of last September's
auction of 40 percent stake in the company. The previous auction
failed when France Telecom's US$63-million bid fell short of the
US$79 million minimum and Mexico's Avantel withdrew from the
process.



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

GRUPO EDC: Registers Loss Of $111 Million In 2000
-------------------------------------------------
Grupo EDC, comprised of CA Electricidad de Caracas and
Corporacion EDC, reported a loss of 77.9 billion bolivars ($111.4
million) or 22.83 bolivars a share in 2000, according to a
Bloomberg report published Wednesday. The company said that
losses surged during 2000 because of severance payments to
employees.

"They've probably now taken most of the charge for the early
retirement plan," said Alex Dalmady, managing director of
research firm InvestAnalysis. "I see no reason why they won't
make money in 2001."

AES Corp., the largest U.S. power plant developer, took control
of the Venezuelan company in June in a $1.6 billion hostile
takeover.




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 American is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ,
and Beard Group, Inc., Washington, DC. John D. Resnick, Edem
Psamathe P. Alfeche and Janice Mendoza, Editors.

Copyright 2001.  All rights reserved.  ISSN 1529-2746.

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