/raid1/www/Hosts/bankrupt/TCRLA_Public/010216.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

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

         Friday, February 16, 2001, Vol. 2, Issue 34

                           Headlines



A N T I G U A  &  B A R B U D A

LIAT LTD: Might Be Asked To Consolidate Flights


B R A Z I L

CVRD: Commences E-commerce Operation For Agribusiness Sector
FURNAS: Wins 30-year Transmission Line Government License
GRUPO INDEPENDENCIA: Phased Out From Brazilian Meat Market
VESPER: To Launch Cost-Cutting Plan To Break Even By Year-End


C H I L E

ENTEL: Commission Approval To Affect Residential Clients


E C U A D O R

CEMENTOS CHIMBORAZO: Vistech To Complete Assets Evaluation
EMELEC: Assets Soon To Be Evaluated


M E X I C O

ASUR: Reports Year 2000 Results
CONFIA BANK: To Conclude Integration Process By June Or July
GRUPO DESC: To Reduce Workforce By 10 Percent
GRUPO DINA: Will Not Make Semi-Annual Interest Payment On Bonds


U R U G U A Y

CAJA OBRERA: Sets March 22 As Deadline For Presentation Of Bids


V E N E Z U E L A

MAVESA, S.A.: Announces CNV Resolution


     - - - - - - - - - -


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A N T I G U A  &  B A R B U D A
===============================

LIAT LTD: Might Be Asked To Consolidate Flights
------------------------------------------------
State-run Government Information Services (GIS) said it might ask
regional carriers LIAT Ltd. and Caribbean Star to consolidate
their flights and possibly have charters on a wait and see basis,
according to a Caribbean News Agency report Wednesday. The
scenario is likely to occur if Air Traffic Controllers (ATCs) go
on another apparent sick-out, an unnamed airline executive
explained.

LIAT Ltd CEO Garry Cullen, last week asked for a quick
formulation of a regional aviation policy for the 15-nation
Caribbean Community and Common Market (CARICOM) to streamline the
industry. The call was made against in light of the establishment
of numerous regional and sub-regional carriers in recent years.

"What is also needed is a sound aviation policy that enjoys the
support of all CARICOM governments which is designed to foster
the development of strong Caribbean international and regional
air transport system," Cullen said.



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

CVRD: Commences E-commerce Operation For Agribusiness Sector
------------------------------------------------------------
Brazilian mining group Cia Vale do Rio Doce (CVRD) announced the
launch of www.solostrata.com.br, signaling the start of its e-
commerce operation for its agribusiness sector, South American
Business Information reported Wednesday. Valepontocom, its
Internet arm, launched the portal which commands some R$30
million in investments. Solostrata is supported by 4 facilities
at Mid West Region and 526 farmers. Last year, CVRD reportedly
transported 2.8 million tons of soybeans.

A recent report in the TCR-LA suggested that the mining group
agreed to an investment plan of $1.1 billion for this year.


FURNAS: Wins 30-year Transmission Line Government License
---------------------------------------------------------
The federal electric holding company Furnas was awarded a 30-year
government license to explore energy transmission services of
group A power line stretch, Brazil Financial Wire reported
Wednesday. The group A stretch is a transmission line which links
the southeastern states of Paran  and Sao Paulo. The company, the
sole bidder to build and provide group A services, reportedly
offered a maximum annual rate of R$81.531 million for the
transmission of energy. According to the power sector regulating
agency Aneel, the cost to construct the transmission line is
estimated at R$412 million.


GRUPO INDEPENDENCIA: Phased Out From Brazilian Meat Market
----------------------------------------------------------
Grupo Independencia slaughterhouse, one of the major Brazilian
meat exporters, has been phased out, according to a South
American Business Information report Wednesday. The drastic move
was brought about by the impact of mad cow disease and the
Canadian boycott of Brazilian meat. Last year, meat exports
represented US$118 million to Grupo Independencia. Last month
exports totaled US$9.5 million.

Sindicato das Industrias de Frios, Carnes e Derivados de Mato
Grosso do Sul (Sicadems) anticipates the Brazilian export market
to recover in the next 90 days.


VESPER: To Launch Cost-Cutting Plan To Break Even By Year-End
-------------------------------------------------------------
In an attempt to break even by the end of the year, Brazilian
phone company Vesper said it is embarking on a cost-cutting plan
to stem the flow of red ink, Reuters reported Wednesday. Part of
the plan is to dismiss workers and scale down operations.
Although the company refused to confirm the exact number of
employees to be laid off, unions believed that 1,200 or 30
percent of the total number of workforce would lose their jobs.

The firm also said it wanted to limit investment to $1 billion
over the next two years and target middle to high income areas
while reducing operations in lower income areas. Vesper plans to  
focus on voice and data transmission for small and medium-sized
companies.

"We do not need to get a large market share to be a success,"
Vesper President and former VeloCom finance director Barry Rowan.
"Vesper is not a large scale company."

Vesper is owned by Bell Canada International Inc. (BCI) and
Denver-based VeloCom Inc. According to Rowan, VeloCom continued
to negotiate buying BCI's 34.4 percent stake in Vesper, but added
that the price could well be below the $875 million negotiated in
September. BCI, the international mobile communications arm of
BCE Inc., said earlier this month that it was renegotiating the
sale after VeloCom had failed to get financing on time.



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

ENTEL: Commission Approval To Affect Residential Clients
----------------------------------------------------------
Should the antimonopolies commission allow Telefonica CTC Chile
to define its prices freely, residential clients would be
affected, warned Richard Buchi, Entel's manager, in a South
American Business Information Wednesday report. He believes
Telefonica would probably reduce its prices in the more corporate  
segments and increase them for residential customers. According
to Mr. Buchi, to strengthen competition, Telefonica CTC Chile's
share of the cable telephone market should be less than 50
percent, against more than its current 80 percent.



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

CEMENTOS CHIMBORAZO: Vistech To Complete Assets Evaluation
----------------------------------------------------------
Vistech Corp., which the Ecuadorian development bank Banco
Nacional de Fomento (BNF) hired to evaluate the assets of cement
company Cementos Chimborazo, said it is completing its task,
South American Business Information reported Wednesday. The
assets evaluation is done in preparation for the company's
upcoming privatization when BNF sells its 95.21-percent stake.
Vistech, reportedly, will get a percent of the sale as payment
for its advisory service.


EMELEC: Assets Soon To Be Evaluated
-----------------------------------
Banco Bilbao Viscaya and PricewaterhouseCoopers are expected to
sign a contract with electric power council Conelec to evaluate
the assets of the electric utility Empresa Electrica del Ecuador
(Emelec), a report in a South American Business Information
suggested Wednesday. Both will also model the privatization of
the assets. Conelec, which manages Emelec, announced it would
begin auditing electric companies in April as the first step
toward opening the market process.



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

ASUR: Reports Year 2000 Results
-------------------------------
Grupo Aeroportuario del Sureste, S.A. de C.V., operator of nine
airports in the southeastern region of Mexico, posted year 2000
results in a South American Business Information report
Wednesday.

* Revenues - 1.159 billion pesos, a 20-percent increase from the
previous year;

* Net Profits - 209.58 million pesos, a 30.16-percent increase
from the previous year;

* Aeronautical services returns rose 19.455 percent while non-
aeronautical activities returns rose 22.68 percent.

The charter flights terminal in Cancun was a good source of
income as were the expanded car-parking services. Soon Asur will
award the "duty-free shops" concession for Merida, Cozumel and
Cancun airports.


CONFIA BANK: To Conclude Integration Process By June Or July
------------------------------------------------------------
When U.S.-owned Grupo Financiero Citibank took control of
government-intervened Mexican bank Confia in August 1997 in
exchange for $250 million, it also assumed control of a
"technological nightmare," as referred to by Citibank Mexico head
of Retail Banking Rodolfo E. Maldonado in a Reforma/Infolatina
report released Wednesday. This "technological nightmare"
includes 25 dilapidated computer services centers, an obsolete
telecommunications system and a complete absence of preparation
for Y2K problems.

"It was a technological nightmare that we first had to address in
order to get through year 2000 and, later, became the focus of
the integration of our overall systems in four stages," Maldonado
said. According to him, the integration process launched in
September 2000 could be completed by June or July.

Confia, which authorities intervened after it got mixed up in a
fraud scandal, is located in the northern city of Monterrey. It
had 281 branches in Mexico when Citibank acquired it.


GRUPO DESC: To Reduce Workforce By 10 Percent
---------------------------------------------
Grupo Desc, Mexican industrial conglomerate, revealed in a
Reforma/Infolatina report released Wednesday plans to reduce its
total workforce by 10 percent in response to a slowdown in the
U.S. auto industry. The United States is the principal market for
Desc's autoparts manufacturing division, and autoparts export
sales form a major component of the group's total sales.


GRUPO DINA: Will Not Make Semi-Annual Interest Payment On Bonds
---------------------------------------------------------------
Consorcio G. Grupo Dina, S.A. de C.V. (NYSE: DIN, DIN.L), a
leading Latin American producer of trucks, today announced that
it will not make the scheduled interest payment of U.S. $6.5
million on its 8% convertible subordinated debentures due August
8, 2004.

This interest payment was originally due on January 16, 2001, and
had a grace period of 30 days before constituting a default under
the terms of the indenture governing the bonds

The Chief Executive Officer of Grupo Dina, Mr. Gamaliel Garcia,
announced that the company will soon call for a meeting with the
holders of the debentures in order to start negotiations to
restructure the debt. At the same time, Mr. Garcia advised that
at an ordinary meeting of shareholders held today a new Board of
Directors was appointed effective immediately with the following
members:

    Directors:           Jose Gamaliel Garcia Cortes
                         Martin Melendez Romero
                         Gabriel Garcia Cortes

    Statutory Auditor:   Gustavo Gabriel Llamas Monjardin

    Secretary:           Mauricio German Mendoza Silva

Finally, Mr. Garcia indicated that the extraordinary meeting of
shareholders and the special meeting of series L shareholders
scheduled for today did not occur due to a lack of a quorum. As a
result, the company plans to publish soon a second notice for
such meetings.

Mr. Garcia offered his assurance that Dina will keep the
financial community, the media, its investors, clients and
employees informed of any relevant developments.

The Private Securities Litigation Reform Act of 1995 provides a
"Safe Harbor" for forward-looking statements to encourage
companies to provide prospective investors with information,
provided that such statements are identified as forward-looking
and are accompanied by meaningful cautionary statements
identifying important factors which could cause results to be
materially different from those discussed in the statement.

In discussing the future prospects of the Company, management has
identified factors including, but not restricted to the
following:

*  Economic and industry conditions, including interest rates and
inflation.

*  Conditions in Mexico and Argentina, among the Company's
primary markets, which have experienced significant volatility in
recent years, including devaluation of the peso.

*  The successful implementation of the Company's restructuring
program, and a satisfactory resolution of its financial
difficulties.

*  Competitive and overall industry conditions in its major
markets.

*  Order flow for its products from major customers.

*  Harmonious relationships with its workers and labor unions
that represent them.

*  The outcome of a lawsuit against Western Star for breach of
contract. There is no assurance that the eventual outcome will be
beneficial to the company.



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

CAJA OBRERA: Sets March 22 As Deadline For Presentation Of Bids
---------------------------------------------------------------
Deadline for the presentation of bids by companies interested in  
acquiring 99.83 percent of Uruguayan state bank Banco Caja Obrera
is set on March 22. This was announced by Caja Obrera chairman
Eduardo Rocca Couture in a Business News Americas report
published Wednesday. According to Couture, prospective bidders
concluded due diligence processes late last November and have
since asked the Central Bank on several occasions for additional
time to prepare bids.

Development agency Corporacion Nacional para el Desarrollo owns
80 percent of Caja Obrera, while state-run Banco de la Republica
de Uruguay holds 19.83 percent. Although the Central Bank is
handling the sale process, both shareholders will decide the
auction winner.



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

MAVESA, S.A.: Announces CNV Resolution
--------------------------------------
The Venezuelan National Securities Commission ("Comision Nacional
de Valores") (CNV) yesterday issued an official resolution
authorizing the proposed tender offer by Primor Inversiones,
S.A., a wholly owned subsidiary of Primor Alimentos C.A. (a unit
of Empresas Polar), to purchase all of the outstanding shares and
ADSs of Mavesa, S.A. (NYSE: MAV) through simultaneous tender
offers in the United States and Venezuela, subject to certain
modifications. Mavesa and its counsel are, together with Primor
and its counsel, working with the CNV and the United States
Securities and Exchange Commission to implement the modifications
to the offers requested by the CNV.

The minimum duration of the tender offers is 21 business days
from the date that the offer receives unqualified approval from
the CNV. In the event that the approval is granted, the start and
termination of the period will be publicly announced.

Holders of Mavesa's shares and ADSs are advised to read Mavesa's
solicitation/recommendation statement in connection with the
offers when it becomes available because it will contain
important information and instructions relating to the offer.
Holders of Mavesa's shares and ADSs may obtain Mavesa's
solicitation/recommendation statement and other documents when
they are filed with the United States Securities and Exchange
Commission from the SEC's website at www.sec.gov or from Mavesa.




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.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are $25 each.  For subscription information,
contact Christopher Beard at 301/951-6400.


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