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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

            Monday, March 5, 2001, Vol. 2, Issue 44

                           Headlines



A R G E N T I N A

EL SITIO: Reports 2000 Results, Revenues Up But Loss Widens


B R A Z I L

BANESPA: Supreme Rules Bank Can't Keep Government Court Accounts
CRT: Telefonica Board Of Directors Authorizes Public Offer
CSN: To Pay Dividends To Shareholders
ELETROPAULO: To Focus On Energy Distribution


C H I L E

BANCO DE CHILE: Quinenco Takes 51-Percent Control For $64M


M E X I C O

ASUR: Five New Directors Shareholders Elected to Board
BANCRECER: Foreign Institutions Monitoring Sale Preparations
CHRYSLER GROUP: Announces Feb. Sales, March Production Schedule
CINTRA: Sale To Spur Growth In Mexican Airline Industry
GRUPO DESC: To Move Into New Areas Of Businesses
GRUPO DINA: Strike Deadline Postponed Again But No Agreement
HYLSAMEX: To Refinance $515M Debt With Creditor Banks
MINERA AUTLAN: BOD Approves Creditors' Restructuring Proposal


P E R U

ISCAYCRUZ: Glencore Awaits Announcement On Final Price


     - - - - - - - - - -


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A R G E N T I N A
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EL SITIO: Reports 2000 Results, Revenues Up But Loss Widens
-----------------------------------------------------------
El Sitio, Inc. (Nasdaq: LCTO), a leading Internet media company
targeting Spanish and Portuguese speakers in Latin America and
the United States, today reported total net revenues of $35.5
million for the year ended December 31, 2000. The revenue figure
compares to net revenues of $6.9 million for the year ended
December 31, 1999. Net revenues for 2000 were primarily driven by
advertising revenue growth from El Sitio's Internet network.

For the fourth quarter of 2000, El Sitio reported total net
revenues of $11.8 million, up 13% from $10.5 million in the third
quarter of 2000, and compared to $5.3 million for the fourth
quarter of 1999.

"The past year exhibited very solid revenue growth as El Sitio
established itself as a leading brand for advertisers seeking to
reach Spanish and Portuguese speakers via the Internet," stated
Roby Cibrian-Campoy, chief executive officer of El Sitio. "El
Sitio's developed network of country sites in Latin America
should position us well as we prepare for our planned integration
with Claxson Interactive Group. Through this merger, we will be
focused on making El Sitio an active participant in media
convergence in Latin America."

As announced on October 30, 2000, El Sitio has agreed to merge
with Ibero American Media Partners (IAMP), a joint venture
between the Cisneros Group of Companies and Hicks, Muse, Tate &
Furst Incorporated, a transaction which will result in the
creation of Claxson Interactive Group. The merger is expected to
close in April 2001.

Audience Update

Audience traffic for the fourth quarter of 2000 indicated
continued development of El Sitio's user community. Total page
views in the fourth quarter of 2000 were 686 million, which
represented an all-time high for El Sitio. Unique users totaled
4.2 million. Registered users at December 31, 2000 totaled
approximately 1.9 million, with a record 388,000 new registered
users added during the fourth quarter. For the third quarter of
2000, El Sitio added approximately 350,000 new registered users,
with registered users having reached nearly 1.6 million at
September 30, 2000. El Sitio estimates that total page views
exceeded 600 million in the third quarter of 2000. (Unique user
and page view data for the fourth quarter of 2000 have been
audited by Engage I/Pro. As previously announced, comparable
audited data was not available for the third quarter of 2000.)

Financial Highlights

El Sitio's financial performance for 2000 as a whole and the
fourth quarter of 2000 was primarily driven by the continued
growth in net advertising revenue, which totaled $21.4 million
for the year and $7.4 million for the fourth quarter. Net
advertising revenues for the fourth quarter of 2000 increased
17%, from $6.3 million in the third quarter of the year. Net
advertising revenues had totaled $2.7 million for the fourth
quarter of 1999.

Net connectivity services revenues totaled approximately $9.0
million for 2000, as compared with $2.7 million in 1999. For the
2000 fourth quarter, net connectivity service revenues were $1.8
million as compared to $2.1 million in the third quarter of 2000.
The quarterly decrease in these revenues primarily reflected a
decline in average subscriber fees in Argentina, Brazil and
Colombia, the countries in which El Sitio offers connectivity
services. El Sitio has previously announced its intention to sell
its connectivity services business.

Net e-commerce revenues accounted for the balance of El Sitio's
revenues and were attributable to DeCompras.com, which was
acquired in May 2000. Net e-commerce revenues totaled $2.6
million in the fourth quarter of 2000, as compared with $2.1
million in the third quarter of 2000. Net e-commerce revenues
amounted to $5.1 million for the full year 2000.

El Sitio's results for the fourth quarter and full year 2000
include merger and restructuring expenses of $5.5 million, which
include charges resulting from the previously disclosed
organizational changes made in preparation for the Claxson
transaction. Excluding these merger and restructuring charges,
EBITDA* loss for the fourth quarter of 2000 was $18.8 million,
compared to $17.7 million for the same period in 1999 and $15.9
million for the third quarter of 2000. Total EBITDA loss for the
full year 2000 was $65.6 million, excluding these merger and
restructuring charges, as compared with $30.2 million for 1999.

El Sitio's net loss for the fourth quarter of 2000 was $29.0
million, or $0.66 per share, as compared with $22.4 million, or
$1.17 per share, in the corresponding period in 1999. El Sitio's
net loss for 2000 totaled $93.3 million, or $2.20 per share,
compared to a net loss of $36.3 million, or $2.66 per share in
1999. Excluding the aforementioned merger and restructuring
charges, net loss per share for the 2000 fourth quarter and full
year totaled $0.53 and $2.07, respectively.

As of December 31, 2000, El Sitio had a balance of cash, cash
equivalents and investments of $62.7 million and no long-term
debt.

* EBITDA is defined as operating income before depreciation and
amortization and share-based compensation expenses.  EBITDA is
not a measure of performance calculated in accordance with US
GAAP, this measure may not be comparable to similarly titled
measures employed by other companies.



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

BANESPA: Supreme Rules Bank Can't Keep Government Court Accounts
----------------------------------------------------------------
Banco Santander Central Hispano's (BSCH) Sao Paulo bank Banespa
can no longer hold on to the Sao Paulo state government's court
accounts, Gazeta Mercantil said Thursday. The final ruling issued
by the Brazilian Supreme Justice Court (STJ) rejected the bank's
appeal to retain responsibility for the accounts.

Banespa, before it was privatized in November of last year, was
responsible for the accounts - holding R$2.8 billion. Shortly
after it was sold, the Sao Paulo government transferred them to
rival Sao Paulo bank Nossa Caixa. The value of the accounts
represents 40 percent of what Santander paid for Banespa. BSCH
acquired Banespa in an all-cash deal worth about $1.2 billion.


CRT: Telefonica Board Of Directors Authorizes Public Offer
----------------------------------------------------------
Telefonica Moviles' Board of Directors authorized a public offer
for the acquisition of a 54.32-percent stake in Celular CRT
Participacoes' capital stock, South American Business Information
said Thursday.

"The offer is aimed at reducing costs and converting it (CRT)
into a more competitive company," Moviles president Luiz Lada
said, adding, "We want Brazilians to become shareholders of
Telefonica Moviles." Telefonica Moviles, the wireless arm of
Spanish telephone group Telefonica, will pay a premium of 40
percent over the current share price. Presently, it owns 45.68
percent of CRT, including 75 percent of the voting shares.

CRT Celular shares soared 19.3 percent on Thursday following news
that its parent company was planning to bid for the CRT shares it
does not already own. CRT preferred shares closed at 970 reais
($485), rising 157 reais in just one day of trading on a hefty
turnover of 71.2 million reais.


CSN: To Pay Dividends To Shareholders
-------------------------------------
Companhia Siderurgica Nacional (CSN) said it would pay
shareholders dividends of 1.813 billion reals (25.28 reals per
share), 400 percent more than 331.9 million reals distributed in
1999, South American Business Information reported Thursday. The
sale of its holdings in Light Servicos de Eletricidade SA and
Valepar SA boosted its net profit last year by 1.175 billion
reals to 1.568 billion reals. Barring the sale of these assets,
CSN's normal profit would have been 393.3 million reals, up from
331.9 million reals in 1999. Specialists believe that the
company's profits will reach 400 million reals in 2001. The
company plans to invest 1.1 billion reals for 2001 in repair of
its third furnace, environmental control and modernization of
galvanizing and rolling mill facilities.


ELETROPAULO: To Focus On Energy Distribution
--------------------------------------------
In an effort to eliminate complications in its internal
restructuring process, the Sao Paulo power utility Eletropaulo
will focus on its core activity of energy distribution, Gazeta
Mercantil reported Thursday. The new strategy is a change from
the previous plans designed by the company, which supplies energy
to 24 municipalities in Greater Sao Paulo.

"The AES group has been considering the strategy for more than a
year, but discussions really got underway in December when (AES)
took over management of the company," said the chairman of
Eletropaulo and AES Corp for Brazil Lu¡s David Travesso.



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C H I L E
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BANCO DE CHILE: Quinenco Takes 51-Percent Control For $64M
----------------------------------------------------------
Chilean financial conglomerate Quinenco announced it has taken
control of 51 percent of Banco de Chile in a transaction
originally valued at around $64 million, according to a Reuters
report Thursday edition. The announcement came after a successful
tender offer to buy shares in the bank's controlling company.

Quinenco already has a stake in Banco de A. Edwards. The market
speculates that it is looking to merge Banco de A. Edwards and
Banco de Chile. As a result, the bank would command about 20
percent of the country's loan market, displacing the country's
present non-government leader, Banco Santigao SA, which holds
approximately 15 percent of the loans.



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

ASUR: Five New Directors Shareholders Elected to Board
-------------------------------------------------------
Grupo Aeroportuario del Sureste, S.A. de C.V.
(NYSE:ASR)(BVM:ASUR)(ASUR), announced that at the Company's
Extraordinary and Ordinary Shareholder Meeting held yesterday in
Mexico City five new external directors representing holders of B
shares were elected to ASUR's Board.

Following today's vote, ASUR's Board of Directors consists of
seven directors. The new directors appointed today were Ricardo
Guajardo Touche, President and CEO, BBAV-Bancomer; Aaron Dychter
Poltolarek, Under-secretary of Transport, Ministry of
Communications and Transport; Francisco Garza Zambrano,
President, Cemex Trading, North America; Martha Miller de
Lombera, Vice President and CEO of North and Central America,
Procter & Gamble, North and Central America; Mark R. Beveridge,
Vice President, Templeton. David Penaloza Sandoval, President,
Grupo Tribasa, and Kjeld Binger, Vice President, Copenhagen
Airports, are the directors representing ASUR's strategic partner
Inversiones Y Tecnicas Aeroportuarias (ITA), holders of BB
shares.

Frantz Guns, CEO of ASUR, commented: "We are pleased to have such
distinguished and respected professionals joining our Board and
look forward to their contribution to our organization."

"These elections," added Mr. Guns, "truly represent minority
shareholders at the highest levels of our organization. This is a
feature of our corporate governance framework that we believe
makes us unique in Latin America and especially in Mexico."

"Additionally," concluded Mr. Guns, "in line with modern
corporate governance philosophy the meeting voted to eliminate
alternate directors."

Finally, shareholders decided that the company's Nominations and
Compensations Committee would consist of three members. The
meeting elected Federico Garcia Mitchell, President, ITA, to the
committee, with the other two members to be elected by the Board.

No date has been set for the next Board meeting.


BANCRECER: Foreign Institutions Monitoring Sale Preparations
------------------------------------------------------------
As Mexican bank bailout agency IPAB continues to prepare
government-intervened Bancrecer for its upcoming sale, several
foreign banks have emerged saying they are closely monitoring the
said preparations. According to a Reforma/Infolatina report
released Thursday, among these foreign banks are Wells Fargo,
Bank of America, ING, Scotiabank and Citibank. IPAB is expected
to release details of the sale process this month and it is not
yet known whether Bancrecer's retail bank and pension fund
manager will be sold separately or as a package. Sources at the
country's fifth-largest bank Banorte, which also expressed
interest in bidding for Bancrecer, said that the latter could
pocket around $350 million from the sale.


CHRYSLER GROUP: Announces Feb. Sales, March Production Schedule
---------------------------------------------------------------
Chrysler Group reported U.S. sales of 201,636 units in February,
a 10 percent decline compared to February 2000, which was an all
time record month. However, this represents a 36 percent jump in
sales compared to January 2001, or an increase of nearly 41,000
units.

Sport Utility Vehicle (SUV) sales of 59,407 units set a new
record for February, rising 14 percent compared to February 2000.
This represents a 5,700 unit, or 20 percent, increase over
January 2001.

Chrysler Town & Country set a new record with sales jumping 32
percent versus the same month last year on sales of 12,739 units.
Total minivan sales of 36,944 vehicles dropped 31 percent
compared to last February, which was the second best sales month
in the history of minivan. However, total minivan sales increased
57 percent, or by 11,491 units, over January 2001.

The all new Chrysler Sebring and Dodge Stratus sedans recorded
their best month since the September 2000 launch on sales of
17,254 units. Total car sales of 59,068 units were up 49 percent,
or by 16,000 units, compared to January 2001, but were down 13
percent compared to February 2000.

Total truck sales of 142,568 dropped 10 percent versus last
year's record, but increased nearly 25,000 units, or by 31
percent, compared to January 2001.

"As February progressed, we gained more and more momentum," said
Dieter Zetsche, Chrysler Group President and CEO. "We are
positively positioned heading into the spring selling season.
Owning one of the youngest product lines in the industry combined
with competitive incentives has energized our dealers and
customers. Our market position will be further bolstered with the
launch of the all new Jeep(R) Liberty in April and the summer
launch of our new Dodge Ram pickup."

Zetsche noted that the combination of all of these factors
resulted in a strong sales month especially when considering last
year was the best February on record. "We anticipate that sales
will continue to move in a positive direction. They have already
moved ahead 36 percent compared to January, and we are seeing
sustained increases in dealer orders."

FIRST QUARTER PRODUCTION

Chrysler Group's First Quarter Production includes the following
plant idlings in March:

    Week of March 5, 2001
      * Bramalea (Ontario) Assembly Plant
      * Newark (Delaware) Assembly Plant

    Week of March 12, 2001
      * Bramalea (Ontario) Assembly Plant


CINTRA: Sale To Spur Growth In Mexican Airline Industry
-------------------------------------------------------
Boeing, the world's biggest aircraft manufacturer, believes that
the imminent sale and break up of state-run Mexican airline
holding company Cintra would certainly spur growth in the
country's airline industry, Reforma/Infolatina reported Thursday.
According to Boeing, Mexico's air transport industry over the
next 20 years will grow at an average annual rate of 6.9 percent
per year, as compared to rates of 5.8 percent in Latin American
and 4 percent worldwide.

Cintra, which corners more than 70 percent of the country's air
transport market was ordered to be broken up and sold by Mexico's
antitrust agency, the Federal Competition Commission (CFC), late
last year.


GRUPO DESC: To Move Into New Areas Of Businesses
------------------------------------------------
Mexican industrial conglomerate Grupo Desc, which already has
interests in the auto, chemicals and food industries and in
commercial real estate, is contemplating the possibility of
ventures. According to an Infolatina report published Thursday,
potential new business sectors include energy, petrochemicals and
telecommunications. Mexican former Energy Minister Luis Tellez is
expected to join Desc in a top-level management capacity soon.

In a related report, Desc is planning to invest a total of $100
million for the current year. Report has it that most of these
investments will be allocated to its autoparts manufacturing
subsidiary, which accounts for 47 percent of the group's 2.4
billion dollars in annual sales.

Grupo Desc recently sold its stake in the Punta Mita Four Seasons
Resort hotel to U.S.-based Strategic Hotel Capital for an amount
of $52 million.


GRUPO DINA: Strike Deadline Postponed Again But No Agreement
-------------------------------------------------------------
Consorcio G. Grupo Dina, S.A. de C.V. ("Dina"), (NYSE: DIN;
DIN.L), a leading Latin American producer of trucks, today
announced a further 15-day extension of the strike deadline
originally scheduled for February 7th at its plant in Sahagun
City, Hidalgo, Mexico. The Mexican Department of Labor has
approved a second extension of the deadline. The strike has been
rescheduled for March 20th.

The Department of Labor stated that the goal of this extension is
to give both parties additional time to reach an agreement
without a strike.

Dina has maintained its position that it is unable to grant a 40%
wage increase, as demanded by the labor union, because of the
company's critical financial condition, precipitated by Western
Star Truck's decision to cancel its contract to purchase 9,000
trucks over a 3-year period.

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. Such
statements must be identified as forward-looking and accompanied
by meaningful cautionary statements identifying factors that
could cause results to materially differ from those discussed in
the statements.

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.

-- Reaching a satisfactory arrangement with the holders of its
defaulted 8% bonds.

-- The ability of the Company to continue operations on a "going
concern" basis.


HYLSAMEX: To Refinance $515M Debt With Creditor Banks
-----------------------------------------------------
Mexican steelmaker Hylsamex SA, struggling against sinking steel
prices and high energy costs, announced it struck a deal with
creditor banks to refinance $515 million in debt, Bloomberg said
Thursday. Refinancing came in two separate pacts between its main
unit, Hylsa SA de CV, and creditors. The first involved extending
maturity of $115 million in short-term debt until Jan. 31, 2002.
The second involved $400 million in three syndicated long-term
debt packages. Banks agreed to wait until Jan. 31, 2002 to enact
certain financial conditions that are part of the loan
agreements.

Hylsamex has $1.35 billion of debt and is struggling to keep up
with payments because of sagging steel prices and rising energy
costs. This year, the company faces about $298 million of
maturing short-term and long-term debt.


MINERA AUTLAN: BOD Approves Creditors' Restructuring Proposal
-------------------------------------------------------------
The first draft of a proposal to restructure Minera Autlan's debt
drawn by its bank creditors has been presented to the company's
board of directors, Reforma/Infolatina related Thursday.
Accordingly, the outline has basically met with the board's
approval. Autlan is reportedly seeking to restructure its
approximately $90million debt and it is widely believed that the
company will be successful in its efforts. Several days ago, the
company successfully requested a 75-day grace period in which to
make good on payments to bank creditors, which include Bancomer,
Serfin and Bank of Montreal. The Mexican mining and minerals
group has been buffeted by increases in the price of natural gas
and electricity, which account for one-third of its costs.



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P E R U
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ISCAYCRUZ: Glencore Awaits Announcement On Final Price
------------------------------------------------------
Glencore, the primary shareholder of Iscaycruz with 75-percent
ownership, is awaiting an announcement on the final price of the
25-percent stake in the Peruvian zinc mine before it decides
whether to make a bid for the remaining position. A company
spokesperson revealed the latest development in a Business News
Americas report Thursday edition. The price of the mine, which is
being sold by the state, is expected to be released within the
next two weeks. Last year Cepri and a group of advisers in charge
of the sale agreed on a price of between US$20 million and
US$27million. Cepri, Peru's special privatization committee, is
considering whether to go ahead with the auction before the first
round of presidential elections on April 8.




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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