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       T R O U B L E D   C O M P A N Y   R E P O R T E R

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

            Wednesday, March 14, 2001, Vol. 2, Issue 51

                           Headlines



A R G E N T I N A

EPESF: Bidding Rules To Be Released Early Next Month


B R A Z I L

COPENE: Sale Terms To Be Published Friday
KLABIN: Profits In 2000 Indicate May Be Out Of Trouble


C O L O M B I A

ARTHUR D. LITTLE: Dismissing 7 Percent Workers; Closing Offices
BAVARIA: Strike Causes Slump In Colombian Stocks And Bonds In Feb


E C U A D O R

PETROECUADOR: Needs US$40M To Rehabilitate Petroproduccion


G R E N A D A

FIRST INTERNATIONAL: Gov't Closes Bank, PriceCooper To Audit


M E X I C O

CHRYSLER: Accused Of Engaging In Unlawful Employment Practices
CHRYSLER: Fights To Prevent No-Confidence Vote
CYDSA: Readies To Meet Obligations
GRUPO ELEKTRA: Corporate Complications Threaten Outlook


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

EPESF: Bidding Rules To Be Released Early Next Month
----------------------------------------------------
The privatization process of power distributor Epesf is expected
to publish the bidding rules for its privatization by the first
week of April. A source close to the decision updated Business
News Americas Monday that the government of Argentina's Santa Fe
province is moving forward with its plans. The process has been
extended largely due to the economic woes that have been plaguing
the country. Although Argentina has not fully emerged from its
hardships, the signs are more promising this year, according to
the source.



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B R A Z I L
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COPENE: Sale Terms To Be Published Friday
-----------------------------------------
Terms for the sale of Petroquimica do Nordeste SA, the nation's
largest petrochemicals producer, are set to be released by
Friday, Bloomberg reported Monday. Carlos Eduardo Freitas, the
central bank's director in charge of managing the sale, denied
previous reports that the owners of Copene would lower the
minimum price for a controlling stake in the company to $925
million from as much as $1 billion. Grupo Ultra, whose holdings
include Ultrapar Participacoes SA, is the sole contender to buy
Copene, which is slated to go on the auction block by the end of
the month.


KLABIN: Profits In 2000 Indicate May Be Out Of Trouble
------------------------------------------------------
Brazilian paper and pulp company Ind£strias Klabin de Papel e
Celulose smells recovery as it registered net profits of R$13.73
million in 2000, reversing previous year's losses of R$116.46
million, Brazil Financial Wire reported Monday. Year 2000 net
revenues stood at R$1.88 billion, a 27-percent increase from the
previous year's net revenues. Gross profit in 2000 stood at
R$818.72 million, a 37-percent rise compared to 1999. Its
operating profit was at R$110.40 million, reversing 1999's loss
of R$ 144.82 million. Net financial expenses in 2000 were cut by
23 percent, to R$ 351.70 million. As of Dec. 31, 2001, the
company's net equity amounted to R$ 1.23 billion. Ebitda
(earnings before interest, taxes, depreciation and amortization)
stood at R$ 632 million in 2000, representing a 38 percent
increase from a year before.



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

ARTHUR D. LITTLE: Dismissing 7 Percent Workers; Closing Offices
---------------------------------------------------------------
Headquartered in Cambridge, Massachussets, Arthur D. Little Inc.
announced it will dismiss 200 employees, or 7 percent of its
workers, Bloomberg reported Monday. The decision, aimed at
cutting costs, came after the company withdrew its initial public
offering. About 60 of the total number of employees to be
dismissed come from its headquarters, while the balance came from
offices in U.K. and North America. The company will also shut
down its offices in Bogota, Buenos Aires and Mumbai, dismissing
all of the see employees at these locations. The management and
technology-consulting firm is cutting costs after it withdrew its
C-quential unit's IPO registration because of a reduction in
projected proceeds. The firm offers consulting to the
telecommunications, media and electronics industries.


BAVARIA: Strike Causes Slump In Colombian Stocks And Bonds In Feb
-----------------------------------------------------------------
The value of foreign holdings in Colombian stocks and bonds fell
in February from a year ago, after investors sold shares of
Bavaria SA, the largest listed company, due to a 71-day strike
that began in December, Bloomberg reported Monday.

"The situation with Bavaria certainly concerned investors," said
Federico Gomez, a trader with Afin SA brokerage. "That may have
sparked the drop in stock holdings."

In mid-December of last year, approximately 4,800 unionized
workers staged a strike at Bavaria SA, the No. 1 brewer. They
demanded raises of 25 percent and higher pension and health
benefits. The strike ended two weeks ago and cost the company
about 100 billion pesos ($44.2 million) in lost revenue, halting
production at Bavaria's 18 plants. Stores were emptied of its
beer and malt brands.



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

PETROECUADOR: Needs US$40M To Rehabilitate Petroproduccion
----------------------------------------------------------
Petroproduccion, the exploration and production subsidiary of
Ecuadorian state-owned oil company Petroecuador, is in need of a
US$40-million infusion to rehabilitate its 90 closed wells.
Fausto Mejia, spokesperson for the company, explained the
Petroproduccion's capital requriements in a BNamericas.com report
released Monday. Because of lack of state resources, Petroecuador
cannot invest in the rehabilitation by itself. Therefore, private
sector participation was authorized. Petroproduccion has already
called for bids, and five consortia bought bidding rules. Mejia
did not give details of the consortia members, and added that
none has presented a bid yet. The bidding deadline is the first
week in April, and after which Petroproduccion will have 15 days
to negotiate proposals with the companies. Contracts are
scheduled for signing in May.

Petroproduccion has 659 wells, of which 420 are in production.
Ninety of the closed wells are under consideration for
rehabilitation with the private sector; 68 are closed and under
consideration for state-funded rehabilitation; 25 are officially
abandoned; and 56 are in the administrative process to be
declared officially abandoned.



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G R E N A D A
=============

FIRST INTERNATIONAL: Gov't Closes Bank, PriceCooper To Audit
------------------------------------------------------------
The Grenadine government has shut down First International Bank
as part of an effort to clean up the Caribbean island's
international financial services, according to a Financial Times
report Tuesday. First International, one of the 17 offshore
banks, whose licenses were revoked by the government, was accused
by local regulators of diverting about $150 million of clients'
funds to accounts outside the island. The government has
appointed the international accounting firm
PricewaterhouseCoopers to carry out a forensic audit to trace and
recover the money.

First Bank collapsed about the middle of last year after several
of its former managers, accused of diverting millions to foreign
accounts, left the country. The event led the government to
introduce several new measures aimed at tightening the loopholes
in the local offshore sector.



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

CHRYSLER: Accused Of Engaging In Unlawful Employment Practices
--------------------------------------------------------------
The U.S. Equal Employment Opportunity Commission filed a lawsuit
in Indianapolis alleging Chrysler of engaging in unlawful
employment practices since 1998 at a Kokomo transmission
production plant, AP reported last week. The lawsuit seeks an
injunction to stop Chrysler's alleged refusal of voluntary
transfer of the plant's disabled workers. The action seeks to
stop the company from engaging in any other employment practice
that discriminates on the basis of disability. In addition, the
lawsuit, which also accuses Chrysler of failing to meet record-
keeping requirements under the Americans with Disabilities Act,
seeks unspecified compensatory and punitive damages. Elaine Lutz,
Chrysler spokeswoman, said the company could not comment on the
report since it has not seen the lawsuit.


CHRYSLER: Fights To Prevent No-Confidence Vote
----------------------------------------------
In response to recent reports suggesting that a German small
shareholders' association is threatening to file a censure motion
against DaimlerChrysler's senior management at the April 11
shareholders' meeting in Berlin, executives wrote a lengthy,
point-by-point letter explaining its turnaround plan, AP said
Monday. The letter, which largely details the company's
previously-announced plans, focused on restructuring and its goal
to become the world's leading automobile manufacturer.
Additionally, the company said that its $3.9 billion, three-year
recovery plan would solidify Mercedes' lead as the world's most
recognized luxury brand, restore Chrysler and its Freightliner
commercial truck division to profitability and establish more
cooperation with Mitsubishi Motors Corp.

The investor rights group blasted Stuttgart executives for the
company's loss of 50 billion euros ($46.5 billion) in market
value since Daimler-Benz took over U.S.-based Chrysler Corp. in
1998. It also faulted the management board for reacting too late
to mounting losses at Chrysler and blamed the supervisory board
for failing to keep tighter reins on management.


CYDSA: Readies To Meet Obligations
----------------------------------
After reporting losses for the past three years, Mexican textiles
and industrial-packaging firm Cydsa is preparing to deal with a
mountain of debt. $347 million comes due this year and another
$200 million next year. In a Reforma/Infolatina report, Cydsa
Director of Finance Cesareo Frias Mendoz said the company is
already in talks with their banks regarding postponement of
payment dates. However, it expects to pay the bonds that come due
in June 2002 on time. Frias is confident the company will be able
to meet its demands if current negotiations with creditors reach
a successful conclusion. He also revealed that the company has
been cutting costs and divesting non-core assets in order to
ensure that it can meet its debt obligations.

"We've already completed negotiations on divesting our corporate
office building," Frias said, declining to reveal the terms of
the deal. Last year Cydsa sold three subsidiaries and closed two
plants.


GRUPO ELEKTRA: Corporate Complications Threaten Outlook
--------------------------------------------------------
The excellent earnings registered by Mexican electronics and
home-appliances retailer Grupo Elektra in 2000 is not enough to
eliminate the gloomy outlook for the largest specialty retailer,
Infolatina said Monday. Concerns about the future of the
company's stake in Casa, a TV Azteca holding company, have been
raised. According to analysts at Grupo Financiero Banamex Accival
(Banacci), if Elektra sells its Casa stake, it will garner 316
million dollars and end the year with 2.4 billion pesos in net
debt. If it opts to hold the position, it will be hit with a
penalty of 16 million dollars and end the year with net debt of
3.9 billion pesos. Related factors clouding Elektra's outlook are
the Salinas family's option to sell its stake in Casa; the
positive or negative impact from other companies within Grupo
Salinas; and market perceptions regarding the creation of Grupo
Salinas, including management fees the companies will have to
pay.


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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