/raid1/www/Hosts/bankrupt/TCRLA_Public/010322.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

            Thursday, March 22, 2001, Vol. 2, Issue 57

                           Headlines


B E R M U D A

RSL COMMUNICATIONS, LTD.: Company Profile


B R A Z I L

CVRD: To Strengthen Leadership In Iron Ore Market
GLOBO CABO: Seeks Waiver Of Redemption Rights From Note Holders


C H I L E

EDELNOR: S&P Lowers Edelnor Ratings to 'CCC'; On Watch Negative
TELEFONICA CTC: Postpones Election Of President Until Late March


M E X I C O

GMD: Hunts For National, Foreign Financing For New Project
GRUPO VITRO: Dividend Payment Raise Analysts' Concerns
XEROX CORP.: 5,000 Printers to Edward Jones For $20 Million
XEROX CORP.: New Strategy, Large-Scale Migration to Color


     - - - - - - - - - -


=============
B E R M U D A
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RSL COMMUNICATIONS, LTD.: Company Profile
-----------------------------------------
Name: RSL communications, Ltd.
      Hamilton HMCX
      Bermuda, Bermuda
      
Telephone:  (441) 295-2832

Website:  http://www.rslcom.com

Type of Business: RSL Communications, Ltd. is a facilities-based
                  communications company that provides a broad
                  range of voice, data/Internet and value-added
                  service solutions primarily to small ad medium-
                  sized businesses and residential customers in
                  selected markets around the globe.  The company
                  currently has revenue-producing operations and
                  provides services in Australia, Austria,
                  Belgium, Canada, Denmark, Finland, France, G
                  Germany, Hong Kong, Italy, Japan, Luxembourg,
                  the Netherlands, New Zealand, Portugal, Spain,
                  Sweden, Switzerland, Mexico, the United
                  Kingdom, the United States, and Venezuela.
      
SIC:  TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE)
[4813]

Employees: 2,800 (last reported count)

Total Assets:  $1,824,498 (in thousands-as of Sep. 30, 2000)

Total Liabilities: $2,078,075 (in thousands-as of Sep. 30, 2000)

Trigger Event:  On March 2, 2001, decided to defer payment
on the $100 million loan extended to the
company late last year by RSL Chairman Ronald
Lauder. It also suspended the regular
semiannual interest payments due on March 1,
totaling approximately $22 million, to holders
of its 9-1/8% notes (maturing March 1, 2008),
12-7/8% U.S. dollar denominated notes (maturing
March 1, 2010) and 12-7/8% Euro denominated
notes (maturing March 1, 2010). The indentures
governing such notes provide for a 30 day grace
period.
   
Public Securities:  Shares outstanding at November 9, 2000:

36,575,218 - Class A common stock, par value
$0.00457 per share

24,267,283 - Class B common stock, par value
$0.00457 per share, outstanding.


CEO:  Paul Domorski

CFO:  Steven Schiffman

Vice President of
Legal Affairs and
General Counsel: Avery Fischer

Last TCRLA Headline DATE: Wednesday, March 21,2001,Vol. 2,Issue
56


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B R A Z I L
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CVRD: To Strengthen Leadership In Iron Ore Market
-------------------------------------------------
After it concluded an equity restructuring with CSN (Companhia
Siderurgica Nacional), CVRD (Companhia Vale do Rio Doce) will
step up plans to consolidate its leadership in iron ore market,
South American Business Information said Tuesday. Accordingly,
the company is going to invest US$1.057 billion this year, 54.3
percent of which will be allocated to iron ore segment. Roger
Agnelli, Chairman of the company's Board of Directors, also said
that the company is planning to acquire the reserves held by
Caemi and Ferteco.

In a related report, CVRD and the Italian steelmaker Ilva S.p.a.
recently concluded an iron ore price negotiation for 2001,
settling on a 4.3 percent increase for the Carajas Sinter Feed.


GLOBO CABO: Seeks Waiver Of Redemption Rights From Note Holders
----------------------------------------------------------------
Globo Cabo S.A. (BOVESPA: PLIM4; NASDAQ: GLCBY; Latibex: XGLCP)
announced today the commencement of the solicitation of waivers
from the holders of its 12 5/8% Senior Guaranteed Notes due June
18, 2004. The solicitation is being made by Jonquil Ventures
Limited, a wholly-owned subsidiary of Globo Cabo. Jonquil is
offering to pay holders US$7.00 per US$1,000 principal amount of
notes to waive their right to redeem their notes on June 18,
2001.

Investors choosing to waive their rights to redeem the notes on
June 18, 2001, would receive on the maturity date of June 18,
2004, as provided in the Indenture governing the notes, US$1,050
for every US$1,000 principal amount of the Notes, or 105% of the
principal amount, plus accrued and unpaid interest, if any, in
addition to the US$7.00 per US$1,000 principal amount they would
receive now. Investors choosing to redeem the notes for cash at
101% of the principal amount on June 18, 2001, would receive
US$1,010 for every US $1,000 principal amount of notes, plus
accrued and unpaid interest, if any. Holders of the notes are
urged to consult with their broker, dealer or other advisors
regarding the current market levels for the notes.

The waiver solicitation expires on April 11, 2001, unless
extended. The right to redeem notes expires May 4, 2001. Holders
should contact their bank, broker or custodian well ahead of
these deadlines to insure their choice is properly received.

Multicanal Participacoes S.A. was the original obligor on the
Notes. In connection with a corporate reorganization completed in
September 1998, Multicanal became an indirect subsidiary of Globo
Comunicacoes e Participacoes S.A. Following the reorganization,
Multicanal changed its name to Globo Cabo S.A.

At the date hereof, US$185 million principal amount of the notes
are outstanding. Jonquil is soliciting holders to waive their
redemption option in connection with Globo Cabo's strategy of
continuing to extend the average life of its outstanding debt to
better match the maturities of Globo Cabo's existing investments.



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

EDELNOR: S&P Lowers Edelnor Ratings to 'CCC'; On Watch Negative
---------------------------------------------------------------
Standard & Poor's--March 20, 2001--Standard & Poor's today
lowered its senior-unsecured debt and corporate credit ratings on
Empresa Electrica del Norte Grande S.A. (Edelnor) to triple-'C'
from single-'B', and placed the ratings on CreditWatch with
negative implications. Standard & Poor's may further lower
Edelnor's ratings pending ongoing conversations with Edelnor's
management.

Edelnor generates and transmits electricity in the northern
interconnected system (SING), Chile's second largest electrical
grid. Mirant Corp. (triple-'B'-minus/Stable/'A-3'), a subsidiary
of Southern Co. (single-'A'/Stable/'A-1') owns 82% of Edelnor.

The downgrade reflects:

Debt financing at the NorAndino gas pipeline project did not take
place as forecasted (anticipated US$30 million cash flow to
Edelnor); Uncertainty over Edelnor's ability to meet its
financial obligations in 2001; The likelihood of default in the
first quarter of 2002; Worse-than-anticipated operating
performance resulting in coverage ratios below expectations; The
anticipated loss of significant contract revenue at the end of
2001; Uncertainty about Edelnor's ability to keep and attain new
sales contracts or sell into the spot market considering the
competitive disadvantage generated by regulatory prohibitions on
the use of petroleum coke fuel; and The entry of gas and gas-
fired plants, which has created overcapacity in the SING grid.

Edelnor was to receive US$30 million from a debt issuance at its
gas pipeline subsidiary, NorAndino, and in this way reduce
Edelnor's equity investment in the project. However, this
financing did not take place. The elimination of this expected
cash influx is pivotal to Edelnor's current cash flow crunch, and
makes Edelnor even more vulnerable in 2002 as it will lose the
Emel distributors' contracts at the end of 2001. The Emel
contracts account for roughly one-half of contracted capacity.

The loss of these contracts coincides with the entry of lower
marginal cost, gas-fired facilities, which have doubled installed
capacity in the SING. Because most large customers have already
procured firm supply, there is little opportunity for Edelnor to
replace these customers in the SING.
While Edelnor is expected to be able to meet its financial
obligations in the first half of 2001, this will only be possible
with the aid of a US$6 million fund set aside for Edelnor, and
made available by its Chilean parent, Mirant Chile S.A. The
purpose of this fund is to help Edelnor work through minor cash
flow difficulties due to timing. Edelnor recently accessed the
fund for the first time (approximately US$1.5 million). Mirant
Corp., the U.S. parent, has stated its willingness to provide
minor amounts to cover timing issues during the year, but has no
plans to inject long-term funding. It is not clear whether
Edelnor will be able to meet its financial obligations in the
second half of the year without the aid of Mirant. Furthermore,
without revenues from the Emel contracts and expected narrowing
margins on sales of coal-powered energy, and barring any
additional aid from its parent, it will be exceedingly difficult
for Edelnor to meet its scheduled interest payments in March
2002. This assumes Edelnor does not win its appeal to the
national environmental regulator (CORAMA) to use pet coke, a more
efficient fuel, in its coal plants, which might enable the coal
plants to be dispatched more often. Even if Edelnor wins its
appeal, however, which may take place in the second half of 2001,
it will only marginally improve Edelnor's ability to meet its
financial obligations in March 2002, Standard & Poor's said.


TELEFONICA CTC: Postpones Election Of President Until Late March
----------------------------------------------------------------
Telefonica CTC Chile decided at a board of directors meeting
Tuesday to postpone until later in March the election of its new
president and new board, a company spokesman told EFE. Bruno
Philippi, whose appointment was never confirmed officially, was
expected to be elected president replacing Spaniard Javier
Aguirre who submitted his letter of resignation on Feb. 28.
Aguirre's decision to step down comes just days after the release
of the company's poor results for 2000, posting heavy losses for
the second consecutive year. Philippi is the former president of
Chilectra, the country's largest electricity company, which is
controlled by Spain's Endesa.

Also in Tuesday's meeting, Spaniard Antonio Viana-Baptista, the
company's acting president, who had temporarily replaced Aguirre,
submitted his resignation. Chilean law stipulates that, in case
of resignation of a top executive and his replacement, all
members of the board must be elected again. People at the meeting
held on Tuesday decided to hold another meeting in late March,
but did not set a date to settle the issue. They chose April 27
as the date to hold a special meeting of shareholders.


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

GMD: Hunts For National, Foreign Financing For New Project
-----------------------------------------------------------
Mexican construction firm Grupo Mexicano de Desarrollo announced
it is on the lookout for a national and foreign financing as it
would soon start to develop its new $200 million highway project
in the state of Mexico, Reuters reported Tuesday.

"At this date we have letters of intent signed for obtaining a
bridge loan of $5 million, which will serve to conclude traffic
and other studies," GMD said in a statement. The company also
revealed that another letter of intent has also been signed, for
financing of the entire project, but the amount of that loan
would be defined after the studies were completed. GMD hopes to
obtain a loan of $120 million to help fund the construction, its
first in Mexico since the government's failed plan to expand the
road network in the early 1990s.

In 1997, GMD undertook major debt restructuring and was able to
resume trading on the local stock exchange in November after a
two-year suspension because of its financial losses. Lately, the
company appears to be gradually regaining its financial health.
Earlier this month, it made payments of $35 million and 350
million pesos on promissory notes as part of its financial
restructuring.


GRUPO VITRO: Dividend Payment Raise Analysts' Concerns
-------------------------------------------------------
Vitro SA, Mexico's largest glassmaker will seek shareholders'
approval of a $30.5 million dividend payment, equal to 1 peso
($0.11) a share, at their next meeting on April 5, Bloomberg
reported Tuesday. Word on the street says its controlling
shareholders, the Sada Gonzalez family, will likely approve the
dividend. In addition, the majority owners are expected to
approve another proposal to sell $250 million in debt. However,
several analysts would rather see the company use the available
funds to reduce its debts.

Juan Carlos Mateos, an analyst at Merrill Lynch in Mexico City,
said, "It would have been better to focus completely on either
paying down their debt or allocating it to the selective growth
program they have." Mateos maintains a `neutral' recommendation
on the stock.

Last week, the Vitro's shares fell as much as 9.9 percent on
concerns the company would have trouble refinancing its debt. The
company needs to refinance about $420 million of debt this year
and $520 million in 2002.

Some analysts predict the company won't be able to refinance
their debt. Primary concerns are that refinancing could curb
profit growth and that any slowdown in the Mexican economy would
further strain finances.


XEROX CORP.: 5,000 Printers to Edward Jones For $20 Million
-----------------------------------------------------------

In its biggest-ever win in office color printing, Xerox
Corporation (NYSE: XRX) today announced the purchase of 5,000
Xerox Phaser(R) 1235 color printers by financial services firm
Edward Jones.

Edward Jones, the St. Louis-based financial services firm, made
the purchasing decision based on Xerox's advanced color printing
technology and ability to meet increasing requirements for color
in offices worldwide. The new color printers will provide Edward
Jones investment representatives with a superior tool to better
serve their clients.

With the close of this deal, Edward Jones will begin an initial
deployment of 5,000 printers with plans to migrate nearly 7,000
existing offices from black-and-white to color printing. Xerox
color printers will be used in an additional 4,000 offices
planned to open between now and 2003. Along with the 5,000 color
network printers, Edward Jones is committed to purchasing related
supplies from Xerox, bringing the total purchase value to nearly
$20 million.

"Edward Jones has a clear focus on serving the needs of
individual investors. Color printing clearly supports this goal
by improving our ability to communicate with our clients," said
Rich Malone, principal of information systems, Edward Jones.
"Xerox simply has the best tools for the job."

As part of an ongoing business relationship, Xerox and Edward
Jones worked together to identify a solution that met Edward
Jones' color printing objectives, including high printing speed
and superior image quality. Last November, Xerox set a new speed
benchmark with the Xerox Phaser 1235 color printer. The Phaser
1235 features single-pass technology to deliver color documents
at 12 pages per minute and 20 pages per minute in black and
white. This is up to four times faster than existing color laser
printers at full resolution (1200 dpi). In addition, the single-
pass design of the Phaser 1235 offers increased reliability over
laser printers because its imaging mechanism has fewer moving
parts.

"We believe this is the largest-ever office color printer deal,"
said Gerry Perkel, president, Xerox Office Printing Business.
"Today's announcement demonstrates our commitment to lead the
transition from black-and-white to color printing in the office
by leveraging the speed advantages of single-pass color printing
technology."

Xerox is focusing on color as part of a turnaround plan that
leverages the company's unrivaled range and leadership in color
products and solutions from SOHO to the networked office to
production printing environments.


XEROX CORP.: New Strategy, Large-Scale Migration to Color
-----------------------------------------------------------

Xerox President and COO Anne Mulcahy today outlined a broad color
strategy -- supported by breakthrough technology -- that will
fuel a transformation in Xerox Corporation's (NYSE:XRX) core
business and drive a large-scale migration from black-and-white
to color documents in every market the company serves.

Speaking at a multinational press briefing, Mulcahy showcased
"the world's largest color platform," including a bevy of new
color products, solutions, and services that form the foundation
of "The New Xerox."

"With this incredible array of technology we will continue to
shatter the barriers to color everywhere," Mulcahy said. "Our
customers are demanding it - as they look for faster, more cost-
effective color solutions. Our business model requires it - as we
pursue new and more profitable sources of revenue."

As part of its color leadership strategy, Xerox spotlighted
several new color offerings, ranging from the breakthrough 21
page-per-minute (ppm) Phaser 2135, a $5,999 office color printer
that is three times faster than the competition, to a roll-fed,
continuous-feed color web press that runs 2000 ppm with
customized content on every page. Also highlighted were new
digital front ends and enhancements to the DocuColor series,
enabling transactional printing that makes possible cost-
effective production of bills, statements and invoices in full
color.

In a related announcement, Xerox said it closed a nearly $20
million multinational deal for 5000 Phaser(R) color printers with
the St. Louis-based financial services firm Edward Jones.

Xerox also provided a progress report, virtual demo and
manufacturing tour of its next-generation color technology, code-
named "FutureColor", which is designed to attack the traditional
offset printing market. It is on track for early customer testing
later this year and launch in 2002.

Based on positive market response to new color products -- and
related solutions, services, and supplies -- Mulcahy said she
expects Xerox's color revenue to continue to grow at strong
double-digit rates. Xerox's color revenues doubled from $1.5
billion in 1997 to more than $3 billion in 2000, reflecting the
success of the DocuColor line of digital color presses for print
shops, the recently acquired Tektronix Phaser color printers and
the new multifunction devices for the networked office.

The company has earned a No. 1 marketshare position in digital
production color with 70 percent share and is a strong No. 2 with
about 25 percent share in office color printing.

Xerox and Fuji Xerox together will invest more than $715 million
in color research and development this year, accounting for about
40 percent of a total $1.7 billion R&D budget. "Though we are
reducing costs in many areas, we are actually ramping up the
color investments that are critical to our future," Mulcahy
pointed out. "Our goal is to make the vast majority of Xerox
products color enabled over the next three to five years."

Even as it intensifies its color focus, Xerox will continue to
leverage the strength of its black-and-white line, extending the
reach of its market-leading DocuTech and DocuPrint production
printing family with new solutions targeting high-growth markets
such as short-run customized book publishing, on-demand newspaper
applications, web-based printing services, and others.

Xerox's increased focus on color and customization, is central to
the company's mission to help customers create and profit from
higher value "smart" documents while reducing the cost of -- or
eliminating -- lower value documents.




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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