/raid1/www/Hosts/bankrupt/TCRLA_Public/010409.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

            Monday, April 9, 2001, Vol. 2, Issue 69

                           Headlines



B R A Z I L

CESP: Spanish Endesa Eyes Privatization
CVRD: BHP May Unload Its Small Position In CVRD


C O L O M B I A

PAZ DEL RIO: Seeks Partnership With Foreign Investors


M E X I C O

AEROMEXICO: Delta Airlines Top Exec Meets With CEO, Minister
CHRYSLER: Union Boss "Nothing Without German-Based Daimler-Benz"
GRUPO VITRO: Shareholders Approve Dividend, Corp. Debt Issue
XEROX: President Of Regional Operations Pays Visit To Argentina


V E N E Z U E L A

VENEPAL: Could Sell Writing Paper, Notebooks To Grupo Carvajal


     - - - - - - - - - - -


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B R A Z I L
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CESP: Spanish Endesa Eyes Privatization
---------------------------------------
Spanish power group Endesa is carefully considering the
privatization of Cia. Energ‚tica de Sao Paulo (Cesp), the
Brazilian power utility. The state government plans to put CESP
on the auction block May 16, Brazil Financial Wire said Thursday.
The government's first attempt in December to auction off Cesp
failed due to a lack of bidders, which pulled out of the running
at the last minute citing environmental and financial concerns.

Endesa President Alfredo Lorente said CESP's current condition is
much improved over its highly-indebted financial state the first
time around. However, Lorente refused to disclose whether Endesa
plans to bid for CESP in a consortium or individually. He did say
the Spanish company is not interested in holding a minority stake
in the Sao Paulo utility. CESP is Brazil's third largest power
generator.


CVRD: BHP May Unload Its Small Position In CVRD
-----------------------------------------------
BHP Billiton is looking to sell its 2.1 percent ownership in Cia.
Vale do Rio Doce (CVRD), and is now in talks with other CVRD
shareholders regarding the possible sale of the stake, AFX Europe
reported Wednesday. The negotiations have also persuaded CVRD to
postpone until April 25th an EGM at which shareholders are due to
approve board changes following Cia Siderurgica Nacional's
divestment of its stake in CVRD.

Meanwhile, CVRD is also planning the sale of its 51.48 percent
stake in woodpulp and paper company Cenibra. Cenibra is shared by
the Japanese JBP, a consortium comprised by 15 companies which
hold 48.52 percent stake.

CVRD posted net profits of 2.133 bln reals in 2000.



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C O L O M B I A
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PAZ DEL RIO: Seeks Partnership With Foreign Investors
-----------------------------------------------------
In an effort to get out from the financial troubles it has
suffered over the last year, Colombian steel company Paz del Rio
hopes to obtain partnership with a foreign investor. Business
News Americas reported Thursday that the company's receiver
Gilberto Gomez says Paz del Rio has improved its financial
standing. Gomez hopes to negotiate an agreement between
shareholders and external creditors within four or five months to
reschedule debt payments thereby guarantying the company's
viability.

Paz del Rio is restructuring in accordance with Law 550 of 1999,
which creates a framework to facilitate the recovery of companies
that ran into trouble during the country's economic and financial
crisis.

"We have advanced in this process for seven months and four or
five months remain to complete it," Gomez said. It is beginning
to bear fruit in terms of lower costs and higher income, Gomez
said. The current plan involves investment of some US$8 million,
as well as other projects requiring almost US$10 million, which
will be spent in the near term to improve productivity. The
restructuring involved changing the type of fuel used from oil,
the international price of which has tripled, to natural gas.



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M E X I C O
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AEROMEXICO: Delta Airlines Top Exec Meets With CEO, Minister
------------------------------------------------------------
Leo Mullins, a Delta Airlines top executive, was scheduled to be
in Mexico City on Thursday for the purpose of expressing Delta's  
interest in acquiring a stake in Aeromexico when the Mexican
bailout agency IPAB puts it up for sale later this year.
According to a Reforma/Infolatina Thursday report, Mullins
planned to meet with Communications and Transport Minister Pedro
Cerisola and Alfonso Pasquel, CEO of leading Mexican carrier
Aeromexico.

Aeromexico is one of the two leading airlines held by Cintra that
the government wants to privatize in the second semester of this
year. IPAB has retained Merrill Lynch to act as financial agent
in the sale.


CHRYSLER: Union Boss "Nothing Without German-Based Daimler-Benz"
---------------------------------------------------------------
Struggling U.S.-based unit Chrysler, currently waging a three-
year, $3.9 billion restructuring plan, might not exist had it not
been bought by German-based Daimler-Benz AG in 1998, creating
DaimlerChrysler AG. The analysis was advanced by the United Auto
Workers' Chief Stephen Yokich, in an Associated Press Thursday
report.

"I don't think there would be a Chrysler if there wasn't a
Daimler with a fatter purse than we have here in Michigan,"
Yokich related, in what seemed to be his first public comments
since Chrysler rolled out its restructuring plan in recent
months.

Under its restructuring, Chrysler plans to idle six plants in the
next two years, most of them in Central and South America. In
January, it announced plans to cut 26,000 jobs, which is
equivalent to one-fifth of the company's work force. Yokich's
silence since the company's fist announcement has drawn
complaints from some UAW-backed Chrysler workers. Some workers
contend that the union kept them in the dark, needlessly feeding
uncertainty and rumors.

"It's not just my job (to dispense information to the UAW's rank-
and-file members). I'm just one of the team. We all have a part
in the team, and we all have to pull it," he said.

Since Chrysler's unveiling of its revival plan, some analysts
questioned whether the company's cuts go far enough, and if the
company was too hamstrung by restrictions of union contracts
negotiated in 1999. Those UAW and Canadian Auto Workers contracts
bar the company from closing, spinning off or even partly selling
plants, unless there's an "act of God, catastrophic circumstances
or significant economic decline."


GRUPO VITRO: Shareholders Approve Dividend, Corp. Debt Issue
------------------------------------------------------------
Shareholders of Mexican glassmaker Vitro SA approved a dividend
payment of one peso per share, the company announced Thursday in
a Reuters report. When the company first announced the plan to
pay dividends, it raised doubts from analysts, who said they
would rather see the company use the available funds to reduce
its debts. The group, which ended 2000 with debts amounting to
US$1.634 billion, also received shareholder approval to issue
$250 million in corporate debt.


XEROX: President Of Regional Operations Pays Visit To Argentina
---------------------------------------------------------------
President of Regional Operations of Xerox, Emerson Fullwood, paid
a visit to one of the company's important branches located in
Argentina, South American Business Information reported Thursday.
The visit is designed to monitor closely local figures, Fullwood
said, adding that Xerox plans to strengthen its presence in the
local market. Although he declined to give local revenue figures,
Fullwood is optimistic that the company will grow by 10 percent
this year. He added that the company's digital and color printing
products would increase business opportunities this year.

In order to improve its financial crisis worldwide, the company
has undertaken fairly aggressive financial plans, converting
assets to cash as quickly as possible. In addition, Xerox intends
to improve its market position by focusing on customer needs
through larger solutions and machinery, its new network printer
equipment, color printing, home office products (which is growing
in Latin America), and pursuing related software or solutions.



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

VENEPAL: Could Sell Writing Paper, Notebooks To Grupo Carvajal
--------------------------------------------------------------
As it battles with its financial problems, Venezuelan paper group
Venepal is considering the sale of its writing paper and `Globo'
notebooks wing to Grupo Carvajal of Colombia.  According to South
American Business Information Thursday, Carvajal is one of the
leaders in the Colombian paper market. The company began
operations in Venezuela in 1990 and eventually became Venepal's
partner in 1995.

Meanwhile, Smurfit Carton de Venezuela is still on a two-month
hold since signing a letter of intent with Venepal, giving it
time to decide whether or not to buy a controlling stake in the
struggling paper maker.

Venepal, wrestling with financial problems for the last two years
including some US$58 million in restructured debt, has until
September 2001 to find a new partner. If unsuccessful, bank
creditors could exercise their right to own a controlling 64
percent of the firm.




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
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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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