/raid1/www/Hosts/bankrupt/TCRLA_Public/010410.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

            Tuesday, April 10, 2001, Vol. 2, Issue 70

                           Headlines



A R G E N T I N A

URSUS TELECOM: Files For Chapter 11 Bankruptcy Protection In US


B R A Z I L

BANESPA: Banco Santander Raises Stake To 97.1% With Share Offer
CESP: French Group Reiterates Interest In Pending Privatization
JOSAPAR: Registers R$19.93M Loss In 2000


D O M I N I C A

LIAT LTD.: Union Discards Airline's Outsourcing Offer


M E X I C O

AEROMEXICO: Lost US$5 Million Due To Temporary Runway Closure
BANCRECER: HSBC Eyes Government-Intervened Bank
GOODYEAR: Closes Tire Manufacturing Plant In Mexico
GRUPO VITRO: Recent Purchase Positioning For European Market
GRUPO SIDEK: Concludes Purchase Of Grupo Simec
MOTOROLA: Denies Facing Serious Liquidity Problem
SERFIN: External Auditor Rules In Favor Of Mexican Government


     - - - - - - - - - -


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

URSUS TELECOM: Files For Chapter 11 Bankruptcy Protection In US
---------------------------------------------------------------
Ursus Telecom Corporation (Nasdaq:UTCC) along with Access
Authority, Inc., one of its wholly owned subsidiaries ("Ursus"),
have filed for U.S. Bankruptcy Code Chapter 11 protection today.

Luca Giussani, Chief Executive Officer of Ursus Telecom stated:
"The Company is taking this step reluctantly, however, the filing
will allow us to maintain our operation while the we develop and
submit a plan of reorganization."

About Ursus Telecom

Ursus, a specialist in carrier grade VoIP solutions worldwide, is
an international long distance carrier that provides VoIP, long-
distance, direct-dial, value-added and Internet-based services.
Ursus has retail operations throughout Latin America, the Middle
East, Africa and Europe, along with wholesale and retail
operations in the United States. Ursus is also a licensed
national and international long-distance carrier in Argentina and
Peru.



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

BANESPA: Banco Santander Raises Stake To 97.1% With Share Offer
---------------------------------------------------------------

* The share tender offer, which closed on April 6, brings Banco
Santander Central Hispano's stake in the bank to 97.1%

* The bid was for 67% of the bank's capital at a price of 95.22
Reals per 1,000 shares. The operation is valued at 2,275 million
Reals, or US$ 1,068 million

* The total investment in Banespa following the offer totals US$
4,870 million, equivalent to 2.1 times book value at the time the
bank was acquired last November

Banco Santander Central Hispano's public share offer for
outstanding minority shares of Banco do Estado de Sao Paulo
(Banespa) concluded successfully today with 95% acceptance for
ordinary shares and 96% for preferred shares. As a result, it now
holds 98.3% of the shares with voting rights (ordinary shares)
and 97.1% of the economic capital (preferred shares).

The bid was announced on December 28 for 67% of Banespa's total
capital, and took place between March 2 and April 2. The process
of allotting shares closed today and financial settlement will be
on April 11.

As a result of the number of ordinary and preferred shares
tendered during the offer period, at a price of 95.22 Reals per
1,000 shares, the operation is valued at 2,275 million Reals or
US$1,068 million. The total investment by Banco Santander Central
Hispano in Banespa now totals US$4,870 million equivalent to 2.1
times the net worth of the bank at the time it was acquired in
auction on November 20 last year.

This investment in Banespa is a further demonstration of
Santander Central Hispano's strong confidence in the Brazilian
market, and in the future of Banespa in the State of Sao Paulo,
the driving force of Latin America's largest economy.

Emilio Botin, co-chairman of Banco Santander Central Hispano,
said: "Step by step we are fulfilling the plans we have set out
for Banespa. Chairman Amusategui and I are extremely satisfied."


CESP: French Group Reiterates Interest In Pending Privatization
---------------------------------------------------------------
French power group Electricit, de France (EDF) on Friday
reiterated its interest in the forthcoming privatization of
Brazil's Cia. Energ,tica de Sao Paulo (Cesp), according to a
Brazil Financial Wire report. CESP is to go back on the auction
block on May 16 at the Sao Paulo Stock Exchange (Bovespa) with an
unchanged minimum price of R$1.74 billion, the original amount
set in December 2000 when the first auction attempt failed due to
a lack of bidders.

A previous TCR-LA report suggested that Spanish power group
Endesa is also carefully considering the privatization of CESP.
However, Endesa President Alfredo Lorente refused to confirm
whether Endesa plans to bid for the power generator in a
consortium or individually. He did say the Spanish company is not
interested in holding a minority stake in the Sao Paulo utility.


JOSAPAR: Registers R$19.93M Loss In 2000
----------------------------------------
Josapar, a major Brazilian rice processing company, saw a 217-
percent increase in losses, to R$19.93 million ending 2000, Valor
Economico reported last week. Josapar blamed its continuing
negative results on the poor rice crop last year, adding that the
number of "occasional brands" are increasing. The company sold
409,600 m tons of rice in 2000, an 11.4-percent decline from
1999. Sales stood at R$271.6 million with operating income of
R$263.6 million compared to R$331 million it posted in 1999. The
three-year restructuring program that the company concluded, saw
an increase of its processing capacity from 32,000 m tons to
42,000 m tons.



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D O M I N I C A
===============

LIAT LTD.: Union Discards Airline's Outsourcing Offer
-----------------------------------------------------
The Waterfront and Allied Workers Union (WAWU), representing LIAT
employees in Dominica, has rejected the airline's proposal for
outsourcing of services, Caribbean News Agency revealed Saturday.
The union believes that the offer, which is part of an agreement
to cut costs, is putting the employees' jobs at risk. In
addition, the union is also rallying other unions representing
staff of cash-strapped LIAT to stand against the move.

"We find that very unreasonable, after workers have been asked to
make sacrifices for the past three years -- and in some cases
more years -- that management should suddenly come up with that
kind of surprise to the workers," an unnamed Secretary-Treasurer
of WAWU related.



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

AEROMEXICO: Lost US$5 Million Due To Temporary Runway Closure
--------------------------------------------------------------
The closure of one of Mexico City International Airport's two
runways on March 19 through April 3 has caused Aeromexico 5
million dollars, according to Infolatina Friday. According to
reports, Aeromexico lost $400,000 daily from March 19 to March
30, and $100,000 daily from March 31 to April 3. The airline
announced it would request a refund of all losses incurred from
the temporary closure from the federal authorities, which operate
the airport.

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's services as financial
agent in the sale.


BANCRECER: HSBC Eyes Government-Intervened Bank
-----------------------------------------------
According to Bancrecer top executive Carlos Septien Michel, the
forthcoming sale of government-intervened Mexican bank Bancrecer
has attracted the interest of U.K.-owned Hong Kong Shanghai Bank
(HSBC), Infolatina reported Friday. Septien on Thursday revealed
that HSBC and five other firms, including Canadian-owned
Scotiabank-Inverlat and Mexico's Grupo Financiero Banorte had
expressed interest in bidding for the government-intervened bank.
The other three potential bidders were not disclosed, however,
Septien said that they included two U.S.-owned institutions and
one European firm. Bancrecer is to be sold fully capitalized and
minus its bad-loan portfolio.


GOODYEAR: Closes Tire Manufacturing Plant In Mexico
---------------------------------------------------
Goodyear Mexico today announced the immediate closure of its tire
manufacturing operation in Tultitlan, Mexico, because its high
costs are incompatible with current economic conditions.

A company spokesman said the company deeply regretted being
forced to make this decision despite intense efforts and
significant investments in order to improve productivity in
recent years. The spokesman also said that the company is looking
for opportunities to transfer some employees affected by this
measure to other facilities.

Goodyear Mexico's decision affects 1,559 employees who will
receive severance payments mandated by Mexican law. The plant
opened in 1941.

Goodyear will continue to supply products in Mexico, sourced from
other locations in North America, Latin America and Europe.

According to the company, other Goodyear non-tire facilities in
Mexico (San Luis Potosi and Chihuahua) which employ approximately
675 people, are not affected.


GRUPO VITRO: Recent Purchase Positioning For European Market
------------------------------------------------------------
Federico Sada, group director at the Mexican glassmaker Grupo
Vitro, believes that the group's purchase of a majority stake in
the Spanish company Cristalglass Vidrio Aislante SA will allow it
to position itself in Europe and further diversify its markets,
Reuters reported Friday.

"Through this acquisition, Vitro is taking an important step to
position itself in the European market and from there to grow and
diversify," Sada said, explaining that Vitro aims to balance the
risks of different markets and diversify its business portfolio
with such buys.

"We feel it is important for Vitro to have a balance in the
portfolio in other regions, to have access to capital in euros,
with other preferential rates and to have a presence in (Europe)
producing products directly in the future," he added.

On Wednesday, Vitro bought a 60-percent controlling stake in
Cristalglass, which makes flat glass for the construction
industry and has annual sales of close to $60 million. The
transaction, which value was not revealed, is due to be
formalized on April 30, and will be financed by Vitro's unit
Vidrio Plano. The acquisition of Cristalglass was part of Vitro's
business plan to redirect its efforts towards growth in strategic
segments such as flat glass, household products and glassware
instead of focusing on reducing its debt. The group currently has
debts amounting to $1.6 billion.


GRUPO SIDEK: Concludes Purchase Of Grupo Simec
----------------------------------------------
Grupo Simec, S.A. de C.V. (Amex: SIM) announced today that on
March 30, 2001, Grupo Sidek, S.A. de C.V. consummated the sale of
its entire approximate 62% controlling interest in Grupo Simec,
S.A. de C.V. to Industrias C.H., S.A. de C.V. Additionally,
Industrias C.H., S.A. de C.V. acquired additional common shares
of certain of Simec's bank creditors that, in connection with the
transaction, converted approximately US$95.6 million of bank debt
into common shares of Grupo Simec at a conversion price
equivalent to US$3.87 per American Depositary Share. As a result,
Industrias C.H. holds an approximate 82% interest in Grupo Simec.


MOTOROLA: Denies Facing Serious Liquidity Problem
-------------------------------------------------
Motorola, Inc. (NYSE: MOT), today strongly denied a published
report that it might soon face a serious liquidity problem due to
its amount of outstanding commercial paper of $6.4 billion as of
December 31, 2000.

At the end of the first-quarter this year, Motorola said it had
cash and cash equivalents of $4.4 billion and $4.1 billion of
outstanding commercial paper. Through April 6, 2001, Motorola had
more than $4.5 billion in cash and cash equivalents and
outstanding commercial paper had been reduced to $3.1 billion.

"Motorola today is financially sound. Any suggestion or erroneous
report that Motorola faces a serious liquidity problem is simply
not correct and is not supported by fact," said Bob Growney,
Motorola president and chief operating officer. "Our entire
management team is highly focused on maintaining a strong balance
sheet and improving cash flow. We also have actions well underway
to improve our management of working capital."

In its annual proxy statement, filed on March 30, 2001, Motorola
stated that it had implemented significant cost reduction and
product simplification plans in 2000. These activities are
continuing in 2001.

Motorola also stated that the company "expects accounts
receivable to decline during 2001 as a result of its ongoing
efforts to improve accounts receivable management." The company
also "expects inventory levels to decrease during the year as it
continues to improve its supply chain management" and has
significantly lowered its anticipated capital expenditures.

Motorola also said it expects a very significant increase in
proceeds from the sale of investments and businesses during 2001
compared to 2000.

For example, Motorola has announced the receipt of more than $1
billion for the sale of several of its cellular operating
companies worldwide and expects to receive about $1.8 billion for
the sale of its cellular operating companies in northern Mexico
by the third-quarter of this year. Motorola also has available
liquidity under its existing credit facilities.

About Motorola:

Motorola, Inc. (NYSE:MOT) is a global leader in providing
integrated communications and embedded electronic solutions.
Sales in 2000 were $37.6 billion. Motorola Labs serves as the
advanced research arm of the company, focusing on leading edge
technologies for future products and product enhancements.
Motorola also actively licenses technologies developed in the
Labs to external customers.


SERFIN: External Auditor Rules In Favor Of Mexican Government
-------------------------------------------------------------
Accounting firm Mancera, S.C. Ernst & Young, the external auditor
hired to study the Serfin case, ruled that a claim to lower the
sale price of Grupo Financiero Serfin SA by $254 million had no
grounds, Bloomberg reported Friday. The ruling came after more
than six months of dispute between the Mexican Banking Insurance
Deposit Institute and Grupo Financiero Santander Mexicano over
the $1.56 billion price paid for Serfin. Shortly after taking
over the bank last May, Santander Mexicano asked authorities to
cut about $254 million from the sale price, claiming it had
discovered hidden liabilities in Serfin's books.

Santander Mexicano has already accepted the audit decision, said
the banking institute in a statement.




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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Information contained herein is obtained from sources believed to
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or balance thereof are $25 each.  For subscription information,
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