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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, April 16, 2001, Vol. 2, Issue 74

                           Headlines



B R A Z I L

CVRD: Finalizes Agreement To Buy 100 Percent Of Ferteco
GLOBO CABO: Extends Consent Solicitation Period to May 2, 2001
LIGHT: To Make Contracts For The Purchase Of Additional Energy


M E X I C O

CHRYSLER: Schrempp Reports Progress On Restructuring Program
CHRYSLER: Schrempp Optimistic About Ending Case Within 12 Months
TELEVISA: Could Sell Stake In Estarbien To Partner
TELEVISA: Schedules Meeting On April 25 To Analyze Restructuring
VESPER: Brasil Telecom Conducts Due Diligence


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B R A Z I L
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CVRD: Finalizes Agreement To Buy 100 Percent Of Ferteco
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Cia. Vale do Rio Doce, the world's No. 1 iron ore exporter,
announced it is finalizing an agreement to acquire 100 percent of
ThyssenKrupp AG's Ferteco, Brazil's No. 3 iron ore miner.
Bloomberg reported Thursday that the deal is moving forward
although the company declined to reveal terms of the transaction.
Reportedly CVRD agreed to pay $780 million, quadrupling Ferteco's
listed book value.

CVRD outbid Australia's BHP Ltd. and others in the purchase of
Ferteco and, according to reports, the company agreed to pay
Dusseldorf, Germany-based ThyssenKrupp about $650 million in cash
and assume $130 million in Ferteco debt. CVRD's plan to buy
Ferteco is subject to approval by antitrust authorities in Brazil
and Europe. Some analysts said the company could run into
problems with authorities since it vies to control almost all of
Brazil's iron mining assets. ThyssenKrupp earlier hired UBS
Warburg LLC and Salomon Smith Barney Inc. to manage the Ferteco
sale.

Ferteco controls almost 4 percent of world iron ore shipments. It
produced almost 20 million tons of iron last year. Ferteco said
it has other assets to offer CVRD, including an iron pellet
plant, a port terminal in Sepetiba in Rio de Janeiro state and a
10 percent stake in a railway line linking Minas Gerais state
with Rio and Sao Paulo states. According to analysts, the company
has an estimated 2 billion tons of iron ore reserves.


GLOBO CABO: Extends Consent Solicitation Period to May 2, 2001
--------------------------------------------------------------
Globo Cabo S.A. (BOVESPA:PLIM4; NASDAQ:GLCBY; Latibex:XGLCP)
announced today that it has extended the expiration date for its
previously announced waiver solicitation in connection with its
US$185,000,000 12 5/8% Senior Guaranteed Notes due 2004 (the
"1996 Notes"), from 5:00 p.m., New York City time, on April 11,
2001, to 5:00 p.m., New York City time, on May 2, 2001.
In addition, Globo Cabo is extending the date of the waiver
payment from April 27, 2001 to May 4, 2001. As a result, and in
accordance with the terms originally announced, the waivers will
now become revocable prior to the newly extended expiration date.

As previously announced, the waiver solicitation includes an
offer to pay a waiver payment to holders who validly waive their
right to require the repurchase of the notes on June 18, 2001 at
a redemption price equal to 101% of the principal amount, plus
accrued and unpaid interest, if any. The waiver payment is equal
to US$7.00 for each US$1,000 principal amount of notes to which
such waiver relates. In all other respects, the terms of the
notes will remain the same, including the noteholder's right to
receive 105% of the principal amount of the notes on June 18,
2004.

Globo Cabo has decided to extend its existing waiver solicitation
as a result of a new, separate waiver solicitation it has
commenced in Brazil, which seeks termination of floating security
interests from holders of certain locally issued Reais-
denominated debentures. In accordance with Brazilian law, Globo
Cabo has given notice to its shareholders and to the holders of
the local debentures of meetings to be held on April 30, 2001, at
which the termination of the security interests would be voted
upon. Accordingly, in order to allow time for the conclusion of
its new Brazilian waiver solicitation, Globo Cabo has decided to
extend the existing waiver solicitation.

Globo Cabo has decided to seek the Brazilian waiver to eliminate
any ambiguity over the proper characterization of the floating
security interests as they relate to the 1996 Notes and notes
issued by Net Sul, Globo Cabo's consolidated subsidiary, in
October 1997. Globo Cabo believes that the terms of its local
debentures, including the related floating security interest, are
consistent with the terms of both the 1996 and the Net Sul notes;
nonetheless, Globo Cabo wishes to adopt a conservative approach
by terminating the floating security interest. For further
details regarding the Brazilian waiver solicitation, Globo Cabo
directs investors to review its Form 6-K that will be filed with
the Securities and Exchange Commission in due course.


LIGHT: To Make Contracts For The Purchase Of Additional Energy
--------------------------------------------------------------
Rio-de-Janeiro based electric utility Light is to make contracts
for the purchase of energy outside MAE (energy wholesale market),
according to Mr. Michel Gaillard, company chairman, in a South
American Business Information report released Thursday. Of the
total 1.3 million MW that Light needs, 900,000 MW were already
contracted. Mr. Gaillard revealed that with the purchase of
additional energy the company's expenses have grown by 30 percent
since early 2001.

In a TCR-LA report published late last month, Light announced
that it will take out a 3-year, US$150-million syndicated loan to
refinance R$200 million debts due this April. It has R$500
million in obligations coming due this year. At 2000-end, its
consolidated debt stood at R$4.95 billion, 63 percent of which
comprised dollar-denominated financial obligations.



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M E X I C O
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CHRYSLER: Schrempp Reports Progress On Restructuring Program
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Reporting on the progress of Chrysler's restructuring program,
Management board chairman Juergen Schrempp revealed that the
company's sales and distribution network has been restructured.
Meanwhile the unit currently has the lowest inventory levels
among competitors in the U.S., AFX-UK said in a report Wednesday.

"We have met our planned sales targets in the first quarter", he
said.

According to Schrempp, the reduction in Chrysler's workforce is
on time and pans this year to cut costs stemming from suppliers
have been completed. Schrempp reiterated that Chrysler would be
profitable again in 2002, with a 4 percent return on sales
planned in 2003. He also confirmed earlier forecasts that
DaimlerChrysler expects to post a first quarter operating loss of
between 0.8-1.0 billion euros excluding the 3 billion euros in
restructuring costs.

Schrempp has again denied persistent speculation about the
possibility of putting Chrysler up for sale.

"The Chrysler Group and our alliance with Mitsubishi are an
integral and essential part of our company's strategy. They are
not for sale," Schrempp said.


CHRYSLER: Schrempp Optimistic About Ending Case Within 12 Months
----------------------------------------------------------------
Juergen Schrempp, Chief Executive at DaimlerChrysler, is
optimistic that the lawsuit brought by U.S. investor Kirk
Kerkorian will be resolved with a year, Reuters reported
Wednesday. Schrempp has high hopes that the case will have a
positive outcome since it was unsubstantiated by the facts and
had no legal foundation.

Last year Kerkorian, who was then the third-largest shareholder
of DaimlerChrysler, sued the group's senior management for about
$8 billion. He accused the group of misleading Chrysler
shareholders at the time of the 1998 so-called merger of equals
between Daimler-Benz and the then-profitable Chrysler. He
demanded compensation for losses he had suffered due to the share
price decline since the deal, or a reversal of the merger.
Kerkorian has sold much of his holdings and now owns roughly one
percent of DaimlerChrysler's shares.


TELEVISA: Could Sell Stake In Estarbien To Partner
--------------------------------------------------
Mexican health site Estarbien (www.estarbien.com) was taken off
the air on March after owners Televisa and Grupo Saba failed to
reach an agreement regarding the amount of capital each of them
should invest, according to a Televisa executive in a Business
News Americas report. Failure to strike a deal within three weeks
will drive Televisa to sell its stake to Casa Saba as it is a
strategic move for them.

Partners Mexican wholesaler group Saba and media conglomerate
Televisa launched Estarbien on September 26 with an agreement to
contribute US$16.5 million to the portal, divided equally between
them. However, Casa Saba is now suggesting changes to contracts
without stating the exact nature.

Televisa is handling and financing all the costs of the
connection, staff and content, although the company has laid off
six people, and currently has a minimum workforce on content and
programming. February was a tough month for Televisa as analysts
and investors reacted negatively to its 4Q00 results, reporting
an US$81.3-million net loss for 2000. Consequently, the company's
shares fell 17 percent on the Mexican stock exchange February 20
and 22, while its ADR (American Depositary Receipts) dropped 18%
in New York.

"We are in a very difficult stage; Televisa's shares have been
hit very hard and the economic situation of the country has
affected us, not directly because we are a very solid consortium,
but it does affect us in the sense that we have to watch the
company and business in general," the executive said.


TELEVISA: Schedules Meeting On April 25 To Analyze Restructuring
----------------------------------------------------------------
In light of the present economic situation, the board of Televisa
has scheduled a meeting on April 25 in order to analyze the
restructuring of the business and changes to programming, El
Financiero/Infolatina reported Wednesday. Most likely, the budget
for the soap opera and entertainment section of the television
company will be defined at the meeting. Board members were asked
not to comment on probable staff cuts at the company but just
recently, Production Vice-President Jorge Eduardo Murguis
declared there would be no massive staff cuts at the network.


VESPER: Brasil Telecom Conducts Due Diligence
---------------------------------------------
Brasil Telecom is currently executing its due-diligence process
on the fixed phone services carrier Vesper, South American
Business Information reported Friday. Reportedly, Brasil Telecom
may choose for a non-bidding proposal and is interested in
acquiring the 34.4 percent stake owned by Bell Canada
International (BCI).

Vesper's major shareholders are VeloCom (49.4 percent), Bell
Canada (34.4 percent) and Qualcomm (16.2 percent). Recently,
these controllers reportedly rejected a $300-million takeover bid
from AES.




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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