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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, April 25, 2001, Vol. 2, Issue 81

                           Headlines


A R G E N T I N A

BOATING: Notifying Receivers
WINSTAR COMMUNICATIONS: Weiss & Yourman Announces Suit
WINSTAR COMMUNICATIONS: Lawfirm Files Class Action Suit


B O L I V I A

EL MUTUN: Bank To Take Charge Of Sale Process


B R A Z I L

BANESPA: Employees Protest Restructuring Proposal
COPERSUCAR: Concludes Restructuring Process
CVRD: Cenibra Stake Will Hit Auction Block May 11
VASP: Restructuring Yields Good Results


C H I L E

TELEX-CHILE: BOD Postpones Shareholders Meeting


M E X I C O

AEROVOX: Engages Investment Banker
BUFETE: Debt Repayments Will Begin
CHRYSLER: Demand Spurs Production of PT Cruiser
GRUPO DINA: Agreement Reached To Reduce Labor Force
GRUPO SIDEK: Announces Steadfast Default
SPORTSYA!: Signs Deal With AOL Mexico
TELEVISA: Shareholders Say ECO Closure Not Enough


V E N E Z U E L A

SIVENSA: Talks To Rescue Orinoco In Progress

     -  -  -  -  -

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A R G E N T I N A
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BOATING: Notifying Receivers
----------------------------

Argentinean company Boating, which specializes in the production
of shoes and clothing for sailing, is calling in receivers, South
American Business Information said Monday.

Boating has debts with 11 banks totaling almost US$4 million,
excluding the US$1.9 million it owes to its main creditor Banco
Supervielle. Boating's expansion process in the markets of
Paraguay, Uruguay and Brazil will be put off. Boating recently
found a partner, and was planning to launch its first franchise
to establish the brand, in Paraguay.

In Uruguay, negotiations with the investment group Montevideo for
a master-franchise of the brand were also underway. Boating's
main project was its expansion in Brazil. Boating has one plant
in Argentina and is owned by the Garone family, who plans to
reach a US$22 million turnover this year. The company has 20
shops in four cities in Argentina.


WINSTAR COMMUNICATIONS: Weiss & Yourman Announces Suit
------------------------------------------------------

In a public announcement, Weiss & Yourman stated a class action
lawsuit against Winstar Communications, Inc. ("Winstar" or the
"Company") (NASDAQ:WCII) and its senior executives commenced in
the United States District Court for the Southern District of New
York. The suit was filed on behalf of investors who purchased
Winstar securities from August 2, 2000 through April 2, 2001 (the
"Class Period"). Your rights may be affected.

The complaint charges defendants with violations of the
Securities Exchange Act of 1934 and Rule 10b-5 promulgated
thereunder. The complaint alleges that defendants issued
materially false and misleading financial information and failed
to disclose materially adverse information that misrepresented
the Company's financial condition and prospects.


WINSTAR COMMUNICATIONS: Lawfirm Files Class Action Suit
-------------------------------------------------------

The following notice is issued by the law firm of Cohen,
Milstein, Hausfeld & Toll, P.L.L.C., on behalf of its client, who
filed a lawsuit April 23, 2001 in the United States District
Court for the Southern District of New York, on behalf of
purchasers of Winstar Communications, Inc. (Nasdaq:WCIEQ)
securities during the period between August 2, 2000 and April 2,
2001 (the "Class Period").

The complaint alleges that defendants violated sections 10(b) and
20(a) of the Securities Exchange Act of 1934 ("Exchange Act") and
Rule 10b-5 promulgated thereunder, by issuing a series of
material misrepresentations to the market during the Class
Period, thereby artificially inflating the price of Winstar
securities. Specifically, the complaint alleges that the
defendants made material misrepresentations and omissions of
material facts concerning the company's business performance
throughout the Class Period.

According to the complaint, throughout the Class period
defendants repeatedly assured investors that the company was
performing well, that the company was enjoying strong growth, and
that it was well-funded to follow its growth-oriented business
plan through the first quarter of 2002. At the same time,
however, the complaint alleges that the defendants knew or
recklessly disregarded that Winstar was overstating its revenues
and assets. On April 5, 2001, contrary to prior representations,
Winstar announced that it was halting its expansion plans and
laying off 2,000 employees. On April 2, 2001, the Company
disclosed that it would be filing its annual Report on Form 10-K
late. The decline in the value of Winstar common stock has been
extraordinary, with the stock closing at $0.40 per share on April
6, 2001. The stock traded as high as $32.00 per share during the
Class Period. The Company is now in bankruptcy.



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B O L I V I A
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EL MUTUN: Bank To Take Charge Of Sale Process
---------------------------------------------
According to state mining company Comibol spokesperson Rolando
Ibanez, the investment bank chosen to handle Bolivia's sale of
its El Mutun iron ore deposit will be the sole body in charge of
the process, Business News Americas reported Monday.

Ibanez was responding to a recent report suggesting that the
Santa Cruz municipal authority has received a direct offer from
Brazilian iron company Sidertur to install a 300,000tpy pig iron
factory to work part of the Mutun deposit. Comibol will receive
inquiries from interested companies and pass them on to the
investment bank advisers, he added.

"Earlier we made contact with three Brazilian companies
interested in constructing blast furnaces to produce pig iron ...
and in this case this company [Sidertur] could participate. But
it would not have priority, and what is more it will be the bank
that suggests the best alternative and not Comibol," he
explained. Currently, five banks have shown an interest in taking
on the advising role and Comibol plans to publish a shortlist
this week.



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B R A Z I L
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BANESPA: Employees Protest Restructuring Proposal
-------------------------------------------------
Employees of Brazilian bank Banespa, controlled by Spanish bank
Banco Santander Central Hispano SA (BSCH), reacted with massive
protests against the proposed restructuring plan. Santander will
implement the plan at the formerly state-owned bank, El Pais
reported Monday. The Brazilian banking union has called a strike,
in which up to 10,000 employees are expected to participate. This
could result in the closure of some 80 branches.

According to Edson Carneiro Indio, trade union spokesman, his
group will not allow the Spanish to come and increase
unemployment in the country. Those workers that openly support
the plan by April 25 will receive a bonus of a maximum eight
times their monthly wage as well as those rights set out in the
collective wage bargaining agreement. The majority trade union in
BSCH, CCOO, demanded that the bank withdraw its plan, which it
considers "brutal" and "unacceptable".


COPERSUCAR: Concludes Restructuring Process
---------------------------------------------
The restructuring program at Copersucar, a 30-company
cooperative,  is at completion, South American Business
Information said Monday. The process, handled by consulting firm
Pricewaterhouse Coopers, was implemented in September 2000.

So far 100 workers have been dismissed, and there is speculation
that in a few months, cuts will affect 500 employees. At present,
Copersucar has 2,200 employees in its facilities at Sertaozinho,
Sao Paulo and Piedade, Rio de Janeiro state. A similar program
will be implemented at its facilities in Pradonopolis, and
Iracenopolis, both at Sao Paulo, managed by Homero Correa de
Arruda Filho, the CEO of Copersucar. The program has allowed
Copersucar to reduce annual costs estimated at R$20 million.


CVRD: Cenibra Stake Will Hit Auction Block May 11
-------------------------------------------------
Companhia Vale do Rio Doce (CVRD), the largest world producer and
exporter of iron ore, announced it would sell off its 51.48
percent stake in Cenibra via a sealed-bid auction on May 11, AFX
Europe said Monday. Only three companies have remained firm with
their interest in the acquisition of the stake, namely, Aracruz
Celulose SA, Votorantim Celulose e Papel SA (VCP) and UPM
Kymmene. Cia Suzano de Papel e Celulose and Stora Enso have
withdrawn from the bidding process.


VASP: Restructuring Yields Good Results
---------------------------------------
The Brazilian air transportation company Vasp posted a net profit
of R$114.4 million in 2000, outperforming the 1999 loss of R$92
million, South American Business Information reported Friday.

VASP says the good performance can be attributed to its recent
restructuring process. Vasp had to undertake an extensive
restructuring process last year in order to continue its
operations. It slashed its workforce by 50 percent, suspended
international flights and cancelled almost all its leasing
contracts.

The Brazilian airline now owns 27 of the 32 aircraft it operates.
Turnover declined by 26 percent to R$994 million due to the
suspension of its routes to Europe, the US, and Buenos Aires.
Short-term debts fell from R$329 million to R$240.9 million,
while long-term debts fell by 24 percent to R$2.05 billion. Vasp
carried over 4 million passengers in 2000 and raised its sales by
12 percent in the second half of the year.



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C H I L E
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TELEX-CHILE: BOD Postpones Shareholders Meeting
-----------------------------------------------
The board of directors of Chilean telecoms holding Telex-Chile
has postponed to May 25 the extraordinary shareholders meeting.
Originally the meeting was set for April 27, according to a
Business News Americas report Monday issue. The shareholders will
likely talk about the sale of Telex's main asset, long distance
and network subsidiary Chilesat, as well as a US$60 million
capital increase.

On April 6, the Telex board issued a statement to the SVS
recommending the sale of Chilesat in order to meet its financial
obligations. Telex's charter stipulates that the sale of a
strategic asset requires the approval of at least 90 percent of
shareholders. According to reports, Telex's worsening financial
situation has caused creditors, who own 51 percent of the
company, as well as its minority shareholders, to look for exit
strategies in an attempt to salvage part of their investment in
the company.



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M E X I C O
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AEROVOX: Engages Investment Banker
----------------------------------

Aerovox Incorporated (Nasdaq.NM:ARVX) today announced that it has
engaged Loeb Partners Corporation to assist management in
developing and executing strategic alternatives for the Company.

Robert D. Elliott, president and CEO, said "Our decision to
retain an investment banking firm comes in the wake of an
exceedingly difficult year in which the Company was required, for
environmental reasons, to move to a new facility in New Bedford,
Massachusetts. Simultaneously, we consolidated our three Mexican
plants into two. In spite of the fact that we accomplished these
huge undertakings with minimal or no impact to our customers, the
costs associated with the EPA-mandated move have strained
Aerovox's financial condition.

Loeb Partners will assist us in pursuing all available strategic
alternatives while our operating personnel ensure that customers
continue to receive outstanding responsiveness and timely
delivery of our quality products.

Earlier last week, Aerovox announced a profit for the first
quarter of 2001. We are encouraged by our recently released first
quarter results, which showed 15% higher earnings before interest
and taxes (EBIT) on 7% lower sales compared with the first
quarter of 2000," Elliott added.


BUFETE: Debt Repayments Will Begin
----------------------------------
Struggling Mexican construction firm Bufete Industrial has agreed
to complete its financial restructuring before the end of April,
Business News Americas reported Monday. Serbo Industrial
conglomerate Corporativo Serbo officially took control of the
firm last week. According to Serbo president Sergio Bolanos, as
new owner of Bufete, he would involve the company in one of
Serbo's contracts, the construction of a secondary petrochemicals
plant in Altamira port, Tamaulipas state, costing some US$4.5
billion. Bufete is to begin repaying its approximately US$450
million in debts in May or June. Repayments have been suspended
since mid-2000.


CHRYSLER: Demand Spurs Production of PT Cruiser
-----------------------------------------------

In response to continued worldwide demand for the Chrysler PT
Cruiser, the Chrysler Group will again produce one of its most
innovative, segment-defining products by increasing the output of
its Toluca Assembly Plant in Mexico by 80,000 units annually.

The success of the PT Cruiser carries on the Chrysler Group's
tradition of inventing -- and leading -- new product segments,
said Dr. Dieter Zetsche, Chrysler Group President and CEO. The
added production will help close the gap between supply and
customer demand for this highly versatile vehicle.

"Among the many scenarios we studied to gain incremental volume
of PT Cruiser, this was the best business decision," Zetsche
added. This is another example of our continued investment in
innovative products that represent the strength and future of
this company.

Chrysler will invest $300 million to increase output by 80,000
units at Toluca beginning in the autumn of 2002. However, North
American customers should notice more PT Cruisers at dealerships
this summer because all of Toluca's current production capacity
of 180,000 vehicles will be allocated to North American markets.
The Chrysler PT Cruiser's second production site, the company's
Eurostar facility in Graz, Austria, will build 50,000 units for
international markets. By the end of 2002, total PT Cruiser
production will reach 310,000.

"Toluca is in the best position to increase production to help
meet the continued North American demand, while Eurostar will
support Europe and other international markets," said Gary
Henson, Executive Vice President of Manufacturing. "In order to
react quickly to the demands of our customers, we need the
ability to maximize opportunity among our worldwide operations."

Since the market introduction in March 2000, Chrysler has sold
more than 175,000 Chrysler PT Cruisers worldwide, and received
more than 25 international awards. The vehicle is sold in 58
countries around the world.

Chrysler Group announced plans to add Eurostar as a second PT
Cruiser production site in March 2000 -- just weeks before the
first vehicles arrived to dealerships. The Eurostar facility,
which also produces the Chrysler Voyager, is currently building
prototype PT Cruisers, as it prepares to launch the vehicle this
summer. Work will begin immediately in Toluca in preparation for
the autumn 2002 line-speed increase.


GRUPO DINA: Agreement Reached To Reduce Labor Force
---------------------------------------------------

Consorcio G. Grupo Dina, S.A. de C.V. ("Dina"), a Latin American
truck producer, announced on April 17th that it has reached an
agreement with the Union of Independent National Automobile
Industry Workers that will conclude the labor conflict associated
with the earlier threat of a strike at its truck division.

After more than two months of negotiations a deal was struck, and
the threat of a strike has been lifted. The basic terms of the
settlement include an ongoing shutdown of the plant through
October 31, 2001, a 40% reduction in the 506-person work force,
and payment of 48% of regular pay with certain benefits to the
remaining workers. These workers will also receive an 8% wage
increase.

Gamaliel Garcia, Dina's CEO, stated "This is a temporary measure
while we continue to search for alternative ways to reactivate
production. We regret having to lay off any workers, but it is
unavoidable in order to stabilize our financial condition and to
survive our present difficulties."

Dina has repeatedly stated that the unilateral termination of its
contract with Western Star to supply them with 9,000 units over
the next three years, together with the contraction of both the
total market in North and South America and Dina's own share, has
necessitated the cutbacks in production and staffing.

Mauricio G. Mendoza, Dina's legal counsel, reported that the
company's $110 million legal claim against Western Star that was
filed on October 27th, 2000 is pending and that arbitrators have
already been selected.

Gamaliel Garcia noted that the agreement with the Union is the
result of the willingness of all parties to continue with a
relationship that provides the workers with a fair contract.


GRUPO SIDEK: Announces Steadfast Default
----------------------------------------

Grupo Sidek, S.A. de C.V. (OTC-GPSAY and OTC-GPSBY) ("Grupo
Sidek") announced today, in connection with the sale of eight
hotels contracted with AMX Resort Holdings, LLC., a subsidiary of
Steadfast Properties & Development, Inc. ("Steadfast"), that
despite the continuous efforts of Grupo Sidek to close the
transaction in accordance with the terms and conditions agreed
upon by the parties, Steadfast defaulted again in its obligation
to acquire the hotels and pay the corresponding price agreed
upon. Grupo Sidek shall take the necessary steps to protect its
interests and to comply with its contractual obligations,
including the sale of such hotels in accordance with the terms of
the agreements entered by it with its financial creditors.


SPORTSYA!: Signs Deal With AOL Mexico
-------------------------------------
Sportsya! and AOL Mexico have signed an Internet portal content
alliance whereby AOL Mexico will gain in sports information and
news, both national and international, from the market leader,
South American Business Information reported Monday. The deal is
expected to hasten up navigation times for sports fans among AOL
Mexico users.

Meanwhile, Terra Networks, the internet subsidiary of Spanish
telecommunications giant Telefonica SA, is negotiating the
acquisition of the majority stake in internet portal SportsYa!.

SporstYa ceased its Argentinean operations and phased out its
Brazilian SportsJa site last month. In February, it was rumored
to be on the verge of bankruptcy due to its financial situation.
Executives disputed the rumors, saying that Sportsya! has
reoriented its activities toward the traditional media business,
producing television programs and promoting live sports events.


TELEVISA: Shareholders Say ECO Closure Not Enough
-------------------------------------------------
Grupo Televisa's move to shut down TV News Channel ECO has failed
to alleviate shareholders' doubts, Reforma/Infolatina revealed
Monday. Shareholders and investors want to see more cost-cutting
and improved earnings at the media company.

"We've seen the first steps, but Televisa investors and
shareholders want to see where the company plans to go and
whether it's planning cuts in areas that aren't productive," said
Victor Hugo Flores, an analyst at Mexico City brokerage
Interacciones. "For Televisa, this is an opportunity to
restructure itself - not only with new colors in its logo but
real change inside the company," he added.

However, Pablo Ruiz, an analyst at BBVA Bancomer, warned that
Televisa is a large corporate entity and cannot slash costs
overnight. Ruiz said the plan at Televisa was to begin by making
its corporate structure less bureaucratic and more efficient.

Around 900 Grupo Televisa employees are expected to take
voluntary redundancy packages or face firing at the end of the
month. The majority of the job cuts are to be made in the
company's corporate division, principally in administration and
finance.



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V E N E Z U E L A
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SIVENSA: Talks To Rescue Orinoco In Progress
--------------------------------------------
According to Spokesperson Isabel Camejo, confidential talks
between potential investors, banks, state bodies and the co-
owners of Venezuela's Orinoco Iron plant are underway, Business
News Americas said Monday. Camejo works for Caracas-based iron
and steel group Sivensa, owner of a 50-percent stake in Orinoco
through its International Briquettes Holding (IBH) division.

"They are talking about the form, or scheme, for the injection of
working capital needed to keep Orinoco Iron operating. It's
impossible to say how long the talks will take," she said.

Among the parties involved in the discussions is Venezuela's
state heavy-industry holding CVG, which has a stake in IBH and
supplies iron ore to Orinoco via its Ferrominera division and
power via its hydro-electric company Edelca.

"Apart from its own interests, CVG is interested in helping
Orinoco because of the jobs it creates and contribution it makes
to the development of the Guayana region," Camejo added.




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
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Information contained herein is obtained from sources believed to
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