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                   L A T I N   A M E R I C A

            Thursday, April 26, 2001, Vol. 2, Issue 82

                           Headlines



A R G E N T I N A

AEROLINEAS ARGENTINAS: Technicians Strike Protesting Plan


B R A Z I L

CESP: State Hopes To Get 50 Percent Premium Over Minimum Price
CVRD: Docenave To Open Data-Room For Solid Bulk Division


C H I L E

EDELNOR: General Manager Denies Talks With GasAtacama


C O L O M B I A

MINERCOL: Colombian Government Flip-Flops On Liquidation


M E X I C O

GOODYEAR: Registers $46.7M Loss In 1Q
SAVIA: In Discussions With Its Banks Over Liquidity Problems
SAVIA: Bionova Holding Restructures Its Technology Business
TELEVISA: Anticipates Drop In Advertising Revenue


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A R G E N T I N A
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AEROLINEAS ARGENTINAS: Technicians Strike Protesting Plan
---------------------------------------------------------
Technical personnel for Aerolineas Argentinas and Austral
launched an indefinite strike on Tuesday in protest against a
proposal by Spain's Sociedad Estatal de Participaciones
Industriales (SEPI) to restructure the two airlines, according to
an EFE report. Ricardo Cirielli, secretary-general of the
Aviation Technical Personnel Association (APTA), revealed that
the strike was called because some employees have already started
to receive lay-off notices. Aerolineas Argentinas and Austral,
which were privatized in 1990, are under SEPI's control. SEPI
agreed with the Argentine government in October on a plan to
restructure both companies in order to rescue the airlines from a
deep crisis marked by huge debts and operating losses. Three
unions of the airlines' cockpit crew and aviation technical staff
oppose the plan, which includes the capitalization of both
companies, rationing spending and increasing competitiveness.
With a combined work force of some 6,700 employees, Aerolineas
Argentinas and Austral post annual losses of $240 million and
accumulated debts of more than $900 million.



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B R A Z I L
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CESP: State Hopes To Get 50 Percent Premium Over Minimum Price
--------------------------------------------------------------
Sao Paulo state hopes to get a 50 percent premium over the base
price it is asking for CESP Parana, which is slated for
privatization on May 16, South American Business News reported
Tuesday. The controlling stake in the company will be offered at
1.74 billion reais ($770 million), or 48 reais per share. The
state's energy secretary, Mauro Arce, expected at least three
groups to bid for CESP. According to Arce, nine mostly foreign
energy firms expressed interest and have consulted the company's
privatization documents. But he said some of them might form
consortia to bid for the company.

"CESP's debt is very big and the companies may join forces for
the auction," Arce related.

Officials have said the winning bidder should be given the option
of putting off the payment of any premium until April 2002. The
interested parties have until May 3 to present the necessary
paperwork for the auction.


CVRD: Docenave To Open Data-Room For Solid Bulk Division
--------------------------------------------------------
Docenave (Navegacao Vale do Rio Doce S.A.) is to open its data-
room to four prospective bidders for its solid bulk division,
South American Business Information said Tuesday. Docenave is 99-
percent controlled by CVRD (Companhia Vale do Rio Doce).
According to Docenave CEO Mr. Alvaro de Oliveira Junior, this
division is no longer strategic for CVRD's mining activities.
Docenave will operate ship leasing and concentrate on coastal
trade transportation, towboat activities and port support. The
solid bulk water transportation has an annual turnover of US$260
million and represented 80 percent of Docenave's overall income
of US$320 million in 2000. The company transports almost 34
million m tons per year.

Docenave is one of Latin America's largest shipping companies. It
carries much of CVRD's iron ore to markets in Europe and Asia
aboard a large fleet of bulk carriers.



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C H I L E
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EDELNOR: General Manager Denies Talks With GasAtacama
-----------------------------------------------------
General manager at Chilean power company Edelnor, Ricardo
Falabella, contradicted rumors that the company is in discussions
with GasAtacama regarding the sale of its power transmission
facilities, South American Business Information reported Tuesday.
Mr. Falabella did, however, admit that Edelnor, which is
currently battling cash flow problems, is interested in selling
off some dispensable assets. GasAtacama earlier expressed
interest in acquiring power transportation substations in the
Norte Grande system, and hasn't ruled out possibilities for the
Mejillones III thermal power plant in the II Region.

Struggling Edelnor was obliged to sell its building in
Antofagasta. The company's future is closely tied to the use of
petcoke as fuel for power generation.



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C O L O M B I A
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MINERCOL: Colombian Government Flip-Flops On Liquidation
--------------------------------------------------------
Senator Amilkar Acosta, one of the members of the Senate
committee handling the talks over Minercol's future, revealed
that the Colombian government has put off plans to liquidate the
state mining company, Business News Americas said Monday.

"Instead, the government has accepted a proposal to study a
possible restructuring of the company to make it financially
viable," he said, adding that interesting changes are now taking
place at the company.

"A fresh outlook has opened up thanks to the efforts of the new
minister of mines and energy," Acosta related. He anticipates
that a decision would be taken shortly as Minercol's future and
the new mining code now being drawn up are closely linked.



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M E X I C O
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GOODYEAR: Registers $46.7M Loss In 1Q
-------------------------------------
The Goodyear Tire & Rubber Co. posted a $46.7-million loss in the
first-quarter of this year, and disclosed plans to cut an
additional 600 jobs, according to an Associated Press report
published Tuesday. Previously, the company expected to slash
7,200 jobs during this year. It confirmed Tuesday that it has
dismissed some 2,800 employees in the first quarter and now
expects the total reduction for the year will reach at least
7,800, about 7 percent of its work force.

"The continued decline in orders for tires and engineered
products by auto and truck manufacturers in North America had a
substantial impact on our results," said Samir Gibara, Goodyear
chairman and chief executive. According to him, the company has
been reducing its production to bring inventory in line with
projected sales by the end of June. Rod Lache, an analyst who
covers Goodyear for New York-based Deutsche Banc Alex Brown,
finds the report favorable despite the loss.

"Goodyear is gaining significant market share in North America.
Secondly, it sounds like the price increases they rolled out in
January are still sticking. It also looks like the cost savings
from restructuring are starting to pay off," he said.


SAVIA: In Discussions With Its Banks Over Liquidity Problems
------------------------------------------------------------
Savia S.A. de C.V. (BMV: SAVIA, NYSE: VAI) announced today that a
temporary liquidity problem has required discussions with lender
banks regarding the terms and conditions of the Company's
financial obligations.

Bernardo Jimenez, Savia's Chief Financial Officer, noted: Excess
investments in Seminis stretched our resources and created this
issue. However, Savia's Group companies have sufficient
resources. In addition, Savia's affiliate, Empaques Ponderosa,
recently sold three of its own subsidiaries. As soon as the
proceeds from this sale become available to Savia, they will be
applied to debt payment. The important issue now is time, and an
extension is being discussed with our banks.

The current problems affecting Savia were caused primary by
excess investments in agro technology. In addition, Seminis'
results were impacted by a slower than expected integration
process of its acquired businesses, averse climate conditions and
foreign exchange losses.

These circumstances have driven Savia to a temporary liquidity
shortfall, which the Company is currently in the process of
resolving.

Savia (www.savia.com.mx ), is a diversified group of companies
strategically oriented toward leadership and to the creation of
value. Savia participates in industries that offer high growth
potential in Mexico and abroad. Among its principal subsidiaries
are: Seguros Comercial America, the largest insurance company in
Mexico and Seminis, global leader in the production and marketing
of fruit and vegetable seeds.


SAVIA: Bionova Holding Restructures Its Technology Business
-----------------------------------------------------------
Bionova Holding Corporation (Amex: BVA) announced today a
restructuring of its technology business in Oakland. The two
primary components of this restructuring involve refocusing the
strawberry growing and development operations contained in
Bionova Holding's subsidiary VPP, and a significant reduction in
the staffing of the company. The Company stated that these
actions are being taken to conserve cash resources while the
technology group continues to concentrate on the development of
its trait genomics platform and seeks to develop new sources of
funding and strategic options for its technology business.

Company officials explained that refocusing the strawberry
business will save more than $1 million in 2001, and could even
generate some funds if the breeding assets can be sold to third
party growers. When the reduction in staffing is completed in
June, the technology group will be reduced to 29 employees from
its current level of 72, and the annual payroll will fall by more
than $2.5 million. Core scientific staff will focus on the
development of key technologies essential to Bionova Holding's
proprietary position in the functional genomics space. All
employee-related expenditures are being reduced in a
corresponding manner, and the Company plans to significantly
reduce overhead and its facility expenses. Special charges will
be recorded in the second quarter of 2001 to write down certain
assets of the strawberry business and for severance costs
associated with the employees being separated.

Beyond the short-term savings these actions will generate, the
primary goal of this restructuring is to reduce the annual cash
burn rate of the technology group to a level no greater than $3
million. In conjunction with an estimated $1 million of corporate
overhead on a per annum basis, Bionova Holding will be seeking to
raise this level of funding for 2002 and beyond. To this end the
Company is in the process of retaining an investment advisor to
help it evaluate its alternatives.

Bionova Holding also announced that Jorge Fenyvesi, President of
DNA Plant Technology Corporation and an executive vice president
of the company, will be leaving DNAP in early May to assume new
responsibilities in affiliated companies of the parent group. Dr.
Peter Davis, a director of Bionova Holding, will be taking on the
responsibility of President of DNA Plant Technology. The Company
also stated that Eugenio Najera had resigned his position as a
director of Bionova Holding in March due to other commitments.
Bionova Holding Corporation is a leading biotechnology company
focused on genomics-based trait development for plant
agriculture. Bionova Holding's goal is to deliver crop protection
and human nutrition traits through high-efficiency gene
profiling, bioinformatics, and expertise in plant biology.
Bionova Holding and its affiliates have strategic alliances and
licensing agreements with some of the world's leading
agricultural companies, value-added producers and marketers, and
biotechnology research groups. Bionova Holding Corporation is
majority owned by Mexico's Savia, S.A. de C.V. (NYSE: VAI), whose
subsidiaries include Seminis Vegetables Seeds, Inc., the world's
largest vegetable seed company.


TELEVISA: Anticipates Drop In Advertising Revenue
-------------------------------------------------
Televisa, Mexico's largest media empire, is most likely to see a
fall in advertising revenue in the first-quarter of this year,
according to a South American Business Information report
published Tuesday. Advertising revenue slowed in the last quarter
of 2000 and the cost-cutting efforts will not show up on balance
sheets until the second quarter of 2001. Experts believe that the
firm reacted slowly, with EBITDA likely to drop from last year's
27 percent to 22 percent (Pesos$1.008 billion) in the first
quarter of this year. Production costs, however, are expected to
grow because of new soap operas.




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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