---

       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, May 9, 2001, Vol. 2, Issue 91

                           Headlines


A R G E N T I N A

ACINDAR: To Issue US$60M Worth Of Negotiable Bonds
AEROLINEAS ARGENTINAS: Refuses To Admit Employees Back To Work
LA CABALLERIZA: Calls In Receivers


B R A Z I L

BANESPA: To Invest R$10M To Reinforce Brand
CESP: Several Factors Raise Concerns Among Potential Bidders
FURNAS: Furnas, Eletronuclear Strategize Debt Payment To MAE
INDUSTRIAS KLABIN: Reports 1Q01 Financial Results


C H I L E

GENER: To Invest Gradually In New Projects, Says CEO


M E X I C O

ALO.COM: Novamedia Plans To Produce Spanish-Language Programming
BANCRECER: May Not Make A Bid Call This Week
CINTRA: Sale Postponement Seen Costly For IPAB
ENTREGAMOS: Venezuela's Enkamino Acquires Internet-Based Service
GOODYEAR: Confirms Mexican Plant Closure
GRUPO DINA: Owes Nafin At Least 40M Pesos
GRUPO SIMEC: Registers Net Loss Of US$3.85M In 2000
SAVIA: Announces Completion Of EMPAQ Subsidiaries Sale


     - - - - - - - - - -


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

ACINDAR: To Issue US$60M Worth Of Negotiable Bonds
---------------------------------------------------
Acindar, an iron and steel manufacturing company, will launch a
negotiable bond of US$60 million at a four-year term aimed at
canceling debts with financial institutions and raising operating
capital, South American Business Information reported Monday. The
amount is equivalent to the company's first quarter losses this
year, which stood at US$59 million. At the end of March, Acindar
closed the first nine months of its financial year 2000 with
losses of US$100.1mil. These losses double the US$47.2mil lost in
the previous year. The losses were caused by the company's
changes in its investment plan.


AEROLINEAS ARGENTINAS: Refuses To Admit Employees Back To Work
-=------------------------------------------------------------
Aerolineas Argentinas, which is owned by Sociedad Estatal de
Participaciones Industriales (Sepi), didn't heed the call of the
government to reinstate the 200 previously sacked technicians
back to work, Senior Union Official Claudio Morales said in an
AFX-Europe report Friday edition. The employees were not admitted
to Buenos Aires's Ezeiza and Jorge Newbery airports on the
grounds that no work was available for them, Morales related. The
move came two days after the government ordered Aerolineas to
take back workers it laid off and simultaneously ordered
technical staff to call off a strike that grounded flights as
part of a 10-day mandatory reconcilement process between
management and its staff.

In a related story, April salaries of Aerolineas' staff will not
be paid until May 22 due to its current financial trouble brought
about by the recent nine-day strike, union officials said.
Aeronautic Works Association secretary Ariel Basteiro said
workers will hold meetings to decide on their stance towards the
situation.


LA CABALLERIZA: Calls In Receivers
----------------------------------
La Caballeriza, the restaurant chain which specializes in
barbecued meat, called in the receivers, South American Business
Information revealed Monday. The move was provoked by several
factors, according to an unnamed company executive. These factors
include the decrease in consumption, financing cut by banks and
its ambitious expansion plan. The chain, which consist of six
restaurants, expanded through franchises between 1995 and 1999:
two in the Buenos Aires capital, two in Buenos Aires province,
one in Mendoza city and one in Rosario city which closed last
year. Some franchisers have also called in the receivers.
According to the executive, the company still operates but it has
to deal with its debt problems among suppliers, banks and the
Inland Revenue.



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

BANESPA: To Invest R$10M To Reinforce Brand
-------------------------------------------
Banespa announced plans to invest R$10 million for the
development of an advertising campaign at the Sao Paulo state in
order to reinforce its brand, South American Business Information
said Monday. Mr. Irlau Machado, an executive officer from the
bank, revealed that R$85 million will be invested for advertising
and promotion this year, R$15 million of which would be used to
sponsor sports events. According to the report, the agency Full
Jazz will handle Banespa's campaign.


CESP: Several Factors Raise Concerns Among Potential Bidders
------------------------------------------------------------
The major electric power groups, which intended to participate in
the bidding for Cesp Parana, are still reviewing their
participation in the tender to be held by mid May, South American
Business Information reported Monday. Concerns among the firms
were raised due to non-definition of the rules for the sector,
the delay in operations of MAE (Mercado Atacadista de Energia),
and the boom over the US dollar. U.S.-based AES, considered to be
one of the favorites by the market, is planning to quit since the
US board of Directors does not plan to acquire new assets in
Brazil where it already invested R$12 billion. Duke Energy and
EDP (Eletricidade de Portugal), on the other hand, are concerned
about the boom of the US dollar and its impact over Cesp's
indebtedness of R$8 billion being 80 percent in dollar.


FURNAS: Furnas, Eletronuclear Strategize Debt Payment To MAE
------------------------------------------------------------
Furnas Centrais Eletricas and Eletronuclear (Eletrobras
Termonuclear) announced they have outlined the strategy for the
payment of Furnas' debts with MAE (Mercado Atacadista de
Energia), South American Business Information said Monday.
Accordingly, the debt which reportedly amounts to more than R$570
million, will be paid with the 500Mw surplus of energy generated
by Angra 2, which is not included in its initial contracts.
Currently Angra 2 generates 1,300 Mw of energy. Furnas rendered
the same strategy last year, but MAE rejected it. Now, the
company will be benefited by the intervention of Aneel (Agencia
Nacional de Energia Eletrica) on MAE.

The Brazilian government plans to privatize Furnas by the first
quarter of 2002. According to reports, the sale plan has already
been drawn up and only a few details needed to be finalized, such
as the breaking up of the company and the payment of its debt
with the Energy Wholesale Market (MAE).


INDUSTRIAS KLABIN: Reports 1Q01 Financial Results
-------------------------------------------------
Industrias Klabin de Papel e Celulose SA, Latin America's largest
pulp and paper company, posted consolidated losses of R$79.75
million in the first-quarter of 2000, reversing profits of
R$37.69 million in the same period last year, according to a
Brazil Financial Wire report released Monday. The loss per share
was at R$0.08690. The pulp and paper company also registered a
31.4-percent increase in net revenues to R$535.93 million, while
gross profits amounted to R$216.73 million, a 19.14 percent
increase. Net financial expenses rose 855.41 percent, to R$233.23
million. First-quarter operating losses amounted to R$111.18
million, as compared to profits of R$81.72 million in the year-
earlier period. As of March 31, Klabin's net equity stood at
R$1.43 billion. Book value per share was R$1.56. Data are
consolidated.



=========
C H I L E
=========

GENER: To Invest Gradually In New Projects, Says CEO
----------------------------------------------------
Chilean power generator Gener, which is controlled by U.S.-based
power company AES, will invest gradually in new projects,
according to the advance definition of the sector's regulatory
framework, Gener CEO Andres Gluski said in a Business News
Americas report published Monday.  

"We have thermoelectric projects on file with completed
engineering and EIS, which means when we decide to invest we
won't be delayed deciding on localization, capacity and so
forth," Gluski said, refusing to provide more details.

"As and when authorities give us better signals of stability and
transparency in the regulatory framework we will finalize
investments and gradually increase output and investment
amounts," he added.

Commenting on the subject of telecom investments, Gluski said,
"the synergy does not exist to make investment in this sector
really attractive, as we are increasingly an electricity
generator without other assets, and our entry into distribution
is not planned for the moment."

Gener's sale of Argentine power assets to France's TotalFinaElf
is well underway, and currently, a due diligence is being
conducted, Gluski said. He further related that the operation
should be finalized this year, which will improve Gener's profile
and debt. He added that for future payment commitments, the
company is studying operations in the local market.



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

ALO.COM: Novamedia Plans To Produce Spanish-Language Programming
----------------------------------------------------------------
Novamedia Holdings, which controls Mexican multimedia production
company and web portal operator Alo.com, intends to produce
Spanish-language programming for U.S. Hispanic viewing audiences,
Reforma/Infolatina reported Monday. Accordingly, the company is
now in discussions with several U.S. television chains over its
plans. Alo.com plans to channel part of the proceeds of the
recent sale of a 40-percent stake in Novamedia into the
production of television series and movies. Bank of America
reportedly paid 45 million dollars for its stake in Novamedia.


BANCRECER: May Not Make A Bid Call This Week
--------------------------------------------
Contrary to a previous announcement, Mexican bank bailout agency
IPAB will probably cancel its plans to invite formal expressions
this week from potential bidders for government-intervened bank
Bancrecer,  Reforma/Infolatina reported Monday. One factor
causing the delay is the conflict between IPAB and Finance
ministry officials over the appropriate course of action with
respect to a 51-percent stake in a pension fund manager jointly
owned by Bancrecer and German firms Dresdner Bank and Allianz.
IPAB reportedly intends to offer Bancrecer's 51-percent stake in
the fund manager to all bidders, separately from the bank. The
Mexican Finance ministry, on the other hand, wants to allow
Dresdner and Allianz to exercise an option to boost their joint
49-percent stake in the fund manager by an additional 3.5
percent, thus furnishing them with majority control before the
remaining stake is auctioned to the highest bidder. IPAB expects
that if the German firms will be permitted to exercise the
option, it move would substantially reduce the agency's proceeds
from the sale of the stake.


CINTRA: Sale Postponement Seen Costly For IPAB
----------------------------------------------
Plans to sell the assets of government-owned Mexican airline
holding company Cintra likely will not push through until next
year due to pressures currently being imposed by the opposition-
controlled Mexican congress, Reforma/Infolatina reported Monday.
Mexican bank bailout agency IPAB, which owns a 51-percent stake
in Cintra, recently announced it would delay the sale for six
months, or until clear parameters had been established for
federal airline industry policy. This postponement is seen
costing a lot of money for IPAB, which this year had hoped to
garner a total of 20 billion pesos from asset sales. As a result,
the bank bailout agency is seen bringing forward plans to sell
other assets, such as companies Synkro and Latinlac.


ENTREGAMOS: Venezuela's Enkamino Acquires Internet-Based Service
----------------------------------------------------------------
Mexican Internet-based delivery service Entregamos
(www.entregamos.com) has been acquired by its fellow Internet-
based distribution service Enkamino (www.enkamino.com) of
Venezuela, Business News Americas reported Monday. The move comes
after Enkamino signed a letter of intent in the first quarter of
this year. The value of the transaction was not revealed.

Entregamos closed down definitively in Mexico last year after an
unsuccessful attempt to resolve financial problems. Entregamos
was founded in February 2000 by a group of Mexican Harvard
graduates and received an initial investment from Vineyard
Ventures investment fund, Latin Idea (www.latinidea.com), LLC
(www.llc.com), Sun Technology Investors (www.suntechnologies.com)
and Wasabi Fund (www.wasabifund.com).


GOODYEAR: Confirms Mexican Plant Closure
----------------------------------------
Goodyear, the US tire-maker, confirmed it is shutting down its
Mexican plant, which received investments of US$100 million,
South American Business Information said Monday. The unit, had
been producing 18,000 tires daily. Now, the tire manufacturer
wants to import tires from Canada or the United States at better
prices.

Goodyear reported a drop in first-quarter earnings resulting in a
loss, as it tries to cut jobs and reorganize operations to meet
significantly weaker demand. The company attributed the quarter's
loss, which excludes one-off items, to the continued decline in
tire and other product orders from the North American automotive
industry. Despite winning business following last year's
Firestone tire recall debacle, the rapid slowdown in the US
economy and its effect on vehicle production has hit Goodyear
hard.

Moreover, the company is facing a squeeze on margins because of
higher raw material costs and rising energy prices.


GRUPO DINA: Owes Nafin At Least 40M Pesos
-----------------------------------------
Struggling Mexican heavy-vehicle maker Dina owes the Mexican
state-run development bank Nacional Financiera (Nafin) at least
40 million pesos, reported Reforma/Infolatina Monday. Dina
originally secured the loan in a deal with Nafin and Mexican
federal research-and-development agency Conacyt and reportedly
used the loan to fund the development of a new cabin for its
trucks. The loan is denominated in inflation-indexed investment
units (UDIs), now worth about 50 million pesos, and matures in
the year 2004.


GRUPO SIMEC: Registers Net Loss Of US$3.85M In 2000
---------------------------------------------------
Grupo Simec, a Mexican steel products and construction materials
manufacturer, posted a net loss of US$3.85 million in 2000, as
compared to a net income of US$51.7 million in 1999, Business
News Americas reported Monday. Net sales dropped 6 percent to
US$235 million last year due to a 6 percent fall in prices in
real terms. Physical sales of 620,000t of basic steel products in
2000 were consistent with 1999's sales volume. Mexico's Grupo
Sidek completed the sale of its 62 percent controlling stake in
Simec to fellow Mexican conglomerate Industrias CH (ICH) on March
30. The amount involved was not disclosed, but the deal included
conversion of some US$95.4 million of bank debt to Simec shares
giving ICH an 82.5 percent interest in Simec.


SAVIA: Announces Completion Of EMPAQ Subsidiaries Sale
------------------------------------------------------
Savia S.A. de C.V. (NYSE: VAI) (BMV: SAVIA) today announced that
its subsidiary Empaques Ponderosa (BMV: EMPAQ) completed the sale
of Cartones Ponderosa, Ecofibras Ponderosa y Ponderfibers
Corporation to Organizacion Editorial Mexicana (OEM) for a total
consideration of US$285 million. The portion of the proceeds from
this transaction available to Savia will be applied to debt
payment.




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
written permission of the publishers.

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.


* * * End of Transmission * * *