/raid1/www/Hosts/bankrupt/TCRLA_Public/010917.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

            Monday, September 17, 2001, Vol. 2, Issue 181

                           Headlines


A R G E N T I N A

AEROLINEAS ARGENTINAS: Bastos Updates Sale Process Information
CORMINE: Consultant Has Until Sep 29 To Deliver Info
MOULINEX-BRANDT: Bankruptcy Won't Affect Argentine Subsidiary
TITTARELLI VITIVINICOLA: Controller Renegotiates Creditors' Debt


B R A Z I L

EMBRATEL PARTICIPACOES: Threatens To Abandon Commitment
MINERACAO AREIENSE: Court To Decide On Minimum Price For Assets
VARIG: Finds Light In Rival Airline's Downfall


M E X I C O

AEROMEXICO/MEXICANA: US Economic Slump Results To 1H01 Losses
BANCO ATLANTICO: Bital's Acquisition Encounters Another Hurdle
GRUPO DINA: Closes Doors At Sahagun Plant
MEXICANA: Negotiations Fall Through As Workers Threaten Strike
PEMEX: Analyst Blames Taxes For Lack Of Investments, Upgrades
PEMEX: Oil Platform Workers Want Modifications In Labor Law


P E R U

PESQUERA NEMESIS: Creditors Meet On Debt-Restructuring Plan



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A R G E N T I N A
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AEROLINEAS ARGENTINAS: Bastos Updates Sale Process Information
--------------------------------------------------------------
Argentina's Infrastructure Minister Carlos Bastos commented on
the expected sale of Aerolineas Argentinas SA, controlled by the
Spanish Government, Bloomberg said Thursday.

"We understand that the transfer of shares and control (of
Aerolineas) will occur before the end of September. There are
still four groups in the running."

Aerolineas Argentinas filed for protection from creditors in July
in an effort to solve its financial woes.

The airline, 91.2-percent owned by Spanish state-owned holding
company SEPI, posted more than $360 million in losses last year
and is more than $900 million in debt.

After two of seven airline employee unions rejected SEPI's plans
for restructuring, the holding company decided to sell the
flagship carrier.


CORMINE: Consultant Has Until Sep 29 To Deliver Info
----------------------------------------------------
Mabromata y Asociados, the consultant in charge of winding up
Argentine province Neuquen's mineral company Cormine, now has
until September 29 to deliver information on the company's
properties, Business News Americas reported Thursday. The target
date was extended after the consultant missed the September 7
deadline. Details of all Cormine's properties as well as a
recommendation of which ones should be offered to the private
sector is expected in the report. The report is also designed to
advise about how to dispose of the properties either directly or
via public auction, a tender process or simply given away.

"They will no doubt hand it over on September 29, when [the
information] will be presented to the governor and the country's
mining undersecretary," according to Neuquen mining director
Martin Palacios.

After the presentation, the provincial government will decide how
to deal with each property, and will start working on
documentation for tenders. The provincial government aims to
transfer the whole lot to the private sector and liquidate the
company.


MOULINEX-BRANDT: Bankruptcy Won't Affect Argentine Subsidiary
-------------------------------------------------------------
The bankruptcy filing of French electrical appliances company
Moulinex-Brandt will not have an impact on Moulinex Argentina,
the joint venture created by the parent company of Moulinex and
the Argentinean company BGH in 1999, El Cronista said in a
report. The reason for this is that there is only a Moulinex
marketing division in Argentina, and the rest of the sales force
depends on BGH.

The plant closures announced by Moulinex will not affect the
supply in the local market either, says Moulinex Argentina. The
local branch imports products from Brazil, France, Mexico and
China. For 20 years, Moulinex's sales in Argentina were in the
hands of BGH, which imported and developed the brand until 1999
when the parent company decided to become partners with its local
distributor. In Argentina, Moulinex generates revenues of over
US$16 million and has nearly 15 percent in market share in the
small electrical appliances sector.


TITTARELLI VITIVINICOLA: Controller Renegotiates Creditors' Debt
----------------------------------------------------------------
Argentine winery Tittarelli Vitivinicola y Olivinicola has had to
call in the receivers to avoid bankruptcy, La Nacion reported
Thursday. The winery's controller, Sabores Argentinos, will have
to meet with the creditors in order to negotiate on approximately
8 million pesos in debt.

Sabores Argentinos acquired the winery from the Tittarelli family
in 1999, and has since invested in more expensive wines to
export. However, the upscaling strategy apparently didn't work
because of lack of adequate capital. In 1999, the company was
unsuccessful in its attempt to locate a financial partner.

The company's assets are valued at nearly 8 million pesos.
Tittarelli has 3 wineries, an olive oil manufacturing plant and
an olive plant along with 150 hectares of olive trees and
vineyards.



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B R A Z I L
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EMBRATEL PARTICIPACOES: Threatens To Abandon Commitment
-------------------------------------------------------
Due to the obligations imposed by the regulatory agency Anatel,
Embratel warned it would not enter the market for local service
as it is entitled to do in 2002, Valor Economico reported
Tuesday. Embratel, which currently offers long distance phone
service to Brazilians, argues that similar obligations are not
being imposed on the local service companies, which will be able
to enter the long distance market in 2001.

The disparity in requirements is viewed as prejudicial to
Embratel, as are the costs the company has to pay to the local
carriers for the use of their connections in order to complete
long distance calls. These costs, according to the company, are
80 percent to 100 percent over international standard.

For more information on the company's financial statements see:
http://www.bankrupt.com/misc/Embratel.doc


MINERACAO AREIENSE: Court To Decide On Minimum Price For Assets
---------------------------------------------------------------
The Minas Gerais state justice court was expected to give a
ruling last week regarding an appeal by the leading creditors of
Mineracao Areiense (Masa) to reduce the minimum price set in
court for the sale of the zinc miner's assets, according to a
report in Gazeta Mercantil Online.

The appeal is not only of interest to the leading creditors of
the company, which was declared bankrupt at the end of 1998, but
also to its former controller, the Barreto family.

Large mining groups interested in buying the assets will
be following the appeal closely. These mining groups include
Canada's South Atlantic Resources, Brazil's Votorantim and
Australia's BHP.

Masa's largest creditors include a pool of banks led by the Minas
Gerais development bank BDMG.


VARIG: Finds Light In Rival Airline's Downfall
----------------------------------------------
Brazilian airline Varig is now taking advantage of Argentine
airline Aerolineas Argentinas' demise, Valor Economico reported
Tuesday. Accordingly, Varig is making use of the opportunity to
introduce new flights from Sao Paulo and Rio to Mendoza, as well
as between Buenos Aires and Santiago. Pluna, the Brazilian
carrier's Uruguayan subsidiary, is also believed to be adding
more flights to Buenos Aires.

Varig itself is currently facing financial difficulties. The
company announced last month that its net loss ballooned to 509.1
million reais ($203.6 million) in the first half of the year, its
biggest six-month loss ever, due to soaring debt costs.



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

AEROMEXICO/MEXICANA: US Economic Slump Results To 1H01 Losses
-------------------------------------------------------------
Due to the US economic slump, which has subsequently impacted the
Mexican economy, Aeromexico and Mexicana registered millions in
losses for the first half of this year, said industry authorities
Thursday in a report released by Reuters.

Mexicana posted an operating loss of $42 million during the
period, while Aeromexico reported a loss of $42.4 million, the
National Chamber of Air Travel (CANAERO) said.

"The net loss at Mexicana was $33 million and at Aeromexico was
$21 million," a statement said.

Both airlines are owned by holding company Cintra, which is
majority-owned by the Mexican government.

Mexico's economy has been hit hard by an economic slump in the
United States, its main trading partner, which accounts for some
90 percent of its exports.


BANCO ATLANTICO: Bital's Acquisition Encounters Another Hurdle
--------------------------------------------------------------
Negotiations between Grupo Fianciero Bital and bank bailout
agency IBAP for the acquisition of Banco del Atlantico suffered
another setback, according to a report in Mexican financial daily
El Economista. Widow Celia Reyes has lodged legal proceedings
against Atlantico for payment of an exorbitant sum for the
supposed earnings of a minor investment.

The legal battle, which analysts have called absurd, is turning
out to be difficult for Atlantico, a bank formally owned by IPAB.
In fact, the legal battle is one of the factors obstructing a
final resolution to Bital's purchase of Atlantico from IPAB, a
deal basically agreed to more than three years ago. Finance
ministry's Jose Antonio Meade warned that the case is critical to
Bital because a losing verdict will mean a loss of more than 600
billion pesos.


GRUPO DINA: Closes Doors At Sahagun Plant
-----------------------------------------
Mexican bus and truck maker Grupo Consorcio Dina closed its plant
in the city of Sahagun, in the state of Hidalgo, according to a
report Wednesday in Mexican financial daily El Economista. The
employees of the plant, who have been notified of the closure
through the government's Conciliation and Arbitration Board,
reacted negatively to the move. They blocked the entrance to the
Labor Ministry and urged the intervention of Minister Carlos
Abascal to force the company to respect its collective labor
agreement, in which the company agreed to keep the plant open.
They accused Dina of violating their contract with employees.

Dina has been applying a strict program to reduce costs,
including the permanent closure of Dina Trucks and Composites,
and the cancellation of its listing on the Mexican Stock Exchange
(BMV). Analysts believe that Dina, which reportedly has debts of
more than $220 million, is close to bankruptcy.


MEXICANA: Negotiations Fall Through As Workers Threaten Strike
---------------------------------------------------------------
Mexico's second largest airline, Mexicana, and its flight
attendants have not reached an agreement so far regarding an
increase in wages, Reuters reported Wednesday. According to
Alejandra Barrales, union leader of Mexicana's 1,500 flight
attendants, the firm maintained its offer of a 5.8 percent wage
increase even though workers have rejected it. Workers are
demanding a 10.5 percent wage hike and threatening to strike.
Barrales said Mexicana representatives requested "24 hours to
form a plan" on wages to avoid a strike as of Sunday.


PEMEX: Analyst Blames Taxes For Lack Of Investments, Upgrades
------------------------------------------------------------
Jorge Perez Samano, an analyst at Casa de Bolsa BBVA Bancomer,
says that the excessively high tax burden paid into government
tax coffers for each gallon of gas is evidence of the federal
government's over-dependence on Petroleos Mexicanos (Pemex),
Mexico City daily Reforma said in a report Tuesday.

"The fact that Pemex gives up much of its income in taxes delays
investment in infrastructure that would permit it to improve the
products it produces, from basic petrochemicals, to secondary
petrochemicals to gasoline," said Perez. Mexican gasoline is very
cheap by international standards, but is also very low quality,
according to the analyst.

"Gasoline has an important price, and a rise in the price has a
direct impact on inflation, because almost everyone has to travel
by highway," he said.

Pemex is in dire need of cash to maintain oil levels and beef up
natural gas supplies, company officials said. Just recently,
Pemex Director Raul Munoz revealed that Pemex must find $33
billion for oil and gas exploration in the next five years or its
lucrative oil production -- now around 3.1 million barrels per
day (bpd) -- could tumble by one-third.


PEMEX: Oil Platform Workers Want Modifications In Labor Law
-----------------------------------------------------------
Disgruntled oil platform workers of Petroleos Mexicanos (Pemex)
are now seeking changes to the Federal Labor Law to establish
special conditions for oil platforms and similar structures,
Mexico City daily El Universal reported Tuesday. More than a
decade has passed since the labor rights and benefits of the
company's offshore oil workers have been neglected because they
are not part of the company's union.

Jose Luis Estrada Mayorga, president of the Association of
Mexican Offshore Engineers (AICAM), said several factors that are
outlined in the Federal Labor Law are not taken into account by
the company, while Pemex's own labor policies also leave them out
of the loop. The workers are not paid as administrators, although
they are the workers responsible for taking care of their rigs 24
hours per day, said Estrada.



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P E R U
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PESQUERA NEMESIS: Creditors Meet On Debt-Restructuring Plan
--------------------------------------------------------------
Creditors of Pesquera Nemesis were scheduled to meet last Tuesday
to approve the fishing company's debt management plant, Gestion
revealed in its report. The plan is aimed at refinancing US$16.73
million in debt over a 10-year plan. It will also see the company
reduce those debts by US$4 million through sales of assets.



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 and Edem
Psamathe P. Alfeche, Editors.

Copyright 2001.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
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