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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

          Friday, August 22, 2003, Vol. 4, Issue 166

                          Headlines


A R G E N T I N A

BANCO BANSUD: Moody's Raises LTFC Deposit Rating to Caa2
BANCO FRANCES: Foreign Currency Deposit Ratings Upgraded To Caa2
BANCO DE GALICIA: Moody's Affirms FC Debt Rating at Ca
BANCO HIPOTECARIO: FC Deposit Rating Upped to Caa2 From Ca
BANCO HIPOTECARIO: Confidence Improves on US$1.2B Bond Swap

BANCO DE LA CIUDAD: LTFC Rating Raised to Caa2
BANCO DE LA NACION: Moody's Ups FC Deposit Ratings to Caa2
BANCO DE LA PROVINCIA: LTFC Deposit Rating Raised to Caa2
BANCO RIO: Moody's Ups Ratings Following Upgrade on Argentina
BANKBOSTON N.A.: Moody's Rates FC Deposit Rating Caa2

BERETTA HERMANOS: Creditor Claims Verification Ends Today
CITIBANK N.A.: Moody's Raises FC Senior Debt Rating to Caa1
DIRECTV LA: Raven Media Responds to Recent Motion
DEPLI: Receiver Wraps Up Claims Authentication Period
GRADIA: Proofs of Claim Due No Later Than Today

HSBC BANK ARGENTINA: Moody's Raises FC Deposit Rating to Caa2
INSTITUTO DON JAIME: Receiver Prepares Individual Reports
INTEGRAL FARM: Individual Reports Due Today
LOMA NEGRA: Argentine S&P Assigns Default Ratings To Bonds
MIDAN: Deadline For Claims Filing Expires Today

NAHUELSAT: Reaches Debt Accord With Creditors
NUTRICION: Organizational Meeting Set for Today
PAN AMERICA/PETROBRAS ENERGIA: Moody's Ups Ratings to Caa1
TELEFONICA DE ARGENTINA: Places New Bonds Worth US$189.70M
* Moody's Assigns Ratings To BODENs, Pagares Issued By Argentina


B E R M U D A

TRENWICK GROUP: Files U.S. Chapter 11 Bankruptcy Proceedings


B O L I V I A

* Outlook on Bolivia Improved to Stable From Negative
* IMF 2003 Consultation with Bolivia Showing Worsening Signs


B R A Z I L

AHOLD: CBD Head Eyeing Bompreco Acquisition
EMBRATEL: Moody's Assigns Ratings; Stable Outlook
KLABIN: RGM International to Acquire Bacell


C H I L E

MADECO: Auctions off New Shares As Part of Restructuring
* IMF Consultation Indicates Financial Improvement for Chile


C O L O M B I A

ACES: Succumbing to Liquidation Pressure


C O S T A   R I C A

ICE: Chairman Vows To Fight For Rate Hike


J A M A I C A

C&WJ: Posts Profits Despite Revenue Decline


M E X I C O

ECEMEX: Crabtree Disposes of Entire 60.8% Interest
INNOVA: Moody's Confirms B3 Ratings, Changes Outlook To Positive
PVI INC: Completes Sale of Assets


P A R A G U A Y

ANDE: Presents Five-Year, $340M Investment Plan To Government


P E R U

IMPSAT FIBER: Peru Likely To Approve Telephony Service Thursday


V E N E Z U E L A

PDVSA: Plans $43B Investment Over Next Five Years


   - - - - - - - - - - -

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

BANCO BANSUD: Moody's Raises LTFC Deposit Rating to Caa2
--------------------------------------------------------
Moody's Investors Service upgraded the long term foreign currency
deposit rating of Banco Bansud S.A. to Caa2 from Ca after
upgrading Argentina's foreign currency ceiling for bank deposits
to Caa2.


BANCO FRANCES: Foreign Currency Deposit Ratings Upgraded To Caa2
----------------------------------------------------------------
Moody's Investors Service upgraded the foreign currency deposit
rating of BBVA Banco Frances S.A. to Caa2 from Ca after upgrading
Argentina's foreign currency ceiling for bank deposits to Caa2.
Moody's also raised the bank's foreign currency senior debt
rating to Caa1 from Ca following the upgrade of Moody's foreign
currency country ceiling for bonds and notes to Caa1.


BANCO DE GALICIA: Moody's Affirms FC Debt Rating at Ca
------------------------------------------------------
Moody's Investors Service upgraded the foreign currency deposit
rating of Banco de Galicia y Buenos Aires S.A. to Caa2 from Ca
after upgrading Argentina's foreign currency ceiling for bank
deposits to Caa2. At the same time, Moody's affirmed the bank's
foreign currency debt rating at Ca.


BANCO HIPOTECARIO: FC Deposit Rating Upped to Caa2 From Ca
----------------------------------------------------------
Moody's Investors Service upgraded the foreign currency deposit
rating of Banco Hipotecario S.A. to Caa2 from Ca after upgrading
Argentina's foreign currency ceiling for bank deposits to Caa2.
At the same time, Moody's affirmed the bank's foreign currency
debt rating at Ca.


BANCO HIPOTECARIO: Confidence Improves on US$1.2B Bond Swap
-----------------------------------------------------------
Argentine analysts believe that the proposed US$1.2-billion bond
swap by Banco Hipotecario, Argentina's largest mortgage lender,
is likely to succeed, says Business News Americas. Recently, the
bank informed the Buenos Aires stock exchange that it offered
creditors the ability to swap US$1.2 billion worth of bonds,
which it defaulted on last August amid the country's economic and
financial crisis, with new bonds that have longer maturities and
lower interest rates.

Given the current economic and financial climate, the proposal is
the best alternative for creditors, Argentine Research managing
director Rafael Ber and Maxinver consultancy partner Hernan Fardi
said. The swap would extend current maturities, ranging from last
year's default period through 2008, until the year 2013, while
average interest rates would go from 10% to 3%. Creditors have
until September 15 to accept the offer, and the bank requires 90%
acceptance to proceed.

The September 15 deadline is "a little bit ambitious" and
Hipotecario may need to give investors more time to analyze the
offer, Mr. Ber said, adding he would recommend his clients
accept.

Meanwhile, Mr. Fardi applauded the way Hipotecario has come out
of its default status, saying that it has used "a very good
strategy" because the bond swap is "very well structured."


BANCO DE LA CIUDAD: LTFC Rating Raised to Caa2
----------------------------------------------
Moody's Investors Service upgraded the long term foreign currency
deposit rating of Banco de la Ciudad de Buenos Aires to Caa2 from
Ca after upgrading Argentina's foreign currency ceiling for bank
deposits to Caa2.


BANCO DE LA NACION: Moody's Ups FC Deposit Ratings to Caa2
----------------------------------------------------------
Moody's Investors Service upgraded the foreign currency deposit
rating of Banco de la Nacion Argentina to Caa2 from Ca after
upgrading Argentina's foreign currency ceiling for bank deposits
to Caa2.

Concurrently, Moody's upgraded the long term foreign currency
deposit rating to Caa2 and global local currency rating to Caa2
of Banco de la Nacion Argentina, Santa Cruz branch.

Moreover, Moody's upgraded the long term foreign currency deposit
to Caa2 of Banco de la Nacion Argentina, Uruguay branch.


BANCO DE LA PROVINCIA: LTFC Deposit Rating Raised to Caa2
---------------------------------------------------------
Moody's Investors Service upgraded the long term foreign currency
deposit rating of Banco de la Provincia de Buenos Aires to Caa2
from Ca after upgrading Argentina's foreign currency ceiling for
bank deposits to Caa2.


BANCO RIO: Moody's Ups Ratings Following Upgrade on Argentina
-------------------------------------------------------------
Moody's Investors Service upgraded the foreign currency deposit
rating of Banco Rio de la Plata S.A. to Caa2 from Ca after
upgrading Argentina's foreign currency ceiling for bank deposits
to Caa2. Moody's also raised the bank's foreign currency senior
debt rating to Caa1 from Ca following the upgrade of Moody's
foreign currency country ceiling for bonds and notes to Caa1.


BANKBOSTON N.A.: Moody's Rates FC Deposit Rating Caa2
-----------------------------------------------------
Moody's Investors Service raised the foreign currency deposit
rating of BankBoston, N.A. (Argentina) to Caa2 from Ca after
upgrading Argentina's foreign currency ceiling for bank deposits
to Caa2.


BERETTA HERMANOS: Creditor Claims Verification Ends Today
---------------------------------------------------------
Ms. Maria del Rosario Pavon, the receiver for Argentine company
Beretta Hermanos S.R.L. will close the credit verification
process today. The Company's reorganization will proceed with the
preparation of individual reports.

An earlier report from Infobae indicates the Company received
permission to undergo reorganization from the Civil and
Commercial Tribunal of San Luis.

CONTACT:  Beretta Hermanos S.R.L.
          Mariscal Sucre 1031
          Buenos Aires

          Maria del Rosario Pavon
          Florida 441
          San Luis


CITIBANK N.A.: Moody's Raises FC Senior Debt Rating to Caa1
-----------------------------------------------------------
Moody's Investors Service upgraded the foreign currency deposit
rating of Citibank, N.A. (Argentina Branch) to Caa2 from Ca after
upgrading Argentina's foreign currency ceiling for bank deposits
to Caa2. Moody's also raised the bank's foreign currency senior
debt rating to Caa1 from Ca following the upgrade of Moody's
foreign currency country ceiling for bonds and notes to Caa1.


DIRECTV LA: Raven Media Responds to Recent Motion
-------------------------------------------------
See prior report [Troubled Company Reporter - Latin America,
Wednesday, July 30, 2003, Vol. 4, Issue 149]

                          Raven Responds

On the Petition Date, DirecTV sought to subordinate Raven's yet
unfiled claim. Now, DirecTV has renewed that request, under the
guise of a Motion for Summary Judgment. William H. Sudell, Jr.,
Esq., at Morris, Nichols, Arsht & Tunnell, in Wilmington,
Delaware, relates that DirecTV attempts to apply subordination to
the most extreme case -- a right to payment:

   -- arising from an agreement separate from the agreement
      conveying stock;

   -- that matured prepetition; and

   -- that is not based on any allegation of tortious or other
      wrongful conduct.

Mr. Sudell argues that Raven's Claim is not subject to
subordination because:

A. Raven's Claim Is Not For "Damages".

   Raven's contingent claim -- a the right to payment for the
   precise amount due under the Put Agreement -- existed since
   the date the Put Agreement was entered and automatically
   matured prepetition upon the occurrence of a Put Acceleration
   Event. On maturation, Raven's membership interest was
   nominal, at most, and Raven's rights were solely under the
   Put Agreement, which required no notice or demand.

   Mr. Sudell notes that Raven's claim is not based on some
   "actionable conduct" of the Debtor giving rise to a claim for
   damages based on tortious conduct concerning the purchase or
   sale of a security. Rather, Raven's claim is based on an
   independent, express, and liquidated contractual right to
   payment.

B. Raven's Claim Does Not "Arise From" The Purchase or Sale of a
   Security.

   The Raven claim "arises from" a different contract with the
   Debtor altogether -- the Put Agreement. Accordingly, Raven's
   claim under the Put Agreement is not subject to subordination
   because the claim is not based on the stock transaction or the
   instrument conveying the new stock.

Furthermore, relying on Telegroup, DirecTV ignores the plain
language of Section 510(b) of the Bankruptcy Code. In Telegroup,
the claims at issue arose from the purchase or sale of securities
because they arose from a breach of the stock purchase agreement,
the very instrument in which shares were conveyed. In re Wyeth
Co. presents an analogous situation to the present case. The
Wyeth Court found that claims based on notes issued to redeem
stock were not subject to subordination where the claims did not
directly concern the stock transaction. In In re Montgomery Ward,
the Court refused to subordinate a claim arising from non-payment
of a promissory note issued by a debtor to consummate the
repurchase of its own stock.

DirecTV contends that In re Wyeth is distinguishable because the
claimants in that case sought recovery under promissory notes
that they had received in exchange for selling their shares to
the corporation seven years prior to the debtor's bankruptcy.
Similarly, DirecTV attempts to distinguish Montgomery Ward by
contending that the debtor had redeemed the shareholder's stock
more than seven months prior to the petition date.

Mr. Sudell contends that DirecTV's attempt to hinge the
subordination determination on the length of time between
a shareholder's surrender of his company shares and the company's
bankruptcy petition date is unpersuasive and not supported by the
case law. DirecTV illogically suggests that this surrender must
occur "significantly prior to the debtor's insolvency" to stave
off subordination. Apparently, in DirecTV's view, the minimum of
two and a half months between the put acceleration event and
DirecTV's Petition Date is not sufficiently "significant."  Mr.
Sudell argues that this approach yields absurd and unfair results
because:

   (1) there is no principled basis upon which to distinguish
       between, say, a seven-month and two-month period between a
       surrender of securities and the petition date; and

   (2) under DirecTV's reasoning, a putative debtor that has a
       prepetition obligation to purchase an equity holder's
       shares can guarantee subordination simply by refusing to
       perform its obligation.

Ms. DePhillips maintains that a Put Acceleration Event occurred
at least two and a half months prior to the Petition
Date. DirecTV automatically became obligated to repurchase
Raven's shares, thereby depriving Raven of any theoretical
benefits of stock ownership and precluding subordination under
DirecTV's own reading of Montgomery Ward and Wyeth. If DirecTV
had performed its obligation, Mr. Sudell says, it could not now
argue that subordination was justified because Raven would not be
"an equity holder who is trying to better his position."  By
refusing to perform its obligations, DirecTV could argue in this
bankruptcy case that subordination is warranted because Raven is
a DirecTV shareholder, even though, of course, Raven should no
longer be
holding its interest in DirecTV.

Mr. Sudell tells the Court that DirecTV hopes to fit this case
neatly into the line of cases in which courts have held that
damages for breach of contract are "damages arising from the
purchase or sale of securities" for purposes of Section 510(b):

A. In re Response U.S.A., Inc., 288 B.R. 88 (D.N.J. 2003)

   Mr. Sudell cites that the claimant in In re Response did not
   have the opportunity to surrender its shares prior to the
   petition date because:

   (1) It was the petition filing that caused the debtor's
       stock to decline in value. Thus, the claimant was a
       shareholder of the debtor on the petition date and had no
       opportunity to change its status and thereby rid itself of
       stock ownership prior to the petition date. However,
       Raven's claim arose prepetition and Raven should not have
       been a member on DirecTV's Petition Date as DirecTV had a
       prepetition obligation to purchase Raven's interests;

   (2) The Court classified their claim as one for breach of
       contract damages because claimants sought recovery for
       damages they suffered due to their inability to sell their
       shares because the stock was rendered worthless by the
       debtor's chapter 11 filing. Notably, the debtor in In re
       Response was not required to purchase the shares, as
       DirecTV was required to do, but rather, was only required
       to compensate claimants for the damages they suffered by
       their inability to sell their shares at a certain price.
       In contrast, Mr. Sudell notes, DirecTV is simply required
       to make a specified payment to Raven in exchange for
       Raven's interests -- not to compensate Raven for losses;
       and

   (3) In re Response is yet another case in which subordination
       was ordered where the damages arose from the breach of the
       instrument conveying the stock purchase agreement,
       whereas, in the present case, Raven's right to payment is
       based on a separate instrument.

B. In re Int'1 Wireless Communications Holdings, Inc., 257 B.R.
   739 (Bankr. D. De. 2001)

   The Int'l Wireless debtor breached a supplement to the stock
   purchase agreement that required the debtor to engage in an
   IPO by a certain date or register the stock already held by
   the claimant. In any case, a "supplement" is merely an
   amendment to the original agreement, and is not a freestanding
   agreement at all. In any case, for purposes of the Section
   510(b) analysis, a supplement to a stock purchase agreement is
   a far cry from the Put Agreement.

C. In re NAL Fin. Group, Inc., 237 B.R. 225 (Bankr. S.D. Fla.
   1999)

   In re NAL Fin., both the stock purchase agreement and
   registration rights agreement required the debtor to use its
   best efforts to register the securities. Mr. Sudell contends
   that Raven's rights under the Put Agreement were hardly a
   necessary corollary  to its ownership of an interest in
   DirecTV.

D. In re Vista Eyecare, 283 B.R. 613 (Bankr. D. Ga. 2002)

   In Vista Eyecare, the claimant sought the benefits of stock
   ownership, which is often viewed by courts as justification
   for subordination, by purchasing additional stock in the
   debtor and making an investment decision to hold the stock he
   owned in the hope that the share price would rise. However,
   Raven had no interest in being a DirecTV shareholder, never
   gave consideration to the potential benefits of stock
   ownership and never took any affirmative steps to maximize the
   value of its DirecTV shares.

Mr. Sudell maintains that the legislative history of Section
510(b) and the Congressional policy underlying the statute
supports Raven's position. The purpose of Section 510(b) is to
ensure that shareholders, as opposed to general unsecured
creditors, bear the risk of fraud or illegality in the issuance
of a company's stock.

This policy is implicated primarily when the shareholder tries to
avoid subordination of a claim based on the purchase of simple
common stock. As the common stockholder stakes his entire
investment on the success of the company, he should be required
to bear the loss in the event of the company's failure or the
company's conduct in relation to the stock transaction at issue,
and therefore, most cases applying subordination involve common
stock.

In contrast, Raven is merely attempting to enforce its right to a
cash payment from DirecTV under a separately negotiated contract
designed specifically to treat Raven as a creditor. Reflecting
the reality of its 4% interest in DirecTV, Raven's "investment"
did not bear the usual attributes of equity participation
because:

   (a) at DirecTV's insistence, Raven was required to give up its
       minority voting rights by giving a proxy to the other
       members;

   (b) Raven was not otherwise consulted, invited to shareholder
       meetings, or included in any other company affairs;

   (c) Raven's right to transfer its equity interest was severely
       limited; and

   (d) Raven's rights could be automatically divested at any time
       by a Put Acceleration Event Raven's separate status as a
       creditor was carefully negotiated by the parties and
       enabled DirecTV to complete its purchase of Galaxy.

DirecTV makes the further untenable argument that Raven's
retention of the potential rewards of its equity holdings is
"outcome-determinative."  Mr. Sudell refutes that this argument
is based on a misunderstanding of Section 510(b), the relevant
case law and the facts of DirecTV's case. Moreover, even the
potential upside was limited for Raven.

The transaction between Raven and DirecTV entailed the economic
equivalent of convertible debt -- Raven had the right to obtain,
in three years, the Galaxy sales price plus interest, as well as
a theoretical potential to share in the appreciation of DirecTV's
equity securities. Most importantly, Raven had no further
theoretical ability to profit from its membership interests, as
its obligation to exchange those interests for the consideration
required under the Put Agreement was then fixed.

In the alternative, if the Court finds that there are material
issues of fact precluding summary judgment, Raven believes that
the Court should order discovery on:

   (a) documents and testimony concerning the negotiations
       leading up to DirecTV's purchase of Raven's interest in
       Galaxy;

   (b) documents and testimony concerning the parties' intention
       to the various agreements they executed between them;

   (c) documents and testimony concerning Put Acceleration
       Events, to the extent DirecTV retracts its concession
       regarding their timing.

Ultimately, Raven asks the Court to deny DirecTV's request for
summary judgment and for subordination; and instead allow Raven's
$187,395,633 claim.

                   Committee Supports DirecTV

The Official Committee of Unsecured Creditors agrees that Raven's
Put Claim must be subordinated pursuant to Section 510(b) to
Bankruptcy Code as a claim for "damages arising from the purchase
or sale" of equity in the Debtor, pursuant to the Third Circuit
Court of Appeals' interpretation of Section 510(b) in In re
Telegroup, Inc., 281 F.3rd 133 (3rd Cir. 2002).

Kathleen Marshall DePhillips, Esq., at Pachulski, Stang, Ziehl,
Young, Jones & Weintraub, in Wilmington, Delaware, reminds the
Court that the specific claim at issue in Telegroup was asserted
by disgruntled equity holders by reason of the debtor's failure
to register the holders' common stock. The Third Circuit held
that the Registration Claim must be subordinated because the
claim:

   -- arose only because of the creditors' prior purchase of the
      debtor's equity, and

   -- constituted an effort to recover the creditors' equity
      investment.

Raven's Put Claim is based on the Debtor's refusal to repurchase
Raven's Equity Interest in the Debtor. Raven's Put Claim arises
not only because of Raven's prior purchase of the Debtor's equity
but also constitutes an effort by Raven to recover its equity
investment.

In sum, Ms. DePhillips notes, Raven's Put Claim and the
Registration Claim at issue in Telegroup are indistinguishable.
In both cases:

   (a) the creditor acquired an equity interest in the Debtor as
       part of an acquisition of assets by the Debtor;

   (b) the acquired Equity Interest constituted a small minority
       interest;

   (c) the creditor asserted that it did not really want to be an
       equity holder, but would have preferred to be cashed out
       immediately;

   (d) the debtor breached a post-equity-issuance obligation to
       the creditor in each case. In Telegroup the obligation
       was to register the equity in order to facilitate resale
       while, in DirecTV's case, the Debtor's obligation was to
       reacquire the equity itself;

   (e) the creditor in each case sought or now seeks to assert a
       claim based on its damages by reason of the debtor's
       failure to honor its post-issuance contractual obligation
       relating to the equity interest; and

   (f) in each case, the claim is measured by the amount of the
       lost equity investment.

Ms. DePhillips notes that Raven attempts to distinguish Telegroup
by essentially disagreeing with the Court's decision. While the
Third Circuit clearly stated that the Section 510(b) phrase
"damages arising from the purchase or sale" of a security was
ambiguous and the interpretation required analysis of the
legislative history, Raven asserts that the "first step" is to
determine whether the phrase is ambiguous "as applied to Raven's
claim."

Raven goes on to assert that its claim should not be subordinated
because its claim is not for "damages" arising from the purchase
or sale of the Debtor's equity. The Third Circuit held that
Section 510(b) applied to subordinate all claims where,
regardless of the legal theory involved, the creditor was
essentially attempting to recoup losses associated with its
equity investment in the debtor. Thus, the claim arising from a
debtor's breach of the Registration Obligation were subordinated
in Telegroup, even though the claim was not specifically seeking
"damages" related to the actual purchase or sale of the
securities in question. Similarly, the Put Claim must be
subordinated as it also obviously relates directly to Raven's
attempt to recoup its equity investment.

Raven also argues that the Put Obligation arises from a separate
Put Agreement, whereas the Registration Obligation in Telegroup
was contained in the stock purchase agreement itself. Ms.
DePhillips refutes that nothing in the Telegroup Opinion suggests
that a "separate agreement" would have changed the result.
Rather, the Third Circuit's decision was based principally on the
fact that the equity holder was attempting to recoup its equity
investment through the assertion of its claim irrespective of
what document provided the basis for the claim.

Finally, Raven argues that Telegroup is not controlling in
DirecTV's case because "Raven's investment did not bear the usual
attributes of equity participation."  Specifically, Raven asserts
that Section 510(6) should not apply because:

   (a) Raven gave up its minority voting rights,

   (b) Raven was not invited to shareholder meetings,

   (c) Raven's right to transfer its equity interests was
       limited, and

   (d) Raven's equity rights could be "divested" upon the
       occurrence of a Put Acceleration Event.

Ms. DePhillips contends that Raven cannot dispute that it held
the most obvious attribute of an equity holder -- the ability to
participate in a potentially enormous upside that the Debtor
possessed in the year 2000 when Raven acquired its equity
interest. It is precisely by reason of this upside participation
that Section 510(b) subordinates Raven's claims, which are now
driven by the fact that this upside failed to materialize.

Accordingly, the Committee joins in the Debtor's request that
Raven's Put Claim must be subordinated pursuant to Section 510(b)
of the Bankruptcy Code. (DirecTV Latin America Bankruptcy News,
Issue No. 11; Bankruptcy Creditors' Service, Inc., 609/392-0900)


DEPLI: Receiver Wraps Up Claims Authentication Period
-----------------------------------------------------
Mr. Roque Alberto Pepe, who is assigned receiver for Argentine
electric goods maker Depli S.R.L., will wrap up the credit
verification process. The deadline for the authentication of
credit claims, which was set by the court, expires today.

Buenos Aires's Court No. 24, which handles the Company's
reorganization, requires Mr. Pepe to submit the individual
reports by September 26; and the general report on October 31.
The Court has also set March 31, 2004 as the date for the
informative audience.

CONTACT: Mr. Roque Alberto Pepe
         Argentina 5785
         Buenos Aires


GRADIA: Proofs of Claim Due No Later Than Today
-----------------------------------------------
The deadline for the credit verification process regarding the
bankruptcy of Entre-Rios based company Gradia S.A. expires today.
The receiver, Mr. Carlos Maria Figueroa, who verified creditors'
claims will prepare the individual reports.

An earlier report from Infobae indicates that the Civil and
Commercial Court of Parana holds jurisdiction over this case.
However, it did not mention the deadlines for the individual and
general reports.

CONTACT:  Gradia S.A.
          Ave. Almafuerte 1887
          Parana, Entre Rios

          Carlos Maria Figueroa
          Cordoba 401
          Parana, Entre Rios


HSBC BANK ARGENTINA: Moody's Raises FC Deposit Rating to Caa2
-------------------------------------------------------------
Moody's Investors Service upgraded the foreign currency deposit
rating of HSBC Bank Argentina S.A. to Caa2 from Ca after
upgrading Argentina's foreign currency ceiling for bank deposits
to Caa2.


INSTITUTO DON JAIME: Receiver Prepares Individual Reports
---------------------------------------------------------
Ms. Norma Alicia Balmes, receiver for the reorganization of
Instituto Don Jaime S.R.L. will prepare the individual reports as
the credit verification period ends today. These reports are due
for submission to the court on October 7.

The Troubled Company Reporter - Latin America earlier reports
that the San Martin-based company received permission to
reorganize from the province's Court No. 9. The court, which
approved the Company's motion for "Concurso Preventivo", requires
the receiver to submit the general report on November 19.

CONTACT:  Norma Alicia Balmes
          Mitre 3885
          San Martin


INTEGRAL FARM: Individual Reports Due Today
-------------------------------------------
The receiver of Concordia-based Integral Farm Service S.R.L. is
required to file the individual reports regarding the Company's
reorganization today. The reports are prepared after the credit
verification process was completed. Court No. 3 of Concodia,
which handles the case, also requires the receiver to file the
general report on October 8.

CONTACT:  Integral Farm Service S.R.L.
          Laprida 1777
          Concordia, Entre Rios

          Rosa Isabel Mioni
          San Luis 476
          Concordia, Entre Rios


LOMA NEGRA: Argentine S&P Assigns Default Ratings To Bonds
----------------------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
rated bonds issued by Loma Negra Cia. Industrial Argentina `raD'
on Tuesday. The rating, which is assigned to issues that are in
payment default, was based on the Company's finances as of the
end of May this year.

The National Securities Commission of Argentina describes the
affected bonds as "Programa de Eurobonos a Mediano Plazo". These
are classified under "Program", but the CUSIP and maturity date
was not indicated.


MIDAN: Deadline For Claims Filing Expires Today
-----------------------------------------------
The credit verification process concerning the reorganization of
Argentine tour company Midan S.A. expires today, August 22. The
receiver, Ms. Maria Cristina Agrela, will prepare the individual
reports, which must be filed on October 3 this year.

Local news portal Infobae earlier said that Buenos Aires's Court
No. 14, which handles the Company's case has set November 14 as
the deadline for the general report. An informational assembly
will be held on May 14 next year.

CONTACT:  Ms. Maria Cristina Agrel
          Viamonte 1365
          Buenos Aires


NAHUELSAT: Reaches Debt Accord With Creditors
---------------------------------------------
Argentina's satellite company Nahuelsat -controlled by European
space holding EADS- has reached an agreement with its creditors
for the restructuring of a US$60-million debt. Nahuelsat owes
some US$50 million to a pool of European banks, such as Credit
Lyonnais, Dresdner Bank and Mediocredito Centrale, and US$10
million to the International Finance Corporation (IFC). Jorge
Irigoin, Nahuelsats general manager, said the lawyers of the firm
would travel to France in September to sign the agreement.


NUTRICION: Organizational Meeting Set for Today
-----------------------------------------------
The reorganization of Argentine company Nutricion S.A. proceeds
with an informative assembly today, August 22, 2003. Local news
portal Infobae reports that the Company received permission to
undergo reorganization from the city's Court No. 5. Clerk No. 10
assists that court on the case.


PAN AMERICA/PETROBRAS ENERGIA: Moody's Ups Ratings to Caa1
----------------------------------------------------------
After upgrading Argentina's foreign currency ratings, Moody's
Investors Service upgraded its ratings on two local companies.

Citing a statement released by the agency, Business News Americas
reveals that Moody's has upgraded its ratings on Pan American
Energy and Petrobras Energia to Caa1 from Ca. The outlook on both
ratings is stable, Moody's said.

The upgrade affects the companies' long-term foreign currency
debt rating and foreign currency issuer rating, says Business
News Americas.


TELEFONICA DE ARGENTINA: Places New Bonds Worth US$189.70M
----------------------------------------------------------
The major telecommunication company, Telefonica de Argentina, has
issued new `Obligaciones Negociables, ON` for a total amount of
US$189,706,000 at 11 7.8% rate, with due in the year 2007;
US$220,007,000 for the ON at 9 1/8% with due in the year 2010;
US$148,144,000 for the ON at 8.85 % with due in 2011 and finally
$223,750 for the ON with conversion and with due in the year
2011.


* Moody's Assigns Ratings To BODENs, Pagares Issued By Argentina
----------------------------------------------------------------
Moody's Investors Service assigned ratings of B3 to peso-
denominated BODENs and Pagares and a foreign-currency rating of
Caa1 to dollar-denominated BODENs and Pagares issued by the
Argentine government. Consequently, Argentina's foreign-currency
country ceiling has been raised to Caa1 from Ca, remaining at a
very low level.

The higher ratings assigned to BODENs and Pagares incorporate the
fact that holders of these instruments have already taken
significant Net Present Value (NPV) losses resulting from the
past restructuring of deposits and debt. To date, the government
continues to meet debt service on these obligations in a timely
manner.

The Argentine government is still struggling to deal with non-
restructured foreign-currency debt. However, Moody's believes
that any such debt restructuring should not interfere with the
capacity and willingness of the government to meet its
obligations on the existing stock of BODENs and Pagares.

International bonds sold under foreign law issued by the
Argentine government are still rated Ca, representing a high
likelihood that any restructuring will entail a significant NPV
loss to creditors.



=============
B E R M U D A
=============

TRENWICK GROUP: Files U.S. Chapter 11 Bankruptcy Proceedings
------------------------------------------------------------
Trenwick Group Ltd. ("Trenwick") (OTC: TWKGF) stated Wednesday
that it and its affiliates, LaSalle Re Holdings Limited ("LaSalle
Re Holdings") and Trenwick America Corporation ("Trenwick
America," and collectively with LaSalle Re Holdings and Trenwick,
the "Debtors"), as a step in its previously announced
restructuring and in accordance with its August 6 letter of
intent with creditors (the "Letter of Intent"), filed for
protection under chapter 11 of the United States Bankruptcy Code
(the "Bankruptcy Code") with the United States Bankruptcy Court
for the District of Delaware (the "Bankruptcy Court").
Additionally, Trenwick and LaSalle Re Holdings are in the process
of filing proceedings in the Supreme Court of Bermuda, known
under Bermudian law as "winding up", as a further step in the
restructuring and in accordance with the previously announced
Letter of Intent. Trenwick's insurance company subsidiaries,
Trenwick America Reinsurance Corporation, The Insurance
Corporation of New York, Dakota Specialty Insurance Company and
LaSalle Re Limited, all of which are in runoff, and its Lloyd's
operations are not subject to the proceedings in the Bankruptcy
Court or the Supreme Court of Bermuda and their operations
continue.

Background Information

Trenwick is a Bermuda-based specialty insurance and reinsurance
underwriting organization with subsidiaries located in the United
States, the United Kingdom and Bermuda. Trenwick's operations at
Lloyd's, London underwrite specialty insurance as well as treaty
and facultative reinsurance on a worldwide basis. Trenwick's
United States specialty program business, specialty London market
insurance company, Trenwick International Limited, and its United
States reinsurance business through Trenwick America Reinsurance
Corporation are now in runoff. In 2002, Trenwick sold the in-
force business of LaSalle Re Limited, its Bermuda based
subsidiary.

CONTACT:  Trenwick Group Ltd.
          Alan L. Hunte
          Phone: 441-292-4985



=============
B O L I V I A
=============

* Outlook on Bolivia Improved to Stable From Negative
-----------------------------------------------------
Standard & Poor's said Wednesday that revised its outlook on the
Republic of Bolivia to stable from negative, reflecting
improvements in the country's political environment. Standard &
Poor's also said that it affirmed its 'B' long-term and 'C'
short-term credit ratings on the sovereign.

"Standard & Poor's lowered its long-term ratings on Bolivia to
'B' from 'B+' on Feb. 26, 2003, amid severe social unrest that
impeded policy implementation," explained credit analyst
Sebastian Briozzo. "Since then, President Sanchez de Lozada's
administration has taken systematic steps to strengthen its
support base and advance legislation in Congress, and has
regained some political and economic momentum," he added.

According to Mr. Briozzo, the government has also broadened its
coalition to include the Nueva Fuerza Republicana (NFR), formerly
part of the opposition, and now controls two thirds of the votes
in Congress. In addition, the government has passed legislation
aimed at 1) strengthening its tax structure and enforcement
capabilities, and 2) creating a framework to facilitate
restructuring of the corporate sector's significant debt burden
with the banking system on a case-by-case basis.

However, Bolivia's creditworthiness remains constrained by
significant economic and political challenges. "Given social
discontent with the high levels of poverty, members of the new
alliance will need to prove they can work together effectively,"
noted Mr. Briozzo. "Moreover, ongoing negotiations with the main
opposition party are aimed at setting an institutional framework
to discuss the socially sensitive issues of gas exports, coca
eradication, and land reform. Any failure of this challenging
initiative, however, could undermine the still-fragile political
environment," he added.

In the short-term, the government must comply with the 6.5%
nonfinancial public sector deficit target for 2003 agreed upon
with the International Monetary Fund and negotiate a new three-
year Poverty Reduction and Growth Facility program. New tax
measures, along with the ability to postpone public investment,
would allow the government to avoid significant fiscal slippage.
"Given the projections for continued high deficits (and limited
local financing), the government must ensure access to official
credit," Mr. Briozzo said. "This, in turn, requires a commitment
to fiscal austerity," he concluded.

ANALYSTS:  Sebastian Briozzo, New York 212-438-7342
           Lisa M Schineller, New York (1) 212-438-7352
           Jane Eddy, New York (1) 212-438-7996


* IMF 2003 Consultation with Bolivia Showing Worsening Signs
------------------------------------------------------------
On July 7, 2003, the Executive Board concluded the Article IV
consultation with Bolivia.

Background

Economic activity has been sluggish since 1999, but has shown
some signs of recovery in 2002 and early 2003. Real GDP growth
averaged only 1.4 percent during 1999-2001, dampened by the
regional slowdown and an appreciation of the real exchange rate,
as well as the impact of the coca eradication program. Growth
increased to 2.8 percent in 2002, boosted by the building of a
new pipeline to Brazil as well as public works and transportation
projects, although other domestic demand remained weak.
Unemployment has risen in the last three years to 8« percent, and
about half of the labor force remains underemployed. As of 2002,
about two thirds of the population lived below the poverty line,
with one-third in extreme poverty.

The fiscal deficit increased sharply in 2001-02. The combined
public sector deficit rose to nearly 9 percent of GDP in 2002
(from about 3« percent of GDP in 2000). Fiscal revenues weakened
because of sluggish domestic demand, delays in tax reforms, and a
freeze on domestic fuel prices since mid-2001. The fiscal deficit
also reflected an increase in net pension outlays from 4« percent
to 5 percent of GDP during this period.

Nonfinancial public sector debt increased from 58« percent of GDP
in 2000 to 61¬ percent in 2002, including substantial increases
in domestic financing and in nonconcessional foreign borrowing.
As a result, despite the enhanced HIPC debt relief received in
June 2001 which, by itself, reduced the net present value (NPV)
of external debt by 15 percentage points of GDP, the NPV of
public debt as of end-2002 remained at its end-2000 level of 45
percent of GDP.

The contraction of financial system activity, which began in
1999, became more pronounced in 2001-02, contributing to a loss
in international reserves. Bank credit and deposits have declined
as political uncertainty and sluggish growth have weakened
confidence in the banking system and resulted in more cautious
behavior by banks. Since the end of 1998, bank credit has
declined by more than 30 percent in U.S. dollar terms, and
deposits by some 24 percent. Two episodes of heavy withdrawals of
deposits (in mid-2002 and in February 2003) were halted after the
central bank supplied liquidity. The coverage of broad money by
gross international reserves declined from over 40 percent at
end-1999 to 34« percent at end-2002. Monetary policy was eased
over 2001-02 in the face of increased government financing needs
and liquidity requirements of the banking system, before being
tightened in recent months.

Several years of financial disintermediation and economic
stagnation have added to vulnerabilities in a highly dollarized
financial system. (Around 92 percent of deposits and 97 percent
of loans are denominated in US dollars.) The nonperforming loan
ratio rose to 20 percent as of end-May, largely as a result of
the corporate sector's weak cash flow. Banks' capital adequacy
ratios exceed the minimum requirement, partly reflecting a
recapitalization in December 2001 of three banks through
subordinated loans guaranteed by the public sector.

The central bank stepped up the pace of currency depreciation
against the US dollar to 10 percent in 2002 in response to
domestic and external shocks, including the political
uncertainties that prompted a 15 percent reduction in bank
deposits in June-July 2002. The boliviano appreciated in real
effective terms by more than 4 percent in 2002 because of the
weakness of the currencies of the main regional trading partners.
With the neighboring countries' currencies gaining strength in
recent months, the boliviano depreciated by 11 percent in real
effective terms during the first five months of 2003, while the
rate of crawl against the US dollar slowed to an annual rate of 4
percent.

The authorities' economic program for 2003 focuses on stabilizing
the economy and laying the basis for a higher rate of sustained
growth. The program projects a gradual economic recovery, with
real GDP growth reaching about 3 percent, led by an expansion of
natural gas production, a strong performance in the agriculture
sector, and a boost to manufacturing, particularly textiles, from
the expanded preferential access to the U.S. market for the
Andean countries. The external current account is projected to
improve by 1« percent of GDP as a result of higher exports on
natural gas, soybean products, and textiles. The fiscal program
aims to reduce the combined public sector deficit to 6.5 percent
of GDP in 2003.

Executive Board Assessment

Executive Directors noted that difficult economic and political
circumstances have heightened the Bolivian economy's
vulnerabilities, and welcomed the government's emphasis on
regaining fiscal sustainability, strengthening the corporate and
financial sectors, and achieving sustained growth and poverty
reduction. Directors encouraged continued efforts to secure broad
political and social support for their policy agenda, and
welcomed their intention to adopt a PRGF-supported program soon.

Directors expressed concern about the rising external debt and
the increasing pressure toward nonconcessional borrowing. They
commended the policy actions taken by the authorities to put in
place a prudent fiscal framework that would set the debt ratio on
a firm downward path. These actions have included politically
courageous decisions to defer low-priority spending and begin the
process of broadening the tax base. Directors highlighted the
importance of building on these initial actions and broadening
fiscal reforms to underpin medium-term fiscal consolidation.

Directors saw room for further improving the efficiency of public
spending and its targeting to support poverty alleviation. They
commended the authorities' plans for deepening tax reform and
improving tax administration through a modern tax procedures
code, and urged the authorities to work at building public
support in these endeavors, and to continue efforts to secure
congressional approval of revenue measures. Controlling pension
reform costs and enhancing the effectiveness of fiscal
decentralization also were seen as key to achieving fiscal
sustainability. While supportive of steps to promote inflation-
indexed savings instruments, Directors concurred on the need to
reduce reliance on pension funds for government financing. A few
Directors felt that the use of inflation-indexed bonds would lead
to a better matching of assets and liabilities and the greater
use of market interest rates.

Directors supported the policy of gearing monetary policy towards
maintaining low inflation and a gradual build-up of international
reserves, and welcomed the recent stability of deposits in the
banking system. They noted that a shift toward monetary
tightening would be needed if inflation pressures were to
develop. Directors noted with concern the constraint on policy-
making and risks to the financial system stemming from high
dollarization, and supported steps toward gradual and voluntary
de-dollarization. These would include consistent monetary policy
implementation to make clear the government's commitment to low
inflation; and implementation of measures to promote boliviano-
denominated savings, including bringing small depositors into the
banking system. Directors stressed the importance of maintaining
the central bank's financial strength. They therefore expressed
concern about the authorities' proposal to alleviate the
treasury's cash flow position through increased transfers of
central bank profits to the treasury. They encouraged
consultation with the Fund before proceeding with these
transfers.

Directors welcomed the authorities' support for an independent
central bank, and the authorities' prompt response in having
begun to address the weaknesses identified in the safeguards
assessment. They commended the authorities' efforts to combat
money laundering and terrorism financing, and encouraged further
action, such as strengthening the financial intelligence unit.
Directors were also impressed by the performance of microfinance
institutions noting their low non-performing loan ratio and their
significant contribution to financial deepening and poverty
reduction in disadvantaged areas.

Directors believed that the depreciation of the boliviano in real
effective terms since late 2002 would help to bolster Bolivia's
competitiveness. They supported the authorities' strategy to move
toward a more flexible exchange rate regime in the medium term
but stressed that the transition should be handled carefully in
view of the high degree of dollarization and the related
financial and corporate vulnerabilities. Directors agreed that
the central bank should maintain a high level of international
reserves to strengthen its lender-of-last resort capability.

Directors welcomed the progress made in developing a
comprehensive strategy for restructuring the financial and
corporate sectors. Regulations governing bank resolution and
corrective action for banks with problems have been issued, along
with a decree that clarifies the roles of the different
institutions charged with oversight of the financial sector.
Directors also endorsed the authorities' plan to implement a new
corporate bankruptcy law and a voluntary restructuring framework
as soon as they receive congressional approval. They encouraged
continued momentum on financial and corporate restructuring
through development of a framework for the use of public funds
for restructuring, putting in place procedures for responding to
bank failures, and refining the draft legislation.

Directors supported the government's plan to develop a medium-
term economic program aimed at fostering a higher rate of
sustained growth and poverty reduction. Such a program should
focus on removing the obstacles to growth in Bolivia, including
inefficient infrastructure, labor market rigidities, inadequate
investment in human capital, and governance problems. Directors
welcomed the coca eradication program, and stressed that
alternative employment opportunities and a social safety net need
to be provided for the former coca farmers. Directors urged the
authorities to move quickly on large natural gas projects,
including by building a public consensus for proceeding with the
LNG export project on economic grounds, which would be important
for realizing Bolivia's growth potential. Directors encouraged
steps to reduce corruption in order to promote foreign direct
investment. They also encouraged firms to take advantage of U.S.
preferential access for Andean countries to boost export growth.

Directors noted the authorities' intention to request the IMF's
support through the PRGF for their medium-term program in the
coming months. They expressed satisfaction that the authorities
are addressing the shortcomings of the 2001 Poverty Reduction
Strategy Paper (PRSP), particularly with regard to the
participatory process. They stressed that the Congress should
play a more central role in the participatory process of the
PRSP, and welcomed the authorities' consensus-building strategy
to gain greater country ownership of the economic strategy.

CONTACT:  INTERNATIONAL MONETARY FUND
          700 19th Street, NW
          Washington, D.C. 20431 USA

          IMF EXTERNAL RELATIONS DEPARTMENT
          Public Affairs: 202-623-7300 - Fax: 202-623-6278
          Media Relations: 202-623-7100 - Fax: 202-623-6772



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

AHOLD: CBD Head Eyeing Bompreco Acquisition
-------------------------------------------
Abilio Diniz, the chairman of Brazilian supermarket Companhia
Brasileira de Distribuicao SA (CBD), plans to acquire the
Bompreco chain being auctioned by scandal-ridden Dutch retailer
Ahold NV. The news comes despite concerns that CBD, the biggest
retailer in Brazil, is too heavily leveraged to snap up a big
asset, says Dow Jones.

"We're in the running and we hope to win," Diniz told local
newswire Agencia Estado, adding, his company's knowledge of the
Brazilian market would be a natural advantage in running the
chain.

Bompreco, the biggest chain in Northeastern Brazil with 87
supermarkets and 28 hypermarkets, had sales of BRL3.34 billion
last year.

Ahold is also selling its properties in Argentina, Paraguay and
Peru as well as its G. Barbosa and Hipercard assets in Brazil.


EMBRATEL: Moody's Assigns Ratings; Stable Outlook
-------------------------------------------------
Moody's America Latina Ltda. assigned Embratel a Baa1.br
Brazilian national scale issuer rating and a B1 global local
currency scale issuer rating. The rating outlook is stable for
both ratings.

The assigned ratings reflect Embratel's moderate leverage and
medium-term refinancing risk, as well as its high exposure to
volatile sales and margins in its long distance business segment.

The ratings are constrained by the following factors:

    i)  the increasingly competitive operating environment for
        long distance services;

   ii)  a hedging policy that heretofore has resulted in a
        relatively high level of exposure to exchange rate
        variations;

  iii)  Embratel's inability to disconnect customer lines and
        resulting high exposure to delinquency and bad debt
        risk;

   iv)  Contingent tax liabilities and unfunded pension and
        medical care plan deficits that slightly increase
        the company's adjusted leverage and could result in
        increased refinancing risk; and

    v)  the short track record for stable revenue and cash flow
        growth.

Moody's believes that a significant amount of business risk stems
from the increasingly competitive business environment in which
Embratel operates.

While Moody's recognizes that Embratel has made rapid progress in
the higher margin local services market by offering attractive
pricing to corporate customers, the rating agency believes that
the barriers to entry are much greater for companies developing a
local exchange strategy than they are for companies entering the
long distance market.

The ratings are supported by the company's current market leading
position in the inter-regional and international long distance
market, its status as the only nationwide data, long distance and
local service provider in Brazil and its brand leadership,
especially in the corporate sector.

Finally, the ratings are supported by a favorable regulatory
environment, which may support the company's initiatives to
compete in the local service segment on a national basis and
reduce interconnection costs.

The outlook is stable because Moody's expects that Embratel will
be able to largely compensate for sales contraction in the long
distance market with growth in its data and local service
businesses.

The ratings agency also believes that Embratel will be able to
maintain its present liquidity profile through a combination of
free cash flow generation, cash balances and timely refinancing.

Embratel may suffer ongoing market share erosion in inter-
regional and international voice long distance services and on
certain lucrative short-haul data routes, but capital scarcity
and perceived limited growth opportunities will likely limit
competition for many of Embratel's network service offerings.

Additionally, Embratel's ongoing investments in its brand have
created a barrier to entry for new non-ILEC entrants to the long
distance market.


KLABIN: RGM International to Acquire Bacell
-------------------------------------------
RGM International signed a definitive agreement with Klabin S.A.
to acquire its 81.7% interests in Klabin Bacell S.A.
(''Bacell''), a dissolving pulp producer in Brazil.  In addition,
RGM International has agreed to acquire from Klabin S.A. and
other parties, 100% interests in Norcell S.A. (''Norcell'') which
owns forest lands in Brazil and provides wood supply to Bacell.
The acquisition of Bacell and Norcell will be undertaken by an
entity within Sateri International, an affiliate of RGM
International.

Bacell operates in the Camacari Petrochemical Complex, located in
the Bahia State in the north-eastern region of Brazil and some 50
km from Salvador, the capital of Bahia State.  Bacell's state-of-
the-art mill, with an annual designed production capacity of
115,000 tonnes, is reputedly one of the lowest cost producers of
dissolving pulp in the world.

Bacell serves mainly the viscose fibre market segment.  The
dissolving pulp produced in Bacell has a 94.5%-96% alpha content
for standard pulp and 95%-96.5% for special grades, and is
capable of higher alpha content for specialized acetate, textile
filament and cellophane market segments.  Its output is directed
mainly at the export market.

Bacell will feature as an important element in Sateri
International's strategic vision for its global viscose fibre
business.

"The Bacell acquisition marks the first major investment of
Sateri International in Latin America.  Bacell will be one of the
key suppliers of dissolving pulp to the viscose plants of Sateri
Oy, Finland, and Sateri (Jiangxi) Chemical Fibre, China, as we
expand our viscose production to meet the growing needs of Asia
markets, particularly in China.  Pending further market and
technical feasibility studies, we intend to more than double
Bacell's production capacity to 250,000 tonnes per annum in the
near future. We shall look forward to working closely with
Bacell's management and staff in realizing these challenges, and
to continue offering high-quality products and services to
Bacell's customers," said Arthur Ling, President of Sateri
International.

Credit Suisse First Boston acted as RGM International's exclusive
financial adviser for this transaction.

Companies Summary:

RGM International is a diversified Asia Pacific business group,
administered from Singapore, with extensive businesses in various
resource-based industries.  The Group's primary business
interests include pulp and paper; crude palm oil and related
businesses; oil & gas; viscose fibre; and engineering,
procurement and construction.  RGM International, through APRIL,
operates one of the world's largest pulp mills with an annual
production capacity of 2,000,000 tonnes per year and has plans to
expand to 3,500,000 tonnes per year.  The Group also intends to
increase its paper and stationery capacity from 350,000 tonnes to
more than 1,200,000 tonnes per annum.  The Group's oil & gas
development plans through Pacific Oil & Gas are also in place to
build an initial 5,000,000 tonnes per annum LNG liquefaction
plant to supply LNG for CCGT power plants.  In addition, RGM
International's palm oil business, through Asian Agri, produces
over 800,000 tonnes of crude palm oil (CPO) per annum and is
expected to increase to more than a million tonnes.

Sateri International has business interests in viscose fibre and
dissolving pulp production.  Sateri Oy, Finland, and Sateri
(Jiangxi) Chemical Fibre, China, are part of the Sateri
International Group.  The Group is one of the largest integrated
viscose and dissolving pulp producers in the world.

Klabin S.A. is a Brazilian leading company in the integrated
production of market pulp, paper and paper products.  Its annual
production amounts to 2 million tons, 41% of which is exported.
Its gross revenue exceeds R$3 billion.

CONTACT:  KLABIN
          Ronald Seckelmann, Diretor Financeiro e de RI
          Luiz Marciano Candalaft, Gerente de RI
          Tel: (11) 3225-4045
          Email: marciano@klabin.com.br



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

MADECO: Auctions off New Shares As Part of Restructuring
--------------------------------------------------------
Chilean copper manufacturer Madeco auctioned off new shares
representing 22% of the company on the local stock exchange on
Wednesday as part of the Company's financial restructuring,
Reuters reports. The transaction, worth approximately US$32.5
million, and managed by Deutsche Bank, saw the Company sell
815.56 million shares for a minimum of CLP28 ($0.04) each.

The shares sold represented most of the shares that remained
unsubscribed after Madeco's capital increase in the first half of
the year. The Company declined to say how many shares it still
had to offer from the capital increase.

Madeco, a unit of financial conglomerate Quinenco, had 2.963
billion outstanding shares at the end of June. In the first
quarter, Madeco reported net loss of 5.061 billion pesos,
compared with a loss of more than double that in the year-earlier
period.

CONTACT:  Marisol Fernandez
          Investor Relations
          Voice: (56 2) 520-1380
          Fax: (56 2) 520-1545
          E-mail: mfl@madeco.cl
          Web Site : www.madeco.cl


* IMF Consultation Indicates Financial Improvement for Chile
------------------------------------------------------------
On August 18, 2003, the Executive Board concluded the Article IV
consultation with Chile.1

Background

Chile's sound policy framework and strong fundamentals have
shielded the country from the regional financial crisis and
permitted continued, though moderate, growth. The pace of Chilean
growth has largely followed that of the global economy, as Chile
has successfully resisted contagion from neighboring countries'
difficulties. In the context of inflation targeting, monetary
policy has played an important countercyclical role, while the
government's fiscal structural balance rule has allowed automatic
stabilizers to operate.

Economic activity has turned up since mid-2002, with a recovery
of domestic demand prompted by lower interest rates, better terms
of trade, and improved consumer confidence as employment picked
up after several years of stagnation. The unemployment rate
remains elevated, however, and is declining only slowly from its
1999 peak. Given a still sizable output gap, inflation has stayed
inside the 2-4 percent target band, with very brief exceptions,
and indicators of inflation expectations confirm the credibility
of the inflation targeting framework.

Monetary and fiscal policies have followed their rules-based
frameworks. The central bank has maintained the accommodative
stance it adopted during the first part of 2002. The low policy
interest rate has kept inflation from dropping below the target
band, as it was successfully transmitted to commercial rates,
fueling a recovery of consumer credit and mortgage activity. The
Chilean peso fluctuated considerably in 2002, reflecting
turbulence in the region. At the height of market concern about
Brazil last October, the central bank announced a temporary
window of potential exchange market intervention; in the event,
intervention was less than the announced limits. Fiscal policy
continued to aim at a structural surplus of 1 percent of GDP,
which, in the context of a sizeable output gap, allowed for a
modest widening of the actual deficit (to around 1« percent of
GDP).

For 2003 and 2004, recovery is expected to gather momentum as
slack capacity is taken up, while inflation remains close to 3
percent. Over the medium term, potential output growth should
gradually increase on account of both higher capital accumulation
and productivity growth, on the basis of recent and planned
reforms. As demand recovers, the modest current account deficit
will widen, but only slowly, since the terms of trade are
expected to improve. As both output and copper export prices
recover over the medium term, the actual government balance is
projected to converge to the structural balance target.

The authorities have made progress in implementing the Pro-Growth
Agenda formulated early last year. Further reform efforts have
focused on ambitious measures to modernize the public
administration, increase monetary and fiscal policies
transparency, and reinforce the financial system. Chile also has
concluded negotiations for free-trade agreements with South Korea
and the United States, and such an agreement with the European
Union is now in force.

Executive Board Assessment

Executive Directors commended the Chilean authorities for
implementing a sound policy framework, based on inflation
targeting, exchange rate flexibility, and a prudent target for
the structural fiscal balance. They considered that these
policies, in conjunction with other strong fundamentals, such as
transparent institutions, an open trade regime, and sound banking
and financial regulatory systems, have allowed Chile continued
stability and economic growth in 2002.

Directors recognized that Chile's inflation targeting framework
has successfully anchored inflation expectations and increased
the economy's resilience to external shocks while maintaining
price stability. They supported the current accommodative
monetary stance, in light of the still tentative recovery in
Chile and the global economy, and advised the authorities to
stand ready to adjust the monetary policy stance in either
direction in order to keep inflation inside its target band. They
commended recent initiatives to strengthen monetary policy
transparency and supported the authorities' interest in
recapitalizing the central bank, which would further consolidate
confidence in the independence of monetary policy and allow for a
better understanding of the authorities' fiscal policy rule.

Directors observed that the floating exchange rate regime has
helped the economy adjust smoothly to adverse shocks. They noted
that the peso had remained flexible even throughout an episode of
exceptional volatility in late 2002, during which the central
bank chose to intervene in the markets.

Directors supported the central bank's decision to deepen the
market for peso-denominated debt, though they suggested a
cautious approach to issuing dollar-indexed debt and continuing
to avoid issuing such debt at short maturities. Some Directors
urged the inclusion of collective action clauses in future
external debt issues, stressing the positive signal that such
action would transmit to other emerging market economies, given
Chile's strong position in international financial markets.

Directors underscored the importance of sustained fiscal
discipline and supported the government's commitment to meeting
its structural surplus target of 1 percent of GDP, consistent in
the current environment with a small actual deficit. They viewed
recent actions to raise taxes and lower expenditure as
appropriate to achieve the fiscal objective, and in particular
endorsed the recent VAT rate increase as a means to replace the
tariff revenue forgone through recent trade agreements and
finance additional outlays associated with social programs.

Directors noted that the structural balance rule had improved the
credibility of the fiscal policy framework and the effectiveness
of monetary policy. Looking forward, they agreed that reinforcing
the public consensus regarding the need for the structural
balance rule would be essential to sustaining it. Several
Directors encouraged the authorities to consider formalizing
elements of the structural balance target, including its level or
procedures for measuring the balance, though others thought that
greater formalization would be unnecessarily constraining.

Directors commended the authorities for the transparency of
fiscal policies, as documented in the recent fiscal ROSC. They
welcomed the authorities' plan to further improve transparency by
presenting information on off-budget expenditures, contingent
liabilities, and public-private partnerships, as well as
reformulating the fiscal statistics using the 2001 Government
Finance Statistics standards.

Directors endorsed the broad set of public sector reforms taken
this year, including those to rationalize remuneration in the
civil service, place limits on and increase the control of
campaign finance, and increase the transparency of procurement
procedures. They considered these reforms an appropriate response
to weaknesses that had recently come to light in public
governance, and urged the authorities to remain vigilant in
monitoring their effectiveness. They also welcomed the
authorities' efforts to improve the financial regulatory
framework through legislation submitted to congress that would
strengthen bank regulatory controls, exchange of information
among supervisory agencies, and modernize financial transactions,
and supported the authorities' intention to participate in an
FSAP later this year. They commended Chile's continued efforts to
combat money laundering and the financing of terrorism.

Directors considered the sizable external debt and refinancing
needs of the corporate sector one possible source of
vulnerability, but recognized that the central bank's liquid
international reserves and the corporate sector's significant
foreign assets offered assurance against instability in financial
markets. A few Directors suggested that the global economic
slowdown and the volatility of international capital flows was
having a serious effect on Chile's well-managed economy,
reinforcing the importance of greater surveillance of advanced
economies.

Directors highlighted that the main challenge for Chile is to
return to higher, sustained growth and to reduce unemployment.
They emphasized the importance of enhancing progress to date in
addressing constraints to growth and investment through
regulatory, capital market, and social sector reforms, including
those in the Pro-Growth Agenda. In this regard, they noted the
importance of proposed steps to broaden capital market access and
promote financial stability, including measures to promote
venture capital, reduce transactions costs, and improve corporate
governance.

Directors also noted that recent trade agreements, including with
some of Chile's largest partners, should enhance growth
prospects. They considered that Chile's endowment of natural
resources would best serve the process of economic development
when combined with a further enhancement of human capital. Though
encouraged by recent growth of employment, they urged the
authorities to move ahead on their commitment to make work
schedules more flexible, and to consider other steps, such as
introducing a more differentiated minimum wage structure, that
would lower unemployment.

Directors recognized that the data received by the Fund are of
good quality, timely, and adequate for surveillance purposes.
They welcomed that most of the data shortcomings identified in
previous consultations have been addressed.



===============
C O L O M B I A
===============

ACES: Succumbing to Liquidation Pressure
----------------------------------------
Aces, the second-largest carrier of struggling airline group
Alianza Summa, is going to be liquidated following shareholders
approval on Wednesday. The approval, according to Reuters, came
as the airline struggles to deal with its ailing situation.
Aces, which began operations in 1972, reported a loss of US$9
million in the first four months of the year, up from a US$7
million loss in the same period of 2002. The airline has a cash
shortfall of US$33 million and its liabilities totaled US$76
million as of April.

The liquidation of Aces now puts Alianza Summa's future up in the
air. Summa president Juan Emilio Posada said the viability of the
group -- founded in May 2002 by a merger between Aces and
flagship carrier Avianca, which has since sought bankruptcy
protection -- depended on "legal, market and financial studies."

"We are addressing the situation step by step," Mr. Posada told
reporters in the northern city of Medellin after Aces'
shareholders unanimously voted to liquidate the Company.

Summa is owned 50-50 by the Coffee Growers' Federation, which
used to own Aces, and Avianca's former owner, the Valores Bavaria
conglomerate. It also includes Avianca's smaller subsidiary SAM.



===================
C O S T A   R I C A
===================

ICE: Chairman Vows To Fight For Rate Hike
------------------------------------------
Costa Rica's public services regulator Aresep slashed some of the
rates imposed by state-run telecoms monopoly ICE despite the
latter's request for the contrary, reports Business News
Americas. Aresep slashed the mobile line activation fee to
CRC2,900 (US$7) from CRC3,000, despite ICE's request to increase
it to up to CRC3,450. In addition, the regulator ordered the
Company to halve the deposit required for a mobile line to
CRC12,500. The regulator explained all these come because ICE is
investing less this year than in 2002.

Strongly criticizing Aresep's argument is ICE Chairman Pablo Cob,
who said that the request for rates hike was made in order to
finance further investment.

"How are we going to invest more if we can't prove to the
comptroller that we will have sufficient revenues to justify the
budget?" he asked.

Mr. Cob pledged to submit the hike request again, adding the
Costa Rica currently has some of the lowest telephony rates in
the world.



=============
J A M A I C A
=============

C&WJ: Posts Profits Despite Revenue Decline
-------------------------------------------
Cable & Wireless Jamaica Ltd. posted a $527-million profit for
the three months ended June 2003, relates RadioJamaica.Com. This
is a 36% increase from its $388-million profit from same period
last year.

However, the Company experienced a $4.5-billion decline in
revenue during that period, said the report. The Company said
that the positive result is from the implementation of programs
for the rationalization of key businesses. The improved
efficiency gained from its transformation exercise also boosted
the results.

CONTACT:  Cable & Wireless PLC
          124 Theobalds Road
          London
          England
          WC1X 8RX
          Phone:  +44 (0)20 7315 4000
          Fax:  +44 (0)20 7315 5000
          Home Page:  http://www.cw.com



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

ECEMEX: Crabtree Disposes of Entire 60.8% Interest
--------------------------------------------------
KLK wishes to advise that its wholly-owned subsidiary, Crabtree &
Evelyn Holdings Ltd, has disposed of its entire 60.8% interest
consisting of 541,818 shares of Pesos 10 each in the Mexican
joint venture company, Ecemex, on 15 August 2003 for a
consideration of US$160,000.  Following this disposal, Ecemex
ceased to be a subsidiary in the KLK Group.

The original cost of investment in the subsidiary was o446,000.

Based on its latest audited accounts as at 30 September 2002,
Ecemex had a negative net tangible asset of GBP714,000 with
accumulated losses of GBP873,000.

The above disposal resulted in an exceptional gain of GBP200,000
which will not have any material effect on KLK Group's earnings
per share and net tangible assets based on KLK's latest accounts
as at 30 September 2002.

Save through KLK, none of the Directors, substantial shareholders
of KLK or persons connected with them has any interest, direct or
indirect, in the disposal of Ecemex.


INNOVA: Moody's Confirms B3 Ratings, Changes Outlook To Positive
----------------------------------------------------------------
Moody's Investors Services confirmed its Senior Implied Rating of
B3 rating on Innova S.R.L., and changed the rating outlook from
Stable to Positive. The ratings agency also confirmed its Senior
Unsecured Notes 2007 rating of B3. According to the ratings
agency, the ratings reflect the Company's high financial
leverage, weak coverage of interest and fixed charges, intense
competition, and susceptibility to volatile economic conditions
and adverse currency exchange rate fluctuations.

However, the Company's status as the largest pay-TV company in
Mexico. Its national coverage, large and growing size of the
Company's subscriber base, strong sponsorship from majority
equity owners Televisa and NewsCorp, and good prospects for
further near-term growth given current market and competitive
conditions also helped.

The positive outlook incorporates improving operating performance
by the Company during recent periods, expectations that cash flow
growth will accelerate now that the perceived subscriber base
inflection point has been reached, and the high likelihood that
certain external events will have a favorable impact on the
Company and its business prospects, said the ratings agency.

In the meantime, Moody's believes that the Company will be able
to grow free cash flow based on continued under-penetration of
the pay-TV market in Mexico, limited market share gains, ongoing
success with its differentiated programming strategy, declining
subscriber acquisition costs, more competitive upfront fees,
further economies of scale and possible cancellation of the tax
on pay-TV services. Moody's expects this to cover the expected
decline in the ARPU levels.

Lastly, Moody's said that the Company's ratings could be upgraded
if both its operating performance and free cash flow generation
improve at faster-than-expected rates, which would be due mainly
to a growing pay-TV market, further market share gains, stable
ARPU levels, higher margins and lower-than-expected investments.
Another reason for an upgrade would be a significant reduction of
leverage.

Moody's said that Innova needs to strengthen its financial
profile in anticipation of a more competitive environment. In
addition, the ratings agency believes that the Company has
reached a critical mass, which should enable it to generate
improved economies of scale, in particular regarding programming
costs.


PVI INC: Completes Sale of Assets
---------------------------------
Princeton Video Image, Inc. (OTCBB: PVII). Princeton Video Image,
Inc. ("Princeton Video Image") announced Wednesday that it has
completed the sale of substantially all of its assets pursuant to
Section 363 of the U.S. Bankruptcy Code to PVI Virtual Media
Services, LLC, a newly formed entity owned by Princeton Video
Image's two secured creditors and largest stockholders. PVI
Virtual Media Services is continuing Princeton Video Image's
business under the name PVI.

PVI Virtual Media Services provided Princeton Video Image with
interim financing to fund its post-petition operating expenses.
In light of the completion of the asset sale, Princeton Video
Image expects to file shortly with the Bankruptcy Court a chapter
11 plan of liquidation that will distribute its remaining assets
to creditors in accordance with the U.S. Bankruptcy Code. It is
expected that there will be no distributions to Princeton Video
Image's shareholders under the plan and that Princeton Video
Image will subsequently be dissolved.

This press release contains forward-looking statements of
Princeton Video Image, as defined by the Private Securities
Litigation Reform Act of 1995. Actual results may differ
materially from those anticipated as a result of various risks
and uncertainties, including, but not limited to, the following:
Princeton Video Image's ability to obtain court approval with
respect to motions in the Chapter 11 proceeding or to confirm a
plan of liquidation and the uncertainty associated with motions
by third parties in the bankruptcy proceeding.

About PVI Virtual Media Services, LLC:

Operating under the name PVI, PVI Virtual Media Services is
continuing Princeton Video Image's business of providing real-
time virtual advertising, programming enhancements, virtual
product integration and targeted interactive services for
televised sports and entertainment events. It services the
advertising industry with its proprietary, Emmy award-winning
technology. Headquartered in New York City and Lawrenceville, New
Jersey, it has offices in Los Angeles, Toronto, Tel Aviv, Mexico
City and Hong Kong.



===============
P A R A G U A Y
===============

ANDE: Presents Five-Year, $340M Investment Plan To Government
-------------------------------------------------------------
Paraguay's state power company Ande submitted a five-year US$340
million investment plan to the government, reports Business News
Americas, citing the Company's president Angel Maria Recalde.
The government is yet to decide on where the funds for the
proposed investment plan will come from, said Mr. Recalde.
Possible sources are third parties, joint ventures, outsourcing
or government-backed loans.

The government is also asked to decide on a policy for
introducing natural gas for firing thermo plants. The plan covers
projects such as the installating generation equipment at the
existing Yguazo water reservoir, and modernization of the Acaray
plant. The Company also proposed the construction of 500kV line,
and a thermo plant near the capital Asuncion to back up the
existing pipeline.



=======
P E R U
=======

IMPSAT FIBER: Peru Likely To Approve Telephony Service Thursday
---------------------------------------------------------------
Juan Pacheco, Peru's communications deputy minister, indicated
that the Ministry of Transport and Communications (MTC) is
expected to approve today, Thursday, an application for the local
division of Argentina-based corporate services provider Impsat
Fiber Networks to offer fixed line telephony, reports local daily
Gestion.

If approved, Impsat would join AT&T Peru, BellSouth Peru,
Americatel Peru and Millicom Peru as a competitor in Lima to the
dominant operator Telefonica del Peru. With its pan regional
broadband network, Impsat operates in Argentina, Brazil, Chile,
Colombia, Ecuador, Mexico, Peru, Venezuela and the U.S.  The firm
provides fully integrated broadband data, Internet and voice
services.

CONTACT:  Impsat Fiber Networks Inc
          Alferez Pareja 256 (1107)
          Buenos Aires
          Argentina
          1107
          Phone: +54 11 5170-0000
          Fax:  +54 11 5170-6500
          Home Page: http://www.impsat.com
          Contacts:
          Enrique M. Pescarmona, Chairman
          Ricardo A. Verdaguer, President & Chief Executive



=================
V E N E Z U E L A
=================

PDVSA: Plans $43B Investment Over Next Five Years
-------------------------------------------------
Petroleos de Venezuela S.A. (PdVSA), Venezuela's state oil
company plans to spend some US$43 billion over the next five
years, according Felix Rodriguez, who takes charge of company
operations in the western part of the country.

Mr. Rodriguez adds that the Company plans to use 43% of the said
amount for production and exploration in Zulia State, where most
mature fields are located. Business News Americas says that crude
oil in that state is more difficult to extract.

The Company aims to improve production levels after a national
strike pushed the Company's output by as much as 90%. Although
the Company has recovered to some degree, it has not regained
pre-strike level output.




               ***********


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 America 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 Oona G. Oyangoren, Editors.

Copyright 2003.  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
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Information contained herein is obtained from sources believed to
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