/raid1/www/Hosts/bankrupt/TCRLA_Public/030905.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

          Friday, September 5, 2003, Vol. 4, Issue 176

                          Headlines


A R G E N T I N A

AT&T LATIN AMERICA: Enters Next Stage of Restructuring Process
CABLEVISION: Embarks on $797M Debt Exchange
CORNET: Last Day For Credit Check Today
EMPRESA MONTE GRANDE: Deadline For General Report Expires Today
EXCEL: Credit Authentication Ends Today

GEMAR PLATIC: Last Day For Credit Authentication Today
GRA CAS: Receiver Closes Credit Verification Process
INGENIO TEXTIL: Court Assigns Receiver For Bankruptcy Process
IRSA/CRESUD: Wants More Time To File Annual Reports
LETRA Y COLOR: Court Orders Bankruptcy

PETROBRAS ENERGIA: Hydro-Quebec Interested in Transener Stake
PRO: Individual Reports Due Today
RAGHSA: Local S&P Assigns Speculative Grade Rating to Bonds
SELVA LUIS: Individual Reports Due Today
TGS: $1.3B of Bonds Receive `D' Rating from Evaluadora


B E R M U D A

GLOBAL CROSSING: Debt Cancellation with BankBoston Approved
LORAL SPACE: Brazilian Unit Signs Agreement With Rede TV


B R A Z I L

ELETROPAULO METROPOLITANA: Moody's Withdraws Ratings
GERDAU: Chilean Unit To Rejoin Metals Industry Association
MRS LOGISTICA: Plans To Break Transportation Record
TUPY: Plans BRL475 Promissory Note Issue


D O M I N I C A N   R E P U B L I C

EDENORTE/EDESUR: WB Concerned About Government's Intentions

*IDB Reaffirms Support To DR Following Agreement With IMF


J A M A I C A

C&WJ: Firing 200 Workers By Month's End
GMC: Joslin Jamaica Puts Apartments Into Receivership
GRIMAX ADVERTISING: Closes Down Business, Owner Vows To Come Back
JPSCo: Unhappy With IDT's Ruling


M E X I C O

GRUPO ELEKTRA: Fitch Affirms FC, LC Ratings at 'BB-'


P A R A G U A Y

COPACO: Union Head Reveals $50M Infrastructure Project Budget


T R I N I D A D   &   T O B A G O

CARIBBEAN ISPAT: Workers Stage Strike Over Pension Plans
CARLISLE TIRE: Minister Tours Facility


U R U G U A Y

UTE: Losing $36M Annually To Theft, Fraud


V E N E Z U E L A

PDVSA: Minister Expects Final Signing of JV Deal By End-Nov.
SINCOR: Achieves 200,000b/d Production

     -  -  -  -  -  -  -  -

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

AT&T LATIN AMERICA: Enters Next Stage of Restructuring Process
--------------------------------------------------------------
AT&T Latin America Corp. (ATTL.PK) is pleased to announce that it
is entering the final stages of restructuring.

On Tuesday, Sept. 2, AT&T Latin America completed the next step
in the restructuring process by signing a Purchase Agreement with
Embratel Participacoes S.A. (Embratel) (NYSE:EMT), and filing the
appropriate motions with the U.S. Bankruptcy Court for the
Southern District of Florida (U.S. Bankruptcy Court). Under the
agreement, Embratel shall purchase all of the ATTL operating
subsidiaries in Argentina, Brazil, Chile, Colombia, and Peru.

While Embratel was selected by ATTL, the new owner will not be
determined until an auction process is complete and approval is
received from the U.S. Bankruptcy Court. ATTL expects that a
sales transaction would close within a couple of months following
entry of the final sale order by the Court.

Throughout the process, ATTL remains focused on meeting customer
commitments, and ensuring the operational and financial
objectives are met.

About AT&T Latin America

AT&T Latin America Corp., headquartered in Washington, D.C., is a
facilities-based provider of integrated business communications
services in five countries: Argentina, Brazil, Chile, Colombia
and Peru. The Company offers data, Internet, voice, video-
conferencing and e-business services.

CONTACT:  AT&T Latin America Corp.
          Cesar Amaro
          Phone: 011-562-241-4818
          Email: cesar.amaro@attla.com
             or
          Catherine Castro
          Phone: +1-202-689-6336
          Email: catherine.castro@attla.com


CABLEVISION: Embarks on $797M Debt Exchange
-------------------------------------------
Argentine cable television operator Cablevision SA offered to
refinance US$797 million in debt it defaulted on last year.

According to Bloomberg, the Company, which is being advised by
Merrill Lynch & Co., offered to buy back US$270 million in debt
at US$99.9 million, or 37% of face value. The Company's two
largest shareholders, U.S. buyout fund Hicks, Muse, Tate & Furst
Inc. and Liberty Media Corp., would contribute US$45 million for
the buyback.

Holders of the remaining US$527 million were offered two
alternatives: First, exchange their debt for one nine-year step-
up bond and a one 10-year convertible bond for a total of US$390
million. Second, exchange their debt for one step-up bond and one
convertible bond totaling US$321.6 million plus an equity stake
of as much as 30% in the Company.

The step-up bonds would pay 3% interest in the first year, 4% in
the second year, 5% in the third and fourth year, 6% in the fifth
and sixth year and 8% in the seventh, eight and ninth year.

The convertible bond will have a 6% interest rate to be paid in
more of the same convertible bonds, the Company said.

"It's a reasonable offer in line with market expectations," said
Rafael Ber, an analyst and Argentine Research in Buenos Aires. "I
believe it will be successful." The company's bonds are quoted at
about 36 cents on the dollar in the Buenos Aires Stock Exchange,
Ber said.

After the swap, Hicks and Liberty would remain Cablevision's
largest shareholders, Cablevision said.


CORNET: Last Day For Credit Check Today
---------------------------------------
Today is the last day for credit verification period for the
reorganization of Mercedes-based company Cornet Juan Carlos y
Taverne Marcelo Jose S.H., an earlier report by the Troubled
Company Reporter - Latin America indicated.

The Company obtained permission to undergo reorganization from
the Civil and Commercial Tribunal of Mercedes, said the report.
The court-appointed receiver, Ms. Maria Ledesma, will now prepare
the individual reports.

The receiver is also required to prepare a general report.
However, local sources did not reveal the deadlines for the
filing of these reports.

CONTACT:  Maria L. Ledesma
          Calle 28 No. 524
          Mercedes


EMPRESA MONTE GRANDE: Deadline For General Report Expires Today
---------------------------------------------------------------
The deadline for filing the general report for the reorganization
of Argentine Empresa Monte Grande S.A. (Linea 501) expires today.
The Company's receiver, Dr. Sandra Moniza Rizzo was ordered by
the court to prepare the report.

The Company received permission to reorganize from the Civil and
Commercial Court of Lomas de Zamora, revealed a local source. The
receiver has completed the credit verification process and has
submitted the individual reports to the court on June 27 this
year.

CONTACT:  Dr. Sandra Monica Rizzo
          Phone: 4299-4555
          Email: smrizzo@cponline.org.ar


EXCEL: Credit Authentication Ends Today
---------------------------------------
Today, September 5, is the last day for the credit authentication
process for the bankruptcy of Buenos Aires-based Excel
Computacion S.A., according to an earlier report from local news
source Infobae.

The court-appointed receiver, Mr. Claudio Jorge Haimovici, who
verified creditors' claims, will prepare the individual reports.
The Troubled Company Reporter - Latin America earlier said that
the deadlines for the individual and general reports are November
17 and December 11, respectively.

CONTACT:  Claudio Jorge Haimovici
          Serrano 985
          Buenos Aires


GEMAR PLATIC: Last Day For Credit Authentication Today
------------------------------------------------------
Creditors of bankrupt Gemar Platic S.A. must have their claims
verified by the Company's receiver, Ms. Flora Marcela Pasos,
today, as the deadline for credit authentication expires.

An earlier report by the Troubled Company Reporter - Latin
America indicated that Buenos Aires' Court No. 5 declared the
Company bankrupt, granting a request filed by the Company's
creditor, Obra Social del Personal de la industria del Plastico.
The Company reportedly failed to meet its obligations on some
$39,871 of debt to the union.

The receiver will now prepare the individual reports on the
process. Argentine bankruptcy and insolvency laws stipulate that
the receiver is also to prepare a general report on the
proceedings. However, local news sources did not indicate the
deadlines for these reports.

CONTACT:  Gemar Platic S.A.
          Crisostomo Alvarez St. No. 3758
          Buenos Aires

          Flora Marcela Pasos
          1st Floor
          Montevideo 527
          Buenos Aires


GRA CAS: Receiver Closes Credit Verification Process
----------------------------------------------------
Mr. Rodolfo Cuecas, the receiver for Gra Cas S.A., closes the
credit verification process for the Company's reorganization
process today, September 5, 2003. Court No. 2 of La Rioja, which
handles the Company's case, ordered the receiver to start
preparing the individual reports.

Aside the verifying claims and preparing the individual reports,
the receiver is also required to file a general report on the
proceedings by October 28. The Company's reorganization follows
the court's approval of its motion for "Concurso Preventivo".

CONTACT:  Gra Cas S.A.
          San Nicolas de Bari
          La Rioja

          Rodolfo Cuevas
          Ave. de Mayo 167
          La Rioja


INGENIO TEXTIL: Court Assigns Receiver For Bankruptcy Process
-------------------------------------------------------------
Court No. 20 of Buenos Aires designated Mr. Francisco Cipriotti
as receiver for the bankruptcy of local textile manufacturer
Ingenio Textil S.R.L., relates local news portal Infobae.

Earlier, the Court granted a bankruptcy petition filed by the
Company's creditor, Textil Ibera S.A., the report recalls. The
Company failed to make payments on some ARS37,437 and US$10,000
of debt to Textil Ibera.

The receiver is ordered to verify creditors' claims until October
31 this year. He is also required to prepare individual and
general reports on the process, but the source did not indicate
whether the court has set the deadlines for these reports.

CONTACT:  Ingenio Textil S.R.L.
          Acevedo 930
          Buenos Aires

          Francisco Cipriotti
          8th Floor C
          Ave. Belgrano 615
          Buenos Aires


IRSA/CRESUD: Wants More Time To File Annual Reports
---------------------------------------------------
Argentina's stock exchange is to decide on a request by some
local companies to extend the deadline to file their annual
reports, says Dow Jones.

Local real estate company Inversiones y Representaciones S.A.
(IRSA) and its sister unit, farming company Cresud S.A. are
requesting for a three-day extension. In separate, but almost
identical filings to the local stock exchange, Cresud, IRSA and
its subsidiaries, Alto Palermo S.A. and Shopping Alto Palermo
S.A., sought for the extension because of the "difficulties"
created by new accounting rules and attempts to come up "with a
long-term revaluation of the company's new businesses."

The companies, all of which are run by a consortium run by local
businessman Eduardo Elsztain, were due to report their earnings
in the first days of September.

CONTACT:  IRSA
          Gustavo Mariani, Finance Manager
          +011-54-11-4323-7413
          Web site:  http://www.irsa.com.ar


LETRA Y COLOR: Court Orders Bankruptcy
--------------------------------------
Dr. Paez Castaneda, insolvency judge in Buenos Aires Court No.
21, declared local company Letra y Color S.R.L. bankrupt, reports
local newspaper La Nacion. The ruling came after the Company's
creditor, Ramon Acuna, sought for the Company's bankruptcy for
nonpayment of debt.

The court, which works with Dr. Barreiro, the city's Clerk No.
42, assigned Ms. Isabel Ramirez as the Company's receiver. The
deadline for verification of credit claims is April 27 next year.
However, the report did not mention whether the court has set the
deadline for the individual and general reports.

CONTACT:  Letra y Color S.R.L.
          Bolivar 419
          Buenos Aires

          Isabel Ramirez
          2nd Floor Room D
          Tte. Gral. Peron 2082
          Buenos Aires



PETROBRAS ENERGIA: Hydro-Quebec Interested in Transener Stake
-------------------------------------------------------------
Canadian electricity company Hydro-Quebec, has shown interest in
Petrobras Energia Participacoes' 35% stake in Transener. Hydro-
Quebec is the first large foreign group to show interest in the
stake, according to an article released by South American
Business Information.

Petrobas Energia, formerly known as Perez Companc, met much
opposition when it acquired its Transener stake. Local groups
Roggio, Pescarmona and Techint were against it, saying a
strategic company should not be controlled by foreign capital.
Brazil's state oil company, Petrobras, owns Petrobras Energia.

Hydro-Quebec operates one of North America's largest transmission
networks, it sells wholesale energy in the US and Canada and has
international energy interests. The company also has Canadian gas
distribution interests, invests in alternative energy
technologies, and offers construction and procurement services.
To prepare for utility deregulation, the Qu‚bec-owned utility has
split its operations into separate generation, transmission, and
distribution units.

CONTACT:  Petrobras Energia Participaciones S.A.
          Piso 22
          Maipu1
          Buenos Aires
          Argentina C1084ABA
          Phone: +54 11 4344 6000
          Fax: +54 11 4344 6315
          Home Page: http://www.pecom.com.ar
          Contact:
          Jose Eduardo de Barros Dutra, Chairman
          Nestor Cunat Cervero, Vice Chairman

          Hydro-Qu‚bec
          75 Ren‚-L‚vesque Blvd. West
          Montreal, Quebec H2Z 1A4, Canada
          Phone: 514-289-2211
          Fax: 514-289-5440
          Home Page: http://www.hydroquebec.com
          Contact:
          Jacques Laurent, Chairman
          Andr‚ Caill‚, President, CEO
          Marie-Jos‚ Nadeau, EVP, Corporate Affairs and
                                      Secretary General


PRO: Individual Reports Due Today
---------------------------------
Mr. Eduardo Bauza, receiver for Pro S.R.L., is required to hand
in the individual reports regarding the Company's reorganization
today. The credit verification process was closed on July 7,
according an earlier report by local news portal Infobae.

The Civil and Commercial Tribunal of Mendoza approved the
Company's motion for "Concurso Preventivo", granting it
permission to undergo reorganization. The court ordered the
receiver to verify creditors' claims and prepare the individual
and general reports.

Infobae said that the deadline for the general report is December
5 this year. An informative assembly will be held on June 8 next
year.

CONTACT:  Mr. Eduardo Bauza
          Martinez de Rosas 1015
          Provincia de Mendoza


RAGHSA: Local S&P Assigns Speculative Grade Rating to Bonds
-----------------------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
rates US$33 million of bonds issued by local company Raghsa S.A.
'raB', relates the country's securities regulator, CNV. The
Company's finances as of the end of May this year, determined the
given rating.

The rating, which was issued on Monday, denotes that the bonds
face exposure to adverse business or economic conditions, which
could lead to the Company's inadequate capacity to meet its
financial commitment, said the ratings agency.

The CNV described the affected bonds as "Obligaciones
Negociables", under "Simple Issue". These come due on February
28, 2012.


SELVA LUIS: Individual Reports Due Today
----------------------------------------
The individual reports for the reorganization of Selva Luis Selva
Carlos S.H. are due for submission today. The Company's receiver,
Ms. Maria Rosa del Valle Bustamante, prepared the reports upon
the completion of the credit verification process.

The Civil and Commercial Court of Pergamino granted the Company
permission to undergo reorganization by approving the Company's
motion for "Concurso Preventivo".

The court also requires the receiver to prepare a general report
on the process. This report should be presented to the court on
November 11. An informative assembly will be held on May 14 next
year.

CONTACT:  Selva Luis Selva Carlos S.H.
          Calle 30 No. 3812
          Mercedes

          Maria Rosa del Valle Bustamante
          Ave. Roca 814
          Pergamino


TGS: $1.3B of Bonds Receive `D' Rating from Evaluadora
------------------------------------------------------
A total of US$1.3 billion of corporate bonds issued by
Transportadora de Gas del Sur S.A. received default ratings from
Evaluadora Latinoamericana S.A. Calificadora de Riesgo on Monday.

The `D' rating applies to US$500 million of "Programa Global de
1996 por U$S 500.000.000", and another US$500 million of
"Programa Global de 1999". Some US$300 million more are described
as "Programa Global de 2000". Argentina's securities regulator,
Comicion Nacional Valores (CNV), said that the bonds were all
classified under "Program"

A `D' rating is issued to bonds that are in default, said the
ratings agency. The rating was based on the Company's finances as
of the end of June this year



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

GLOBAL CROSSING: Debt Cancellation with BankBoston Approved
-----------------------------------------------------------
The Global Crossing Debtors and BankBoston, N.A. entered into a
Master Participation Agreement on January 29, 2001. Within this
Master Agreement, BankBoston agreed to extend the Loans to South
American Crossing Ltd. subsidiaries -- SAC Chile S.A., SAC Peru
S.R.L., and SAC Colombia Ltda. -- the Borrowers. Each Loan is
governed by a separate loan agreement. In light of the Master
Agreement, every time BankBoston made a disbursement to any one
of the Borrowers under the Loan Agreements, South American paid
BankBoston the full amount of the disbursement. This allowed
South American to purchase full participation in each of the
Disbursements, creating an obligation on BankBoston's part to
repay South American.

The Master Agreement provides that upon BankBoston's receipt of
any payment from the Borrowers, BankBoston will pay the amount,
subject to certain interest rate adjustments, to South American.
Notwithstanding the structure of the Loans, and pursuant to US
GAAP rules, the Debtors treated the amounts owed to BankBoston by
the Borrowers as intercompany debt between the Borrowers and
South American.

Since South American purchased a full participation in the Loans
from BankBoston, BankBoston owes South American $51,870,592,
broken down as:

(1) SAC Chile -- $21,814,361

(2) SAC Colombia -- 16,883,679

(3) SAC Peru -- 15,406,290

In addition to the Master Agreement and the Loans, Paul M. Basta,
Esq., at Weil Gotshal and Manges LLP, in New York, informs the
Court that BankBoston entered into a Private Placement and Agency
Agreement with SAC Brazil on January 29, 2001. Under the
Placement Agreement, SAC Brazil appointed BankBoston as its
placement agent for the sale of Floating Rate Notes, issued in
the aggregate principle amount of $350,000,000. South American
purchased the Notes in the principle amount of $185,789,028 from
SAC Brazil, with BankBoston acting as the placement agent.

Although SAC Brazil is indebted to South American under the
Notes, Mr. Basta points out that the Debtors' Schedule F
erroneously lists BankBoston as a creditor of SAC Brazil.
Accordingly, the Debtors and BankBoston agreed to amend Schedule
F to reflect South American's ownership of the Notes.

Mr. Basta notes that Chilean, Colombian and Peruvian laws provide
that any discharge of indebtedness is recognized as income. Thus,
if the Debtor-Borrower were to receive a discharge of the Loans
under Section 1141(d) of the Bankruptcy Code and the Plan, they
will be deemed to have taxable income in the amount discharged.
In each instance, Mr. Basta explains, the taxable income caused
by the discharge of indebtedness would trigger a tax liability
under applicable local law, since there would be insufficient
losses to cover the additional income.

To prevent the application of local regulations related to the
Discharge Taxes, the Debtors decided to restructure the Chilean
and Colombian Loans to remove BankBoston's involvement. This will
allow South American to become the lender of record to the
Borrowers, thus maintaining the functionality of the current
funding arrangement. Restructuring the Loans will have no
financial impact, adverse or otherwise, on the Debtors' estates
or any of their creditors.

The Debtors are faced with an additional issue regarding the Peru
Loan. Pursuant to Peruvian law, in addition to the Discharge Tax,
SAC Peru would be required to pay a substantial withholding tax
on the Peru Loan if the Debtors were to restructure the Peru Loan
in a similar manner to the Chile and Colombia Loans. To minimize
this exposure, the Debtors and BankBoston agreed to amend (i) the
Loan Agreement that governs the Peru Loan and (ii) the Master
Agreement with respect thereto, to provide that, among other
things, the Peru Loan will remain in place, and not be
discharged, after the effective date of the Plan.

The Debtors also agreed that, in respect to one of the Loans, the
Borrowers' obligation to BankBoston will remain after the Debtors
emerge from Chapter 11.

Accordingly, the Debtors ask the Court to approve, pursuant to
Sections 105 and 363 of the Bankruptcy Code:

(1) a Loan Assignment from BankBoston to South American; and

(2) the cancellation of Loans from South American to
    BankBoston.

To effect the restructuring of the Loans, South American,
BankBoston and the Borrowers will enter into four separate
transactions:

(1) an Assignment Agreement between South American,
    BankBoston and SAC Chile of the Chile Loan -- the Chile
    Assignment;

(2) an Assignment Agreement between South American,
    BankBoston and SAC Colombia of the Colombia Loan -- the
    Colombia Assignment;

(3) certain amendments to the Peru Loan -- the Peru
    Amendments; and

(4) an Arrangement Agreement that summarizes the agreement
    between South American and BankBoston, with respect to the
    Loan Restructurings.

The Chile Assignment states that:

(a) South American will cancel its 100% participation in the
    Chile Loan in its entirety. Upon cancellation, BankBoston
    will have no more payment obligations to South American
    under the Master Agreement with respect to the Chile
    Loan;

(b) BankBoston will assign and transfer its rights, title,
    interest and obligations in the Chile Loan to South
    American. The transfer will take effect, without
    recourse, through BankBoston's endorsement of the
    promissory notes that serve as evidence to the Chile Loan;

(c) SAC Chile will execute a full release for any claims it
    may have against BankBoston with respect to the Chile
    Loan; and

(d) BankBoston will execute a full release of South American
    and SAC Chile for any claims it may have against them with
    respect to the Chile Loan.

The Colombia Assignment provides that:

(a) South American will cancel its 100% participation in the
    Colombia Loan in its entirety;

(b) BankBoston will assign and transfer its rights, title,
    interest and obligations in the Colombia Loan to South
    American. The transfer will take effect, without
    recourse, through BankBoston's endorsement of the
    promissory notes that serve as evidence to the Colombia
    Loan;

(c) SAC Colombia will execute a full release for any claims it
    may have against BankBoston with respect to the Colombia
    Loan; and

(d) BankBoston will execute a full release of South American
    and SAC Colombia for any claims it may have against them
    with respect to the Colombia Loan.

The salient terms of the Peru Amendments are:

(a) Subject to a Court order, the Peru Loan will remain in
    place after the Effective Date. SAC Peru will maintain
    its obligation to repay the Peru Loan;

(b) BankBoston will maintain its obligations to repay South
    American in connection with the Peru Loan under the
    Master Agreement;

(c) The Peru Loan Agreement is amended to relieve BankBoston's
    obligation to advance any further funds to SAC Peru;

(d) The Master Agreement is amended to reflect that:

(i) only the Peru Loan remains in place; and

(ii) no further funds can be drawn by any of the,
     Borrowers; and

(e) The Arrangement Agreement will include an indemnity
    provision stating South American's obligation to
    indemnify and hold BankBoston and its related parties
    harmless from all claims, demands, liabilities, actions,
    causes of action, losses and expenses, both legal and
    equitable, arising from the Peru Loan for as long as
    BankBoston has not been determined to have engaged in
    willful misconduct or committed gross negligence.

Mr. Basta asserts that the contemplated transactions should be
approved because:

(1) the Loan Assignments minimizes tax exposure in Colombia;

(2) the Loan Assignments will convert the Colombia Loan to
    intercompany debt, which is not subject to discharge
    under the Plan;

(3) transferring the Loans to South American will free
    SAC Colombia of large tax liabilities when the Loans are
    discharged under Section 1141;

(4) the transactions contemplated by the Loan Assignments
    will have no detrimental effect on the Debtors, their
    creditors, or other parties-in-interest;

(5) a discharge of obligations by the Borrowers will trigger
    Discharge Taxes in Colombia and Peru;

(6) by allowing the Debtors to maintain in place after the
    Effective Date the Peru Loan and BankBoston's obligation
    to South American, the Court recognizes its functionality
    as an intercompany arrangement;

(7) the Peru Amendment will eliminate a significant dollar
    tax exposure for the Debtors; and

(8) the Peru Loan in place will not have any net effect on
    the Debtors' estates or creditors as BankBoston is
    obligated only to repay South American from the proceeds
    it receives from SAC Peru.


Judge Gerber approve[d] the Debtors' cancellation of debt between
South American and BankBoston, in relation to the Chile Loan
Agreement, Colombia Loan Agreement and Peru Loan Agreement.
BankBoston's claims against SAC Peru will remain after the
Debtors' emergence from Chapter 11 and will not be discharged.
(Global Crossing Bankruptcy News, Issue No. 46; Bankruptcy
Creditors' Service, Inc., 609/392-0900)


LORAL SPACE: Brazilian Unit Signs Agreement With Rede TV
--------------------------------------------------------
Loral Skynet do Brasil, Ltd., a wholly owned subsidiary of Loral
Space & Communications (OTCBB: LRLSQ), has signed an agreement
with Rede TV, one of Brazil's largest television networks, to
provide satellite capacity on Telstar 12 for coverage of Campos
do Jordao, Brazil's winter festival held throughout the country
during June, July and August, and for Championship Auto Racing
Teams' (CART) events throughout Brazil.

For Campos do Jordao, Loral Skynet do Brasil transmitted
programming from three to ten hours several times per week,
including interviews, fashion shows, celebrity performances and
entertainment games. The transmissions were broadcast live from
Campos do Jordao venues in Ku-band on Telstar 12 and the customer
retransmitted from Sao Paulo in C-band for distribution
throughout Brazil.

"We are very happy with the service we receive from Loral Skynet
do Brasil," said Wagner Victoria, technical director, Rede TV.
"We are working to develop new live programming projects and look
to Loral Skynet do Brasil to provide the coverage our growing
company requires."

CART auto racing events will be broadcast from Telstar 12 each
weekend through the end of the year.  From racetracks around the
world, Brazilian viewers enjoy CART's open-wheel "Champ Cars,"
thoroughbred racing machines that reach speeds in excess of 200
miles per hour.

According to Terry Hart, president, Loral Skynet, a subsidiary of
Loral Space & Communications, "We are pleased that we can assist
Rede TV with their innovative television programming in Brazil.
The flexibility we can offer to them for their long-term
occasional use services makes it easy for Rede TV to schedule on-
the-spot live programming whenever they need it."

Telstar 12, a satellite of Loral Skynet, covers the eastern part
of the US as far west as Atlanta, most of South America, South
Africa, Europe and as far East as Moscow, and the United Arab
Emirates. The satellite provides transoceanic service for video
broadcast, satellite newsgathering, business television, high-
speed Internet access and private networking services.

Loral Skynet do Brasil, Ltd., a wholly owned subsidiary of Loral
Space & Communications, is the first private Brazilian satellite
company offering Ku-band services, formed primarily to address
opportunities in the fixed satellite services market in Brazil
and South America. Loral Skynet do Brasil's first satellite,
Estrela do Sul 1, will be launched in early 2004 into Brazil's 63
degrees West longitude orbital slot. The company has a ground
station in Rio de Janiero that will provide tracking, telemetry,
and control and access management from in-country technical
staff.  Loral Skynet do Brasil has access to a global fleet of
satellites and terrestrial resources through the Loral Global
Alliance. Loral Skynet do Brasil is the legal representative for
Telstar capacity in Brazil.

A pioneer in the satellite industry, Loral Skynet continues to
deliver the superior service quality and range of satellite
solutions that have made it an industry leader for more than 40
years. With its fleet of satellites and its established hybrid
VSAT/fiber global network infrastructure, Skynet offers a unique,
single source for all broadcast, data network, Internet access
and IP needs. Headquartered in Bedminster, New Jersey, Skynet is
dedicated to providing secure, high-quality connectivity and
communications. For more information, visit www.loralskynet.com.

Rede TV, a national Brazilian public television network, is one
of the largest television networks in Brazil.  Currently, they
have the third largest viewing audience and in three years have
increased their coverage by 480%, jumping from 5 to 29 affiliate
stations and covering more than 85% of the nation, which
represents about 3,500 municipalities throughout Brazil.  For
more information, visit http://www.redetv.com.br/.

In addition to being the parent company of Loral Skynet, Loral
Space & Communications is a world-class leader in the design and
manufacture of satellites and satellite systems for commercial
and government applications through its Space Systems/Loral
subsidiary. For more information, visit www.loral.com.

This document contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as
amended. In addition, Loral Space & Communications Ltd. or its
representatives have made or may make forward-looking statements,
orally or in writing, which may be included in, but are not
limited to, various filings made by the company with the
Securities and Exchange Commission, press releases or oral
statements made with the approval of an authorized executive
officer of the company. Actual results could differ materially
from those projected or suggested in any forward-looking
statements as a result of a wide variety of factors and
conditions.  These factors include those related to the filing,
on July 15, 2003 by Loral and certain of its subsidiaries, of
voluntary petitions for reorganization under Chapter 11 of Title
11 of the United States Code in the United States District Court
for the Southern District of New York and parallel insolvency
proceedings in the Supreme Court of Bermuda in which certain
partners of KPMG were appointed as joint provisional
liquidators.  Additional factors and conditions are also
described in the section of the company's annual report on Form
10-K for the fiscal year ended December 31, 2002, entitled
"Certain Factors That May Affect Future Results," and the
company's other filings with the Securities and Exchange
Commission. The reader is specifically referred to these
documents.

PRESS CONTACT:  Amy Trowbridge
                (908) 470-2495
                atrowbridge@loralskynet.com

INVESTOR CONTACT:  John McCarthy
                   (212) 338-5345



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

ELETROPAULO METROPOLITANA: Moody's Withdraws Ratings
----------------------------------------------------
Moody's withdrew Wednesday the ratings on Eletropaulo
Metropolitana Eletricidade de Sao Paulo S.A., South America's
largest electric distribution company in terms of revenues.

The ratings withdrawn were Eletropaulo's Caa1 issuer rating on
global local currency scale and Caa1 issuer rating on foreign
currency scale. At the time of the withdrawal, the rating outlook
was negative.

The withdrawal came at the issuer's request and reflecting
limitations on the ability to monitor its creditworthiness.

The Caa1 issuer ratings on the global local and foreign currency
scales reflect Moody's concern about Eletropaulo's financial
stress and continued lack of success in assuring adequate
liquidity to meet its near term debt maturities.

In addition, the ratings reflect Eletropaulo's foreign currency
debt, while tariffs do not adequately compensate the Company for
the devaluation of the Real and financial pressure from the debt
of its holding company AES Elpa.

The parent company is in default on payments to the BNDES in the
approximate amount of US$600 million. It appears that the BNDES
is moving forward on its intention to auction off the 74.8% of
Eletropaulo's voting capital that is held by AES Elpa.


GERDAU: Chilean Unit To Rejoin Metals Industry Association
----------------------------------------------------------
Gerdau Aza, the local unit of Brazil's Gerdau, will rejoin the
local metals industry association Asimet, Chilean newspaper El
Diario Financiero reports. Gerdau Aza chief executive Hermann von
Muhlenbrock indicated that the move is likely to take place
before the year ends.

The Company, along with CAP, Chile's largest steel company, quit
the association last year over disagreements on safeguards on
steel imports. According to Business News Americas, the two
Companies asked the government to impose the restrictions, but
the association objected on grounds that most of its fabricator
members use steel as a raw material.

To resolve the issue, the government introduced limited
safeguards, which expired last June. Recently Gerdau Aza and CAP
have indicated that the restrictions are no longer necessary
because of higher steel prices and their improved financial
results, the report adds.

Mr. Muhlenbrock added that CAP is likely to seek re-membership
into the reorganization.

CONTACT:  Gerdau S.A.
          Avenida Joao XXIII, 6777
          Santa Cruz
          23560 - 900 Rio de Janeiro - RJ
          Brazil
          Phone: +55 21 2414-6000
          Fax: +55 21 2414-6243
          Telex: 23423
          Home Page: http://www.gerdau.com.br
          Contact:
          Jorge Gerdau Johannpeter, Chairman


MRS LOGISTICA: Plans To Break Transportation Record
---------------------------------------------------
Brazilian railroad concessionaire MRS Logistica aims to register
at least 85 million tons in transportation services, according to
South American Business Information. Majority of this figure is
expected to come from the transportation of iron ore.

Last month, the Company moved some 7.758 million tons, and 7.548
million tons in July, said the report. The continued upward trend
since it posted a 7.368 million ton movement in May has the
Company aiming at moving at least 93 million tons next year.

The Company has shown improvement this year following a BRL154.87
million net loss last year. In fact, it claimed a BRL110.7 net
profit for the first six months of this year.

An earlier report by the Troubled Company Reporter - Latin
America said that the accomplishments were possible as a
consequence of the massive capital expenditure program in place
over the last years, primarily applied in the overhauling and
acquisition of rolling stock, track maintenance, technological
development, productivity increase and the improvement in the
quality of the Company's workforce.

CONTACT:  MRS LOGISTICA
          Praia de Botafogo, 228/1201-E
          Rio de Janeiro - RJ, 22250-906 - Brazil
          Tel: 021-2559-4600
          Fax: 021-2552-2635
          E-mail: daf@mrs.com.br
          Home page: www.mrs.com.br
          Contacts:
          Eduardo Cassinelli - Treasurer
          Marco Andr, Guimaraes - Financial Manager
          Maria Lœcia Silveira - Financial Analyst


TUPY: Plans BRL475 Promissory Note Issue
----------------------------------------
A spokesperson from Brazilian metals foundry Tupy confirmed the
Company's plans to issue BRL475 million in promissory notes.
Business News Americas reported that the notes are likely to be
issued on local capital markets.

"The funds are part of the financial restructuring of the
company," the report quoted the spokesperson as saying.

The Company, which is based in Joinvilla, wants to pay 103% of
interbank deposit certificates CDI, lower than the 118% CDI it
had to pay on its last issue in March, said the report.

Tupy's main activities are the manufacture and selling of smelted
iron parts for the automobile industry, spare parts for the
engine, braking, transmission, steering, axle and suspension
systems, cast iron tools and bars from gray and nodular iron,
pipe fittings and metal abrasives. It also makes smelted iron
connections for hydraulic and gas networks, iron and steel
granules for use in surgery, the foundry, the ornamental rock and
glass industry and civil construction.

CONTACT:  Tupy SA
          Rua Albano Schmidt, 3.400
          Boa Vista
          89206-900 Joinville - SC
          Brazil
          Phone: +55 47 441-8514
          Fax: +55 47 441-8321
          Home Page: http://www.tupy.com.br
          Contact:
          Francisco Parra Valderrama, Chairman



===================================
D O M I N I C A N   R E P U B L I C
===================================

EDENORTE/EDESUR: WB Concerned About Government's Intentions
-----------------------------------------------------------
The Dominican Republic government's plan to intervene power
distributors Ede-Norte and Ede-Sur spurred concerns from the
World Bank.

According to a report released by DR1 Daily News, the World Bank,
through the Multilateral Investment Guarantee Agency (MIGA),
voiced its concerns in a letter sent to the Superintendent of
Power, George Reinoso, on 28 August.

The letter said, in part, that the MIGA was concerned that
intervention in two of the three power distributors is being
proposed as a solution to the electricity problems plaguing the
Dominican Republic, regardless of whether it be carried out by
the Inter American Development Bank or the Dominican state.

MIGA's general legal counselor, Lorin Weisenfeld, said that
independent of the possible discriminatory nature of the
intervention, "it is the general opinion that the electricity
problem of the Dominican Republic is sector-related, not
distribution-related."

The World Bank is also worried by the fact that the two
distributors are being treated as one entity, when both legally
and financially speaking, they are two separate bodies, despite
being affiliates of the same Spanish company, which is Union
Fenosa.


*IDB Reaffirms Support To DR Following Agreement With IMF
---------------------------------------------------------
President Iglesias praises measures for economic recovery
Inter-American Development Bank President Enrique V. Iglesias
praised Wednesday the determination of authorities in the
Dominican Republic to establish the basis of a sustainable
economic recovery following their 24-month Stand-by Arrangement
with the International Monetary Fund.

Iglesias said the authorities are taking steps to identify and
make transparent the main issues facing the economy and to
protect priority social reforms. He reiterated the desire of the
Bank to continue its support for the country and its economic and
social advancement.

The IDB president noted that "the implementation by the
government of an economic program will create the conditions to
carry out a series of reforms to stabilize the macroeconomic
framework, reduce economic and financial vulnerability in the
medium term, strengthen governance and re-establish the high
economic growth rates of the past decade, a necessary condition
to reduce poverty."

In the context of this program, the IDB is offering the country
significant technical and financial resources to support
government efforts to re-establish macroeconomic stability,
strengthen the regulatory framework and institutional capacity in
the financial sector, and, especially, to counteract the negative
social impacts of the difficult current situation.

Specifically, before the end of this year the Bank is expected to
approve about $250 million in financing to support the
consolidation of reform of the financial sector and the
protection of social spending. In addition, the Bank expects to
disburse $100 million for the Program for Institutional Reform of
the Social Sector.

These initiatives are in addition to an existing loan portfolio
of $893 million, comprised mainly of  programs that address basic
social sector needs. Of this amount, $487 million is pending
disbursement.

"Once again we reiterate our confidence in the capacity of the
Dominican economy to rebound and recover, as well as our
commitment to continue cooperation to contribute to these goals
and to reduce poverty," Iglesias concluded.



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

C&WJ: Firing 200 Workers By Month's End
---------------------------------------
For the fourth time this year, British telecommunications giant
Cable & Wireless will lay off employee's as part of a
restructuring the Company implemented to deal with increased
competition, reports the Associated Press.

The layoffs, which will take effect at the end of the month, will
affect 200 workers mostly in the network services and sales
divisions, Cable & Wireless said late Tuesday.

Cable & Wireless now employs about 2,100 workers in Jamaica, down
from about 3,200 in March 2001. The Company cut 118 jobs in July,
46 in March and another 40 in January.

Simultaneously, the Company announced it will close three of its
20 business offices on the Caribbean island, where it generates
33% of its world profits.


GMC: Joslin Jamaica Puts Apartments Into Receivership
-----------------------------------------------------
General Management Company (GMC) saw 34 of its 56 units at The
Dorchester apartment and office complex at 11 Oxford Road in
Kingston place into receivership by Joslin Jamaica, the Jamaica
Observer reports.

GMC is owned by well-known real estate developer, John Cooke.

Subsequently, the appointed receiver -the management firm
Business Recovery Services- informed tenants, who occupy 34 of
the one-bedroom and studio apartments, in a letter dated July 25,
2003 that all future rents beginning August 1, 2003, be paid over
to it.

The receivership is intended to secure payments on two loans that
were secured in the early 1990 by the developer, from National
Commercial Bank (NCB), but which Joslin Jamaica claims have
fallen past due in payment.

The developer secured a $34-million loan from NCB Trust and
Merchant Bank on August 10, 1993, and another for $75 million on
June 30, 1994.

Two yeas ago, Joslin paid the Jamaican government millions of
dollars for the right to collect debt owed to NCB and other
financial institutions that had to be saved by Finsac -- the
state-owned debt resolution company.

According to the report, the apartments were part of the assets
that were transferred to Finsac when the government had to pump
billions of dollars into NCB to stave off its collapse in 1998.
On June 6 of the current year, it was transferred to Jamaica
Redevelopment Foundation for which Joslin Jamaica is collector.


GRIMAX ADVERTISING: Closes Down Business, Owner Vows To Come Back
-----------------------------------------------------------------
Grimax Advertising Limited, one of Jamaica's oldest agencies,
closed down its operations on June this year, but its owners
insist the closure will only be temporary, the Jamaica Gleaner
relates.

"You can term this a temporary closure in the sense that we will
be back," Tricia Grindley, the daughter of Grimax chairman and
managing director, Gerry Grindley, told Wednesday Business. "We
just need to take a strategic break."

In a press release, Grindley stated: "We regret having to take
this action, but too much money was leaving the agency to cover
expenses and pay "interest debt" while income, although improving
over the last two years, was not increasing enough to keep the
company cash strong."

She went on to say: "We also found ourselves in a situation where
some establishments either refused to deem our services billable
or slashed their budgets drastically mid-campaign. This trend
placed us under tremendous financial pressure and the cycle
caught up with our ability to keep the business running."

Given the realities of Jamaica's competitive economy, the charges
at many established agencies are regarded as being high,
suggested Howard Moo Young, director of Howard Moo Young &
Associates, an advertising and graphic design firm.

Grimax should be operational again by January next year, Grindley
said.


JPSCo: Unhappy With IDT's Ruling
--------------------------------
THE Jamaica Public Service Company (JPSCo) said that the ruling
handed down last week by the Industrial Disputes Tribunal (IDT)
is difficult to implement.

The Jamaica Observer recalls that the IDT ordered JPSCo, which is
80% owned by bankrupt US-based Mirant Corporation, to stand by a
1990 understanding with Jamaican trade unions that its wages must
be in the top five to 10 percentile of a group of benchmarked
companies.

"The company's management is...concerned with the nature of the
ruling as it does not lend itself to a speedy resolution in the
absence of a clear basis and or process for implementation,"
JPSCo said.

According to the report, Mirant had attempted to use the average
rates of all the companies in the benchmarking survey to
determine its own pay scales. But the both the National Workers
Union (NWU) and the Bustamante Industrial Trade Union (BITU),
which represent two-thirds of the JPSCo staff, complained, saying
this would lower salaries, breach existing understandings and
would run counter to Jamaican labor practices.

The IDT also insisted that payment of new wage rates, resulting
from a job evaluation project, must be retroactive to the start
of 2000, rather than the start of a new contract period as JPSCo
had initially proposed.

Mirant had told the unions that its compensation philosophy did
not embrace retroactive pay.

The NWU hailed the IDT's decision, describing the light and power
company's response as "arrogant" and bordering "on sour grapes"
and impugning the integrity of the tribunal.

"The company is basically rude to have sent out such a
memorandum," said the NWU's president, Clive Dobson.



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

GRUPO ELEKTRA: Fitch Affirms FC, LC Ratings at 'BB-'
----------------------------------------------------
Fitch Ratings has affirmed the senior unsecured foreign currency
and local currency ratings of Grupo Elektra, S.A. de C.V.
(Elektra), as well as its rating on Elektra's US$275 million 12%
senior notes due 2008, at 'BB-'. Fitch Ratings has also affirmed
the national scale rating of Elektra at 'F2(mex)'. The Rating
Outlook for all ratings is Stable.

The ratings are based on the company's leading market position as
a specialty retailer of electronics, appliances and furniture, a
strong brand name and extensive nationwide store network and the
ability to provide customer financing. The installment sales
program available to Elektra's low to middle-income customer base
creates additional demand and provides a competitive advantage.
Customer financing has also helped limit revenue volatility. Due
to its strong business position and large scale economies,
Elektra maintains above average profit margins. Because revenues
are largely peso-denominated while the debt is mostly dollar-
denominated, the company is exposed to long-term foreign-exchange
fluctuations. Elektra has indicated it intends to reduce such
exposure and has recently repaid dollar debt with cash at hand
and the proceeds from the issuance of peso-denominated short-term
notes and the sale of assets to Banco Azteca.

Customer financing has been the pillar of Elektra's retail
strategy. In March 2002, Elektra received a license from the
government to operate a bank, which began operations in October
2002. Credit income from customer financing in Mexico,
historically an important contributor to profitability accounting
for approximately one fifth of revenues, will now be earned at
Banco Azteca. Banco Azteca, an unrestricted subsidiary, is not a
guarantor of Elektra's 12% senior notes and is prohibited to pay
dividends until 2006. Costs and expenses related to the provision
of credit are also being transferred to Banco Azteca, including
the costs of financing, credit investigation and collection, the
provision for doubtful accounts and a portion of rent and
corporate expenses.

The creation of Banco Azteca will benefit Elektra by broadening
the range of sources available to fund an expanding consumer
credit portfolio. As a financial institution, Banco Azteca may
fund itself at a lower average cost than Elektra. The bank also
increases the flow of existing and potential customers into
retail stores.

At June 30, 2003, Banco Azteca had 813 branches located within
Elektra's retail stores, total deposits of approximately US$315
million, total loans of approximately US$360 million and total
capital of approximately US$55 million. Deposits have grown at a
fast pace since the bank's inception. Services have initially
focused on savings accounts, consumer financing of Elektra's
durable purchases and personal loans, but will expand to debit
cards, ATM services, investment accounts, automatic service
payments, insurance products, used automobile loans and mortgages
for low-income housing. The expansion of banking services well
beyond those historically provided by Elektra may require
additional capital contributions.

Over the past several years, Elektra has been able to generate
adequate cash flows and profitability margins despite challenging
economic conditions and the deceleration of consumption in
Mexico. Although competition has increased, with other retailers
now offering credit to Elektra's target market, margins have
remained strong due to cost and expense controls and improved
credit terms with suppliers, as a result of credit sales now
being funded by Banco Azteca.

At June 30, 2003, Elektra's on-balance-sheet debt was
approximately US$374 million, representing a reduction of US$112
million from Dec. 31, 2002. Elektra also completed the
amortization of its off-balance-sheet securitization program for
approximately US$227 million. Credit protection measures should
remain consistent with Elektra's existing rating category. Fitch
Ratings estimates that by the end of 2003, the ratio of total
debt-to-EBITDAR should be around 2 times (x) and the ratio of
EBITDAR-to-interest expense plus rent should be around 3x.
Liquidity is adequate, with cash balances of more than US$270
million at June 30, 2003. Elektra has moderated its growth
strategy from previous years. Retail capital expenditure needs
are modest in relation to EBITDA and should be financed with
internally generated cash flow.

Elektra is a specialty retailer of consumer electronics,
appliances and furniture. At June 30, 2003 the company operated
the following store formats in Mexico: Elektra and MegaElektra
(631 stores), Bodega de Remates (90 stores) and Salinas y Rocha
(92 stores). Elektra also operated 63 MegaElektra stores in
Central America and Peru. In Mexico, the company offers consumer
financing and other banking services through its subsidiary Banco
Azteca.

CONTACT:  Fitch Ratings
          Giovanna Caccialanza
          Phone: 212-908-0898

          Adriana Beltran
          Phone: +52-818-335-7239

          James Jockle (Media Relations)
          Phone: 212-908-0547



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

COPACO: Union Head Reveals $50M Infrastructure Project Budget
------------------------------------------------------------
Carmelo Rios, head of Paraguay's telecoms workers union Sinattel,
said the country's incumbent fixed-line operator Copaco will
spend US$50 million this year for infrastructure projects.

In an interview with Business News Americas, Rios said that
Copaco expects to cover the projects with cash flow and loans, as
well as financing offered by some of the vendors.

Already, Copaco has drafted goals for President Nicanor Duarte's
five-year term, which began on August 15. The main goals are to
double the number of lines installed and launch Internet and
mobile divisions, local daily ABC quoted Copaco chairman Juan
Francisco Godoy as saying.

Funding for the estimated US$250 million - US$350 million plan is
still up in the air. The government is studying company bylaws to
decide on a final figure and whether to sell a stake in Copaco or
apply for loans, he said.



=================================
T R I N I D A D   &   T O B A G O
=================================

CARIBBEAN ISPAT: Workers Stage Strike Over Pension Plans
--------------------------------------------------------
Workers of Caribbean Ispat staged a protest demanding an
improvement in their pension plans, reports the Trinidad Express.
Located in Trinidad and Tobago, Caribbean Ispat is a unit of
Ispat International N.V., which has just survived a strike in its
Mexican unit.

The report adds that members of the Steel Workers Union of
Trinidad and Tobago (SWUTT) said that the Company failed to honor
the terms of a collective agreement between the union and the
management. However, the report did not mention what these terms
were.

Ispat International produces flat (sheet, slab) and long (wire
rod, bars, pipes) steel products using direct-reduced iron. In
addition to Caribbean Ispat, the Company operates other
subsidiaries, including Ispat Mexicana, Ispat Inland (U.S.),
Ispat Sibdec (Canada), Ispat Germany, and Ispat Unim‚tal
(France).

CONTACT:  Ispat International N.V.
          Hofplein 20, 15th Fl.
          3032 Rotterdam,
          The Netherlands
          Phone: +31-10-282-9465
          Fax: +31-10-282-9468
          Home Page: http://www.ispat.com
          Contact:
          Lakshmi N. Mittal, Chairman and CEO
          Malay Mukherjee, President, COO
          Bhikam C. Agarwal, CFO


CARLISLE TIRE: Minister Tours Facility
--------------------------------------
Trinidad Labour Minister Lawrence Achong was dismayed by what he
saw during his four-hour tour at the Carlisle Tire and Rubber
plant in Point Fortin on Tuesday, five days after workers shut
down the said facility.

"I am concerned about what I saw in terms of health and safety
conditions and there is a need for immediate improvement," Achong
was quoted by the Trinidad Guardian as saying.

On Friday, workers complained they had been working under
inhumane conditions.

According to one employee, Nishan Ramchandra, workers were
promised an increase in wages after their three-month probation
but employers allegedly reneged on this agreement.

Following a meeting with Carlisle's general manager Tom Douglas,
plant manager Errol Ramnath and technical production manager
Ashmead Piralli, Achong said immediate measures were being taken
to improve heath and safety at the plant.

He said, however, that a 100% increase demanded by workers will
not be met until managers meet with the head office based in
Pennsylvania.



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

UTE: Losing $36M Annually To Theft, Fraud
-----------------------------------------
Uruguay's state power company UTE registers an annual loss of
US$36 million to electricity theft and fraud, out of total annual
revenues of approximately US$400 million, according to estimates
by local newspaper El Pais.

These losses account for the fact that although prices rose 40%
in the 12 months to June 30, 2003 UTE's revenues have risen by
only 30%.

Across the country, total losses are 18% of total electricity
distributed, of which half is attributed to technical losses and
half to theft. Every percentage point of power loss is worth some
US$4 million in lost revenues, says the report.

In capital city Montevideo, 21% of electricity consumption is not
billed, of which nine percentage points are attributed to
technical losses and the remaining 12 precentage points to theft
and fraud.

The report reveals that UTE has lost some 14,000 customers in the
12 months between July 2002 and June 2003, many of whom end up as
illegal consumers.

"Today, no-one lives without electric power, so whoever
disconnects usually has an illegal connection," the newspaper
quoted one UTE source as saying.



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

PDVSA: Minister Expects Final Signing of JV Deal By End-Nov.
------------------------------------------------------------
Luis Vierma, director of state-owned oil firm Petroleos de
Venezuela SA (PDVSA), expressed confidence that PdVSA will be
able to sign a final joint venture deal with Royal Dutch/Shell
Group and Mitsubishi Corp. to develop the US$2.7 billion Mariscal
Sucre liquefied natural gas project by the end of November.

"I believe by the end of November we will be signing a joint
venture agreement," Vierma, who is also Venezuela's deputy oil
minister, said.

The project, according to Dow Jones, would give PdVSA 60%
ownership, Shell 30%, Mitsubishi 8% and other Venezuelan
organizations 2%.

PdVSA signed an early agreement last year on the Mariscal Sucre
project, which is projected to produce 4.7 million tons of
liquefied natural gas, mostly for export to the U.S.

However, the project, previously known as Cristobal Colon, has
been shelved several times since it was announced over ten years
ago.


SINCOR: Achieves 200,000b/d Production
--------------------------------------
Venezuela's largest heavy-oil joint venture Sincor SA has
achieved production of 200,000 barrels a day, Bloomberg reports,
citing Total SA, which owns 47% of the project.

Paris-based Total, which gave its assessment of the project in a
presentation on its Web site, believes Sincor has the potential
for higher output.

Sincor, a US$4.6-billion oil development, pumps extra-heavy crude
from Venezuela's Orinoco belt and transports it by pipeline to
the Caribbean coast, where it is refined into lighter, more
valuable synthetic crude.

Other owners of Sincor are Petroleos de Venezuela (38%) and
Norway's Statoil ASA (15%).




               ***********


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
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are $25 each.  For subscription information,
contact Christopher Beard at 240/629-3300.


* * * End of Transmission * * *