/raid1/www/Hosts/bankrupt/TCRLA_Public/031230.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

          Tuesday, December 30, 2003, Vol. 4, Issue 256

                          Headlines

A R G E N T I N A

ACINDAR: Submits APE to Court for Approval
AGEA: Debt Offer Receives 100% Backing From Creditors
AMEXA: Credit Check in Bankruptcy Ends Today
ARCOR: Agrees To Refinance Debt to Six Creditor Banks
ASISA: Moody's Rates $5M of Bonds `D'

BANCO HIPOTECARIO: Sets Dec. 29 as Final Deadline for Debt Offer
CABLEVISION: Extends Debt Offer For Eighth Time
CEMENTOS MINETTI: Cancels $50M of Debt To Financial Creditors
CONTREX: Enters Bankruptcy on Court Orders
CRISOMAR: Proofs of Claims Due Today

CRM: $350M of Bonds Get `D' Rating from Argentine Moody's
CTI HOLDINGS: Moody's Issues Default Ratings To Bonds
EMPRENDIMIENTOS INMOB.: Moody's Rates Bonds `D'
EUROMAYOR: $10M of Bonds Get Junk Rating from Local Moody's
FABRICANTES UNIDOS: Receiver Validates Claims in Bankruptcy

GSI: Court Approves Creditor's Bankruptcy Petition
GUIRALDES ZAEFFERER: Reaches Debt Accord With Creditors
HIDROELECTRICA DEL CHOCON: Moody's Rates Bonds `C'
IMAGEN SATELITAL: $80M of Bonds Rated `D' by Local Moody's
INTEGRAL MERGER: Claims Due for Filing Today

NEW LEPANTO: Receiver Closes Credit Verifications
NUTRIMETAL: Credit Check in Bankruptcy Ends April 14
PETROBRAS ENERGIA: Issues November Oil & Gas Production Report
SANCOR: May Exit Brazil
TOP STAFF: Court OK's Creditor's Bankruptcy Petition

* IDB, Argentina Ratify $400M Emergency Loan


B E R M U D A

MANHATTAN INVESTMENT: Issues Scheme Creditors' Meeting Notice


B R A Z I L

AES CORP.: Finally Closes Debt Deal With BNDES
CFLCL: Issues Relevant Information
PARMALAT: Still In Negotiations To Delay Brazilian Acquisition
PARMALAT: Files for Bankruptcy


C H I L E

EDELNOR: Has Until Dec. 31 to Present Guarantees for GTA


M E X I C O

CYDSA: Still Struggling to Meet Financial Obligations
HYLSA: Concludes Bond Swap


V E N E Z U E L A

PDVSA: Mulls Sale of Stake in Germany's Ruhr

     -  -  -  -  -  -  -  -

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

ACINDAR: Submits APE to Court for Approval
------------------------------------------
In a filing to the Buenos Aires stock exchange, Argentine
steelmaker Acindar Industria Argentina de Acero SA informed it
has submitted the out-of-court agreement (APE) subscribed with
the majority of its creditors on December 12 for court approval.

The Troubled Company Reporter - Latin America previously reported
that Acindar received approval from two thirds of creditors for
its offer to restructure some US$230 million in debt.

According to TCR-LA, the proposed debt restructuring contemplates
the repayment of the debt within 9 years. Acindar will maintain
the original amount of the indebtedness and will pay a 4%
interest rate in 2004, Libor + 2% in 2005, Libor + 2.5% in 2006
and Libor + 3% from 2007 to 2012.

The Company said that under the terms of the agreement it will
make an advanced payment if its cash position permits it to do
so. Creditors will have the chance to choose between four
alternatives for the settlement of their credits:

- Dollar-denominated notes ruled by foreign legislation;

- Participation in a restructured syndicated loan contract
  denominated in US dollars, also ruled by foreign laws;

- Restructured non-syndicated loan contract, denominated in
  Argentine pesos and governed by Argentine legislation;

- Restructured non-syndicated loan contract, denominated in US
  dollars and governed by foreign laws.


AGEA: Debt Offer Receives 100% Backing From Creditors
-----------------------------------------------------
Arte Grafico Editorial Argentino SA (AGEA) - the Company that
edits leading Argentine daily Clarin - and its subsidiary Artes
Graficas Rioplatenses (AGR) have received 100% backing from its
creditors for a debt restructuring deal.

As a result, the group will not have endure seeking formal
approval for an extrajudicial debt accord with its creditors as
planned and can immediately move to restructure its obligations.

The group's US$408 million debts are made up of a US$250-million
bond issue and bank debts.

In its offer, AGEA made three options available.

One is a par bond, whose maturity would be extended for 10 years.
Those who opted for this before December 11 will get an
additional 2% on the nominal value of the bond.

Option two is a debt repurchase. The group demanded a 68% nominal
haircut on those who signed up for this by December 11 and a 72%
haircut on those who did so thereafter.

The third option would be to give creditors US$520 in new seven-
year bonds for every US$1,000 offered for restructuring. In
addition, creditors will get US$120 in cash. If the creditor
agreed to participate after December 11, they will receive US$480
in bonds and US$80 in cash.

Among the Company's creditors are the local unit of Fleet Boston
Financial Corp. SA, the Argentine unit of Citigroup Inc., BBVA
Banco Frances SA, local bank Banco de Galicia y Buenos Aires SA
and the Export-Import Bank of the United States of America.

AGEA is part of media conglomerate Grupo Clarin, which also
controls cable channel Multicanal SA and a range of other
Argentine outlets. The group fell on troubled times as a
consequence of a bitter four-year recession, that culminated last
year in a 10.9% contraction of the economy and a 70% depreciation
of the peso, which sent spiraling the costs of servicing dollar
debts in local currency.


AMEXA: Credit Check in Bankruptcy Ends Today
--------------------------------------------
The credit verification process for the bankruptcy of Buenos
Aires-based Amexa S.A. will end today, December 30, 2003. The
Company's receiver, Mr. Salomon S. Wilhelm, who verified the
claims, will now prepare the individual reports on the case, to
be submitted to the court on March 11, 2004.

An earlier report from the Troubled Company Reporter - Latin
America indicates that the city's Court No. 23 issued the
bankruptcy order. Clerk No. 45 works with the court on the case.

The court requires the receiver to hand in the general report on
April 27 next year. This report is to be prepared after the
individual reports are processed at court.

The Company's assets will then be liquidated to reimburse
creditors. Payments will be based on the results of the
verification process.

CONTACT:  Salomon S. Wilhelm
          Lavalle 1290
          Buenos Aires


ARCOR: Agrees To Refinance Debt to Six Creditor Banks
-----------------------------------------------------
Argentina's Arcor has agreed to the refinancing of US$184 million
and ARS34 million in debt to six creditor banks, with repayment
terms and interest rates more favorable to the Company, but
maintaining the amount of the debts.

Arcor informed that the maximum repayment term will be 5 years,
with semi-annual capital redemptions and final expiry date on
December 1, 2008.

The creditor banks are Citibank, BankBoston, Rabobank, Banco
Latinoamericano de Exportaciones (Bladex), Santander-Rio and
BBVA-Banco Frances.

The financing terms and the conditions obtained will allow Arcor
to optimize its capital structure and its financial cost, the
Company said in a press release.

A company spokesperson highlighted that Arcor is one of the few
Argentine groups that managed to refinance their financial debts
without defaulting on payments first and that honors the original
amount of debt. The spokesperson explained that the agreement
came after a negotiation process that took between seven and
eight months.

In another order, the spokesperson pointed out Arcor will close
2003 with a billing of some US$810 million.

Other sources in the Company also said Arcor will close the year
with US$35 million in profits, figure that involves an important
improvement compared with the US$37 million loss posted last
year.


ASISA: Moody's Rates $5M of Bonds `D'
-------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. assigned
default ratings to US$5 million worth of Atlantis Sociedad
Inversora S.A.'s corporate bonds called "Obligaciones Negociables
de Corto Plazo Serie IV", according to the Comision Nacional de
Valores, Argentina's securities regulator. The affected bonds are
classified under "Series and/or Class", with undisclosed maturity
date.

The rating, issued last Friday, was based on the Company's assets
as of the end of June this year. The ratings agency said that the
`D' rating is assigned to financial obligations that are
currently in default.


BANCO HIPOTECARIO: Sets Dec. 29 as Final Deadline for Debt Offer
----------------------------------------------------------------
Argentina's mortgage bank Banco Hipotecario SA extended its debt
restructuring offer to December 29. This expiration date will be
unmovable, the bank said.

Banco Hipotecario defaulted on US$1.2 billion at the end of 2001.
Argentina's government partially privatized the bank in 1999 and
still has a 44% stake. Local real estate concern IRSA Inversiones
y Representaciones SA and an investment fund owned by financier
George Soros are Banco Hipotecario's other main shareholders.


CABLEVISION: Extends Debt Offer For Eighth Time
-----------------------------------------------
Argentine cable operator Cablevision SA extended its debt
restructuring offer for the eighth time, with creditor approval
up slightly but still below the two-thirds rate needed to move
forward with the Company's restructuring agreement.

Cablevision said in its latest statement to the Buenos Aires
stock exchange that its offer, last set to run out on December
19, is now extended until December 29. The Company has US$797
million in defaulted debt. Cablevision's debt restructuring offer
was originally set to expire on October 10 but has been
repeatedly extended.

As of December 19, creditors representing about US$245.3 million
in eligible bonds had accepted Cablevision's offer. This is more
than the US$234.6 million from December 11, the previous
deadline, but well below the US$270.4 million the Company had
secured by October 20.

The Company needs two-thirds approval in order to submit its out-
of-court debt restructuring agreement, known by its Spanish
acronym APE, to a court for legal approval.

Cablevision is offering to buy back up to US$270 million of the
debts at 37% of their original value. The Company is putting up
US$54.9 million. Its two main shareholders, Hicks, Muse, Tate &
Furst and Liberty Media Corp, will spend another US$45 million.

Sources close to the negotiations have said Cablevision will
continue to extend its original debt offer while conducting
behind-the-scenes talks with a small group of large bondholders
on an improved deal. The company will release a new offer once it
completes those negotiations, sources say.


CEMENTOS MINETTI: Cancels $50M of Debt To Financial Creditors
-------------------------------------------------------------
In a filing to the Buenos Aires stock exchange, Argentine cement
company Cementos Minetti informed it cancelled US$50 million of
its debt to financial creditors that had subscribed debt
restructuring contracts with the Company.


CONTREX: Enters Bankruptcy on Court Orders
------------------------------------------
Argentine plastics manufacturer, Contrex S.A., entered bankruptcy
on orders from Buenos Aires Court No. 6, under Judge Ferrario.
According to Estudio Elenitza Fernandez Lopez, the court assigned
Mr. Luis Traverso as the Company's receiver.

Creditors are required to have their claims authenticated by the
receiver before April 16 next year. Verifications are done to
determine the nature and amount of the Company's debts and to set
a basis for payments distribution after the Company's assets are
liquidated.

The receiver's duties cover the preparation of the individual and
general reports on the case. The source, however, did not mention
whether the court, which works with Clerk No. 11, Dr. Piatti, has
set the filing deadlines for these reports.

CONTACT:  Contrex S.A.
          9th Floor, Office D
          Viamonte 1660
          Buenos Aires

          Luis Traverso
          1st Floor, Office B
          Ave Corrientes 1820
          Buenos Aires


CRISOMAR: Proofs of Claims Due Today
------------------------------------
Creditors of Buenos Aires company Crisomar S.R.L. must have their
claims verified by the Company's receiver, Mr. Pedro Luis
Santamaria, as the deadline for verifications expires today. The
receiver will now prepare the individual reports.

The Troubled Company Reporter - Latin America earlier revealed
that Buenos Aires Court No. 9, which handles the Company's case,
ordered the receiver to submit the individual reports on March 12
next year, followed by the general report on April 28. The
general report is prepared after the individual reports are
processed at court. The informative assembly, one of the last
parts of a reorganization, will be held on November 8 next year,
as the court ordered.

Clerk No. 17 assists the court on the case.

CONTACT:  Crisomar S.R.L.
          Esmeralda 1385
          Buenos Aires

          Pedro Luis Santamaria
          Lavalle 1430
          Buenos Aires


CRM: $350M of Bonds Get `D' Rating from Argentine Moody's
---------------------------------------------------------
A total of US$350 million worth of Compania de
Radiocomunicaciones Moviles S.A.'s corporate bonds received
default ratings from Moody's Latin America Calificadora de Riesgo
S.A. last Friday. The rating was based on the Company's finances
as of September 30, 2003.

A report from the Comision Nacional de Valores, Argentina's
securities regulator, indicates that the bonds, called "Programa
Global de ONs simpleas, autorizado por AGE de fecha 26.6.97 y
23.9.97" were classified under "Program". The bonds matured in
early March this year.

Moody's said that the `D' rating is issued to bonds that are in
default.


CTI HOLDINGS: Moody's Issues Default Ratings To Bonds
-----------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. rated US$262
million of corporate bonds issued by Argentine company CTI
Holdings S.A. `D', according to the Comision Nacional de Valores.
The rating, issued last Friday, was based on the Company's
financial situation as of the end of September this year.

The affected bonds are called "Serie A por U$S 262.848.000 con
cup˘n diferido". The bonds, due on April 15, 2008, are classified
under "Series and/or Class". Moody's said that the `D' rating is
given to financial obligations that are in default.


EMPRENDIMIENTOS INMOB.: Moody's Rates Bonds `D'
-----------------------------------------------
Some US$1.65 million worth of corporate bonds issued by
Emprendimientos Inmob. y Financieros S.A., formerly ECIPSA,
received default ratings from Moody's Latin America Calificadora
de Riesgo S.A., relates Argentina's securities regulator, the
Comision Nacional de Valores.

The affected bonds, described as "Obligaciones Negociables Clase
B", were classified under "Simple Issue". The bonds, maturity
date, however, was not indicated in the report.

The issued rating was based on the Company's finances as of the
end of October 31, 2003.


EUROMAYOR: $10M of Bonds Get Junk Rating from Local Moody's
-----------------------------------------------------------
Some US$10 million worth of Euromayor S.A. de Inversiones'
corporate bonds received junk ratings from Moody's Latin America
Calificadora de Riesgo S.A. last Friday. The issued rating was
based on the Company's financial situation as of October 31 this
year.

Argentina's securities regulator, the Comision Nacional de
Valores relates that the bonds are called "Primera Serie por 10
milliones de US$ dentro de un Programa Global". The bonds, which
matured in April this year, were classified under "Series and/or
Class".

The `C' rating is assigned to financial obligations that have a
risk of nonpayment.


FABRICANTES UNIDOS: Receiver Validates Claims in Bankruptcy
-----------------------------------------------------------
Mr. Manuel Ciberia, receiver for bankrupt Buenos Aires-based
Fabricantes Unidos S.A., will verify creditors' claims until
March 26 next year. Creditors must file their claims before the
said date in order to qualify for payments to be made after the
Company's assets are liquidated.

Judge Gutierrez Cabello of the city's Court No. 7 handles the
Company's case with assistance from Clerk No. 14, Dr.
Giardenieri.

CONTACT:  Fabricantes Unidos S.A.
          PB 3
          Ave Cordoba 1247
          Buenos Aires

          Manuel Cibeira
          5th Floor, Office I
          Ave Cordoba 1247
          Buenos Aires


GSI: Court Approves Creditor's Bankruptcy Petition
--------------------------------------------------
Judge Gutierrez Cabello of Buenos Aires Court No. 7 ordered the
bankruptcy of local company G.S.I. S.A., according to a report by
Estudio Elenitza Fernandez Lopez. The ruling came in approval of
a petition filed by the Company's creditor, CAF S.A. for
nonpayment of debt.

With assistance from the city's Clerk No. 14, Dr. Guardenieri,
the courtassigned local accountant Jose Planas to oversee the
bankruptcy process as receiver. He will examine and validate
creditors' claims until March 30 next year. Creditors must have
their claims verified in order to qualify for payments to be made
after the Company's assets are liquidated.

CONTACT:  G.S.I. S.A.
          Ministro Brin 615
          Buenos Aires

          Jose Planas
          6th Floor, Office C
          Paraguay 631
          Buenos Aires


GUIRALDES ZAEFFERER: Reaches Debt Accord With Creditors
-------------------------------------------------------
After defaulting on its debt in February 2002, Argentine
construction company Guiraldes Zaefferer S.A. reached a debt
restructuring accord through a novel and creative proposal.

Diego Garcia Saenz, an associate in the law firm Llerena &
Asociados, who advised the construction company during the
restructuring, explained the proposal. Sixty percent of the debt
was paid though the issue of a new bond payable in six annual
installments, the first of which is expiring two years after the
formal restructuring process gets formal approval, the lawyer
said.

Garcia Saenz also explained a reduction in the two latest
installments was established in case the Company pays the first
four ones on time.

A clause that establishes the acceleration of the installments
through the liquidation of all the assets that are not vital for
the continuity of the Company was also included in the agreement.

Some of the creditors that accepted the offer are HSBC, Banco
Rio, Banco Piano, Societe Generale, a group of suppliers and
insurance firms.

Guiraldes Zaefferer S.A. is one of the construction companies
that grew the most in the nineties.


HIDROELECTRICA DEL CHOCON: Moody's Rates Bonds `C'
--------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. rated US$140
million worth of corporate bonds issued by Hidroelectrica El
Chocon S.A. `C'. The rating, which means that the bonds have a
risk of nonpayment, was based on the Company's financial
situation as of the end of September this year.

The bonds were described as "Obligaciones Negociables", due on
February 19, 2004. The Comision Nacional de Valores, Argentina's
securities regulator reveals that the bonds are classified under
"Simple Issue".


IMAGEN SATELITAL: $80M of Bonds Rated `D' by Local Moody's
----------------------------------------------------------
A total of US$80 million worth of corporate bonds issued by
Argentine company Imagen Satelital S.A. received default ratings
from Moody's Latin America Calificadora de Riesgo S.A.. The
Company's financial health as of September 30 this year was used
as basis for the rating.

The `D' rating applies to bonds called "obligaciones negociables"
due on May 2, 2005. The bonds are classified under "Simple
Issue", relates the Comision Nacional de Valores, the country's
securities regulator. However, the bonds' CUSIP was not
indicated.


INTEGRAL MERGER: Claims Due for Filing Today
--------------------------------------------
The credit verification process for the bankruptcy of Buenos
Aires' Integral Merger S.R.L. will end today, according to an
earlier report by the Troubled Company Reporter - Latin America.
Creditors must present their claims to the Company's receiver,
Mr. Marcos Livszyc.

Buenos Aires Court issued the bankruptcy order in cooperation
with Clerk No. 33. The court ordered the receiver to file the
individual reports on March 19, 2004 followed by the general
report on May 7.

CONTACT:  Integral Merger S.R.L.
          Ave Rivadavia 3410
          Buenos Aires


NEW LEPANTO: Receiver Closes Credit Verifications
-------------------------------------------------
Mr. Jorge Wilke, receiver for bankrupt Buenos Aires company, New
Lepanto S.A., will close the credit verification process today.
This part of the bankruptcy process determines the nature and
amount of the Company's debts.

As ordered by the court, the receiver will now prepare the
individual reports on the results of the verification process.
These reports are to be submitted to the city's Court No. 20 by
March 12 next year.

After the individual reports are processed at court, the receiver
will consolidate the results into a single general report, to be
submitted to the court on April 27. The court will then order the
liquidation of the Company's assets to pay off creditors.

CONTACT:  Jorge Wilke
          Roosevelt 1877
          Buenos Aires


NUTRIMETAL: Credit Check in Bankruptcy Ends April 14
----------------------------------------------------
The credit verification period for the bankruptcy of Buenos Aires
company, Nutrimetal Co. S.A.I.C. y F., will end April 14, 2004.
The Company's receiver, Mr. Roberto Sapolznik, will authenticate
claims and prepare the individual and general reports.

Estudio Elenitza Fernandez Lopez relates that Judge Guti‚rrez
Cabello of the city's Court No. 7 issued the bankruptcy order.
Clerk No. 13., Dr. O'Reilly, assists the court on the case.

CONTACT:  Nutrimetal Co. S.A.I.C. y F.
          7th Floor
          Ave Corrientes 1312
          Buenos Aires

          Roberto Sapolznik
          10th Floor, Office 41
          Parana 851
          Buenos Aires


PETROBRAS ENERGIA: Issues November Oil & Gas Production Report
--------------------------------------------------------------
Petrobras Energia Participaciones S.A. (Buenos Aires: PBE,
NYSE:PZE), controlling company with a 98.21% stake in Petrobras
Energia S.A. (Buenos Aires: PESA), announces Petrobras Energia
S.A.'s oil and gas average production for November 2003.

Oil & Gas Average Production (*)
(thousands of boe/day)

                                Nov03

- Oil Argentina                 56,6
- Oil Venezuela                 44,1
- Oil Peru                      11,3
- Oil Bolivia                    1,3
- Oil Ecuador                    5,7
Total Oil Production           119,0

- Gas Argentina                 31,8
- Gas Venezuela                  4,4
- Gas Peru                       1,5
- Gas Bolivia                    6,4
Total Gas Production            44,1
Total Oil & Gas Production     163,1

(*) Includes consolidated & nonconsolidated operations


SANCOR: May Exit Brazil
-----------------------
Argentine dairy company SanCor is thinking of withdrawing from
Brazil, as a result of a series of bad business deals that led to
a ARS12-million (US$4 million) deficit in the 2002-2003 balance
sheet.

The closure of the Brazilian unit is not seen as worrying, taking
into account it has become really small. The most important issue
SanCor is facing is a conflict with Argentina's central bank,
BCRA. The bank is questioning SanCor about possible violations to
the penal exchange law, which compels exporters to deposit in
Argentina the foreign currencies obtained through their
operations since January 2002.

The central bank believes SanCor has not deposited dollar bills
from sales to Brazil in country. Sources from SanCor admitted
they have received BCRA inspections, but said there is no evasion
but bad business deals in SanCor Brazil, which caused a ARS12-
million loss in the last balance sheet.

SanCors lawyers have to prove BCRA the origin of the monetary
loss and would give two main reasons. Firstly, the loss of value
accrued by the Brazilian real during the past two years, which
caused losses in SanCor because it received fewer US dollars per
reals.

Secondly, the Company made some bad deals and some of its
Brazilian customers (importers) became insolvent and missed
payments to SanCor.


TOP STAFF: Court OK's Creditor's Bankruptcy Petition
----------------------------------------------------
Buenos Aires Court No. 7, under Judge Gutierrez Cabello, approved
a petition for the bankruptcy of local company Top Staff S.A.,
relates Estudio Elenitza Fernandez Lopez. One of the Company's
creditors filed the petition on the Company's failure to fulfill
its financial obligations.

The deadline for the filing of credit claims is March 25, 2004.
The Company's receiver, Mr. Jorge Stanislavsky, will verify the
claims and prepare the individual and general reports on the
case.

Clerk No. 14, Dr. Giardenieri, assists the court on the case.

CONTACT:  Top Staff S.A.
          PB 4
          Ave Alicia Moreau de Justo 740
          Buenos Aires

          Jorge Stanislavsky
          9th Floor
          Talcahuano 768
          Buenos Aires


* IDB, Argentina Ratify $400M Emergency Loan
--------------------------------------------
Argentine Finance Minister Roberto Lavagna and the President of
the Inter-American Development Bank, Enrique V. Iglesias,
ratified a   fast-disbursing loan of $400 million to help finance
social protection and to reduce the impact of the current
economic crisis on the very poor.

The loan approved by the IDB Board of Executive Directors last
week will support measures to be adopted by the Argentine
government that will ensure macroeconomic stability while
directing the benefits of social services on low-income groups.

The program will prevent a decrease in coverage of health,
education and social development programs while reforms are
underway.

Conditions for disbursement of the first tranche of the loan
include a stabilization agreement with the International Monetary
Fund, protection for priority social programs, support for a
strategy that promotes efficiency and continuity in social
programs and advances in social protection in health, education
and social development.

The loan complements a $1.5 billion emergency loan approved for
Argentina in February of this year for social protection and
reflects the IDB strategy for Argentina of supporting greater
efficiency in social services, poverty reduction and a better
quality of life for the people.



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

MANHATTAN INVESTMENT: Issues Scheme Creditors' Meeting Notice
-------------------------------------------------------------
Notice is hereby given that, by an order dated December 10, 2003
made in the High Court of Justice of the British Virgin Islands
in the matter of Manhattan Investment Fund Ltd. ("the Company"),
a meeting has been ordered to be summoned of Scheme Creditors (as
defined in the scheme of arrangement referred to in this Notice)
of the Company, for the purpose of considering and if thought
fit, agreeing to a scheme of arrangement proposed to be made
between the Company and its Scheme Creditors pursuant to section
186 of the Companies Act Cap 285 ("the Scheme").

The meeting is to be held at 8:00 a.m. (Bermuda time) on January
12, 2004 at:
          KMPG
          Crown House,
          4 Par-la-Ville Road,
          Hamilton HM08
          Bermuda.

The Chairman of the meeting will address Scheme Creditors on the
Scheme and on issues relevant to voting at the commencement of
the meeting.

Scheme Creditors may attend and vote at the meeting either in
person or by proxy. Scheme Creditors, which are corporations, may
attend and vote by a duly authorized representative or proxy.
Scheme Creditors are requested to complete the form of proxy and
return it to the Joint Liquidators (marked for the attention of
Chris Giddens at KMOG, Crown House, 4 Par-la-Ville Road, Hamilton
HM08 Bermuda; or by fax number (441) 295 8250). Each Proxy Form
should be submitted by 5:00 p.m. (Bermuda time) on January 9,
2004, although, if not so returned, it may be handed in between
9:15 a.m. and 9:45 a.m. on the day of the meeting at the place
fixed for the meeting.

Each Scheme Creditor or his proxy will be required to register
his attendance at the meeting prior to its commencement/
Registration will commence at 9:15 a.m..

The Scheme is proposed between the Company and its Scheme
Creditors (being every person, corporation, or body or any party
without limitation which has claimed or which could assert a
valid claim against the Company in respect of alleged loss
arising from or in connection with the purchase of shared in the
Company by such person, corporation, or body or any party without
limitation between October 1, 1995) and January 18, 2000, save
for those parties who have delivered releases to Deloitte and who
are identified un the caption of the lawsuit captioned Argos, et
al. v. Berger, et al., No. 00 Civ. 2498 (DLC) (S.D.N.Y.))

By the order, the High Court of Justice has appointed Anthony
James MacMahon, or failing him, Malcolm Butterfield, to act as
chairman of the meting and directed to the chairman to report the
result of the meeting to the Court.

The Scheme will be subject to the subsequent sanction of the High
Coutr of Justice of the BVI.

CONTACT:  Attride-Stirling & Wolonlecki
          Crawford House
          50 Cedat Avenue
          Hamilton HM11



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

AES CORP.: Finally Closes Debt Deal With BNDES
----------------------------------------------
Brazil's development bank BNDES and U.S. power group AES Corp.
(AES) finally closed a US$1.2-billion debt-rescheduling deal.
Citing a BNDES spokesman, who spoke on condition of anonymity,
Dow Jones reports that BNDES and AES will make a formal
announcement to the market on Monday.

The conclusion of the debt deal comes after nearly a year of
negotiations. In September, BNDES and AES reached a preliminary
agreement in which a new company called Novacom would be created
to hold most AES-owned assets in Brazil. Novacom would be jointly
controlled by the U.S. power group and BNDES.


CFLCL: Issues Relevant Information
----------------------------------
This document refers to the notice published on December 19,
adding further information thereto owing to the events, which
have taken place since said notice was published.

On December 12, 2003, the Justice hearing Appeal 22451/03,
currently being heard at the Rio de Janeiro Court of Appeals,
against the decision handed down by the Judge who heard the case
on December 07, 2003 as lodged by the Company against
shareholders Fondelec Essential Services Growth Fund, L.P.
("Fondelec") and The Latin America Energy And Electricity Fund I,
L.P ("Latin America"), awarded an injunction suspending the
effectiveness of the resolutions approved at the CFLCL
Extraordinary Shareholders' Meeting held on December 09, 2003.

On December 18, 2003 the Justice hearing Appeal 22510/03 lodged
by Alliant Energy Holdings do Brasil Ltda. ("Alliant"), against
the Company and others, which is also being heard at the Rio de
Janeiro Court of Appeals, awarded an injunction, with the same
purpose of suspending the effects of the aforementioned
resolutions approved at the Extraordinary Shareholders' Meeting.
All the decisions have arisen out of appeals lodged by the
parties against preliminary injunctions originally handed down by
the Judge of the 4th Business Court of Rio de Janeiro on the
following cases: Common lawsuit claiming an interim injunctive
relief filed by Alliant - no. 2003.001.142935-0; Common lawsuit
claiming an interim injunctive relief filed Fondelec and Latin
America - no. 2003.001.146051-3.

As stated by the notice published earlier on December 19, 2003,
the previous decision made by the Justice hearing the appeal of
December 12, 2003, was partially amended by Appeal 22451/03,
authorizing the Company to pay the fixed or minimum dividends to
its preferred shareholders based upon the capital of the company
prior to the reduction approved by the resolution made at the
Extraordinary Shareholders' Meeting of December 09, 2003, with
the rest of the appealed decision upheld. This decision was
extended to Appeal 22510/03 on the same date. Following the
aforementioned decisions rendered on December 19, 2003 concerning
the appeals set forth above, the amount corresponding to the
dividends of the preferred shareholders not connected to the
shareholders' agreement recorded at the company head offices, has
been deposited in a court deposit at the Banco do Brasil S.A., as
had been declared earlier.

It has come to the Company's knowledge that the same Judge of the
4th Business Court has once again suspended the resolutions made
at the Extraordinary Shareholders' Meeting of December 09, 2003
by means of interim injunction, case no. 2003.001.143030-2 filed
by Fondelec and Latin America. These resolutions are currently
being addressed by the Court of Appeals.

Furthermore, upon this date the Company has received an Official
Letter from the Justice of the 7th Civil Court of the Court of
Appeals presiding over Appeal 439.627-4, denying an injunction
against the decision rendered by the Judge at the Uba court, in
Minas Gerais state, in the documentation of a second suit also
filed by Alliant. The Justice stated that the injunction was not
appropriate "due to the fact that an equal dispute between the
same parties had been brought before the justice of the Rio de
Janeiro court".

The Company shall continue taking the appropriate measures to get
the resolutions made at by the Shareholders' Meeting upheld.


PARMALAT: Still In Negotiations To Delay Brazilian Acquisition
--------------------------------------------------------------
Parmalat Finanziaria S.p.A. announced Dec. 22 that:

a) negotiations with the objective of delaying the execution of
the acquisition of 18.18% of Parmalat Empreendimentos e
Administra‡ao Ltda are still in progress;

b) PriceWaterhouseCoopers' investigations on the actual
composition of the Group's financial assets and liabilities are
still in progress;

c) the Board of Directors which met on December 19 mandated the
Chairman to inform the judicial authorities of the occurrences,
making clear to the same authorities the Board's commitment to
draw up, as soon as possible, the plan of action most suited to
the current situation, while in the meantime assuring the
continuity of Parmalat's ongoing business.

The Boards of Directors of Parmalat Finanziaria S.p.A. and
Parmalat S.p.A. have been called to meet in the late afternoon of
December 23, 2003;

d) the Board of Directors of the controlled company Eurolat
S.p.A. has been called to meet on December 27, 2003 to discuss
the appointment of Enrico Bondi as Chairman of the company.


PARMALAT: Files for Bankruptcy
------------------------------
Parmalat Finanziaria Spa communicates that its subsidiary
Parmalat Spa, following the resolutions taken at the
Extraordinary Shareholder Meeting of Parmalat SpA held on 23
December, 2003, has filed with the Minister of Productive
Activities and the Court of Parma, for admission to the
extraordinary administration procedure by means of economic and
financial restructuring, as referred to in the Legislative Decree
on urgent measures for the restructuring of major companies
approved yesterday by the Italian Cabinet. The decree is in the
process of being published on the Gazzetta Ufficiale.



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

EDELNOR: Has Until Dec. 31 to Present Guarantees for GTA
--------------------------------------------------------
Chilean power generator Edelnor has until Dec. 31, 2003 to
present guarantees for a gas transport agreement (GTA) with local
gas transport company Gasoducto Norandino.

In a previous report, the Troubled Company Reporter - Latin
America said that the GTA, signed in 1997, required Edelnor to
maintain a credit rating of BB+ or higher with credit rating
agency Standard and Poor's (S&P). Norandino and Edelnor are
controlled by Belgian energy company Tractebel.

CONTACT:  Empresa Electrica Del Norte Grande SA
          Avenida Grecia 750
          Antofagasta, Chile
          Phone: +56 55 248500
                 +56 55 248094
          Contact: Fernando del Sol, Chairman



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

CYDSA: Still Struggling to Meet Financial Obligations
-----------------------------------------------------
Grupo Celulosa y Derivados (Cydsa) missed paying a US$7.5-million
interest on medium-term bonds expiring in 2009, a sign that the
Company is having a hard time finding a way out of its
troublesome financial condition.

In an article released by Notimex, Cydsa revealed it is still in
negotiations with creditors and that it expects to reach an
acceptable solution for all parties before too long.

Last month, Cydsa reached a basic agreement with its bank
creditors, headed by Citibank Banamex and BBVA Bancomer, to
restructure the debt of its subsidiaries, which totals US$192
million.

Cydsa, a maker of yarn and air-conditioner refrigerants, saw its
profits plummet following fierce competition from Asian textiles
and falling demand and prices for chemicals. As a result of the
slump in profits, the Company couldn't keep up with its financial
obligations.

CONTACT:  CYDSA, S.A. DE C.V., IN MEXICO
          Jesus Montemayor, Treasury Director
          +011-528-18-152-4585
          E-mail: jmontemayor@cydsa.com


HYLSA: Concludes Bond Swap
--------------------------
Hylsa, which is currently undergoing a debt restructuring
process, concluded the exchange of its medium-term bonds expiring
in 2007 for paper expiring in 2008, reports El Economista.

Accordingly, 91.18% of the 2,186,430 bonds were swapped for a
total of 223 million investment units (Udis). The new Hylsa stock
certificates will expire Sept. 9, 2008, while the circulating
stocks will expire March 9, 2007.

Hylsa is a subsidiary of the steel company Hylsamex, the main
company of the holding Alfa. Hylsamex reached an agreement to
restructure its debt in light of the world economic deceleration
and the drop in steel prices registered in 2000. Hylsamex's net
debt through September was US$1.05 billion, of which most of its
belonged to Hylsa.




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

PDVSA: Mulls Sale of Stake in Germany's Ruhr
--------------------------------------------
Venezuela's state-owned oil company Petroleos de Venezuela SA
plans to sell its 50% ownership in Germany's Ruhr Oel Gmbh to
Russia's Alfa Group as it seeks to raise funds after a two-month
strike slashed exports and output, reports Bloomberg News.

The Company will set the price of the stake after completion of a
review of all financial documents.

"Ruhr Oel doesn't process Venezuelan oil, and from that point of
view, it's a good deal for Petroleos de Venezuela," said Alberto
Quiros, former president of Royal Dutch/Shell Group of Cos. in
Venezuela, and now an oil consultant. "Petroleos de Venezuela
also needs cash to cover domestic investments."

BP Plc, Europe's biggest oil company, owns the remaining 50%
stake in Ruhr Oel, which has four refineries and two
petrochemical complexes




               ***********


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., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. 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
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Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

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or balance thereof are $25 each.  For subscription information,
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