/raid1/www/Hosts/bankrupt/TCRLA_Public/040102.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, January 2, 2004, Vol. 5, Issue 1

                          Headlines

A R G E N T I N A

ADDAR: Receiver Verifies Claims in Bankruptcy
AHOLD: Closes $1.82B Credit Facility With A Syndicate of Banks
ALCORTA PEN: Enters Bankruptcy on Court Orders
ANEDRA: Files "Concurso Preventivo" Motion at Court
BANCO FRANCES: Shares Up Amid Buyout Rumors

BELOWAY INTERNATIONAL: Seeks Court's OK on Reorganization Plans
EDITORIAL LUMI: Court Sets Date for Informative Assembly
EFFASER: Receiver Authenticates Claims in Bankruptcy
EL CID CAMPEADOR: Enters Bankruptcy on Court Orders
ENASIC: Files "Concurso Preventivo" Motion at Court

FABRICANTES UNIDOS: Court Declares Company Bankrupt
FINAVEGA: Court Considers Reorganization Petition
IMPSAT: Issues $16.1M in Bonds
LA MANTOVANA: Files Reorganization Petition
LETIBI: Court Studies "Concurso Preventivo" Motion

MANDATARIA DE SALUD: Court Assigns Receiver to Oversee Bankruptcy
SERVINTRA: Court Assigns Receiver to Oversee Reorganization
TZB: Enters Bankruptcy on Court Orders


B E R M U D A

GLOBAL CROSSING: Execs Working To Settle NY ERISA Fraud Lawsuit
SEA CONTAINERS: GNER to Bid for Integrated Kent Franchise


B R A Z I L

AES CORP.: Completes Brazil Restructurings
TCP: Suspends Shareholders' Meeting Scheduled For January 7


E C U A D O R

PETROECUADOR: Expects to End 2003 With $3.243B in Revenue


M E X I C O

CFE: To Buy Power-Plant Turbines With Ex-Im Financing
GRUPO TMM: Closes An Additional $25M in Certificates


P A R A G U A Y

ESSAP: Faces $6M Deficit Next Year


V E N E Z U E L A

PDVSA: Projected US$10B in Investments Needed To Fully Recover

     -  -  -  -  -  -  -  -

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

ADDAR: Receiver Verifies Claims in Bankruptcy
---------------------------------------------
Argentine accountant Manuel Alberto Cibeira will close the credit
verification process for the bankruptcy of Buenos Aires-based
Addar S.A. on April 14 next year. This part of the bankruptcy
process is done to determine the nature and amount of the
Company's debts.

Local news source Infobae indicates that Buenos Aires Court No. 7
handles the Company's case. Clerk No. 13 assists the court on the
case. The source, however, did not mention whether the court has
set the deadlines for filing of the receiver's reports.

CONTACT:  Manuel Alberto Cibeira
          Ave Cordoba 1247
          Buenos Aires


AHOLD: Closes $1.82B Credit Facility With A Syndicate of Banks
--------------------------------------------------------------
Dutch food retailer Ahold, which is currently in exclusive
negotiations with Casino of France and Argentine businessman
Francisco de Narvaez regarding the sale of its Argentine unit
Disco, closed a EUR300 million (US$373 million) and US$1.45
billion back-up credit facility with a syndicate of banks.

According to Reuters, all outstanding letters of credit have been
rolled into the new facility while the remaining cash portion of
the new facility is fully available to the Company.

Earlier this month, Ahold completed a EUR3.0-billion rights issue
and signed for the US$1.8 billion in new bank credit as it seeks
to restore its tattered finances.

The fund raising is crucial to recently appointed chief executive
Anders Moberg's three-year financial and strategic recovery plan
which was unveiled on Nov. 7, Reuters suggests.


ALCORTA PEN: Enters Bankruptcy on Court Orders
----------------------------------------------
Buenos Aires Court No. 26 ordered the bankruptcy of local company
Alcorta Pen S.R.L., relates Argentine news portal Infobae. The
Company is now in the hands of its receiver, Mr. Juan Guaita, who
will oversee the bankruptcy process.

Working with Clerk No. 51, the court ordered the receiver to
authenticate claims until March 1, 2004. The individual reports
are to be filed on April 15, followed by the general report on
June 11.

The Company's assets are to be liquidated at the end of the
bankruptcy process. Payments will be based on the results of the
verification process.

CONTACT:  Alcorta Pen S.R.L.
          Vidt 1755
          Buenos Aires

          Juan Guaita
          Ave de Mayo 749
          Buenos Aires


ANEDRA: Files "Concurso Preventivo" Motion at Court
---------------------------------------------------
Anedra S.A., which is based in Buenos Aires, seeks court
permission to undergo reorganization. Argentine news portal
Infobae indicates that the Company has submitted its motion for
"Concurso Preventivo" at the city's Court No. 6. Clerk No. 12
aids the court on the case.

CONTACT:  Anedra S.A.
          Mario Bravo 1151
          Buenos Aires


BANCO FRANCES: Shares Up Amid Buyout Rumors
-------------------------------------------
The shares of Argentina's BBVA Banco Frances SA are up 41.6% in
the last month on market speculations that its parent company,
Banco Bilbao Vizcaya Argentaria SA (BBV), was preparing to
complete a buyout of the 40% of shares it doesn't already hold,
relates Dow Jones.

In addition to widespread talk that BBVA was preparing to carry
through the buyout it originally planned in early 2001, it was
also rumored another regional bank might be interested in taking
a stake in the company.

Banco Frances refuses to comment on either speculation. In a
filing to the local stock exchange Monday, the bank has "no
knowledge" regarding why its share price has soared so
spectacularly.

The bank is considered one of the better placed of Argentina's
big banks following last year's massive financial crisis. Thanks
to improving operating results, the bank lost ARS35 million
($1=ARS2.945) in the third quarter, down from the ARS618 million
a year earlier.

Banco Frances is Argentina's third largest private bank in terms
of assets and the largest in terms of deposits.

CONTACT:  BBVA Banco Frances SA
          199 Reconquista
          Buenos Aires
          Argentina 1003
          Phone: +54 11 4346 4000
          Home Page: http://www.frances.com.ar
          Contacts:
          Jaime Guardiola Romajaro, Chairman


BELOWAY INTERNATIONAL: Seek Court's OK on Reorganization Plans
--------------------------------------------------------------
Argentine company Beloway International S.A. seeks court
permission to undergo reorganization. The Company submitted its
motion for "Concurso Preventivo" at Buenos Aires Court No. 14,
buckling under debts it hasn't repaid since November 2001.

Judge Gutierrez Cabello handles the Company's case with
assistance from Clerk No. 14, Dr. Giadinieri, reports Argentine
newspaper La Nacion.

          
EDITORIAL LUMI: Court Sets Date for Informative Assembly
--------------------------------------------------------
Buenos Aires Court No. 19 ordered that the informative assembly
for the reorganization of local company Editorial Lumi S.R.L. be
held on November 25 next year. The meeting is one of the last
parts of a reorganization process.

A report by local news source Infobae indicates that the
Company's receiver, Mr. Jaime Feigielson, will examine and
authenticate creditors' claims until March 16, 2004. This is done
to determine the nature and amount of the Company's debts. The
receiver will also prepare the individual and general reports on
the case.

CONTACT:  Jaime Feigielson
          Sarmiento 1287
          Buenos Aires


EFFASER: Receiver Authenticates Claims in Bankruptcy
----------------------------------------------------
Argentine accountant Luis Benedossi verifies claims for the
bankruptcy of local company Effaser S.A., reports Infobae.
Creditors must have their claims authenticated by the receiver in
order to qualify for payments to be made after the Company's
assets are liquidated.

Buenos Aires Court No. 6 handles the Company's case with
assistance from Clerk No. 11. The court requires the receiver to
submit the individual reports on April 28 next year. The general
report, which is prepared after the individual reports are
processed at court, must be submitted on June 11.

CONTACT:  Luis Benedossi
          Maipu 812
          Buenos Aires


EL CID CAMPEADOR: Enters Bankruptcy on Court Orders
---------------------------------------------------
Argentina's El Cid Campeador S.R.L. enters bankruptcy on orders
from Buenos Aires Court No. 10. Argentine news portal Infobae
indicates that the court declared the Company "quiebra".

Working with Clerk No. 20, the court assigned Mr. Luis Horacio
Stamati as the Company's receiver who will verify claims until
June 16 next year. After verifications are closed, the receiver
will prepare the individual reports, which are due on August 8.
The general report, a consolidation of the individual reports
after being processed at court, must be filed on September 27.

CONTACT:  Luis Horacio Stamati
          Ave Rivadavia 3320
          Buenos Aires


ENASIC: Files "Concurso Preventivo" Motion at Court
---------------------------------------------------
Enasic S.A., which is based in Buenos Aires, seeks court
permission to undergo reorganization. The Company has submitted
its motion for "Concurso Preventivo" at the city's Court No. 16,
which is under Judge Kolliker Frers. Clerk No. 32, Dr. Yacante,
assists the court on the case, relates La Nacion.

CONTACT:  Enasic S.A.
          Finochietto 858
          Buenos Aires


FABRICANTES UNIDOS: Court Declares Company Bankrupt
---------------------------------------------------
Buenos Aires Court No. 7 declared local company Fabricantes
Unidos S.A. "Quiebra", reports Argentine news source Infobae. The
Company will undergo the bankruptcy process that will close with
the liquidation of its assets to repay its creditors. Clerk No.
14 assists the court with the case, the source adds without
indicating whether the court has chosen a receiver.

CONTACT:  Fabricantes Unidos S.A.
          Cucha Cucha 35
          Buenos Aires


FINAVEGA: Court Considers Reorganization Petition
-------------------------------------------------
Buenos Aires Court No. 18 is considering a motion for
reorganization filed by local company Finavega S.A., reports
Argentine newspaper La Nacion. Clerk No. 36, Dr. Vivono assists
the court on the case.

The Company submitted its motion for "Concurso Preventivo" after
it stopped paying its debts since July this year. The report,
however, did not mention whether the petition is likely to gain
the court's approval.

CONTACT:  Finavega
          Lopez de Vega 2922
          Buenos Aires


IMPSAT: Issues $16.1M in Bonds
------------------------------
Impsat Fiber Networks, Inc. ("Impsat" or the "Company"), a
leading provider of integrated broadband data, Internet and voice
telecommunications services in Latin America, announced the
issuance of a Ps45 billion (US$16.1 million) bond.

Overview

The Company is pleased to announce the issuance by Impsat S.A.,
the Company's operating subsidiary in Colombia (Impsat Colombia),
of a Ps45 billion (US$16.1 million) bond. The bond, which was
issued at par on December 18, 2003, has a seven-year term. The
coupon of the bond will bear CPI + 8% per annum, and interest
will be payable quarterly in arrears. Principal will be payable
in two installments of 50% each, the first at the end of the
fifth anniversary of issuance and the second at the final
maturity date. Duff & Phelps de Colombia granted this issue a AA+
credit rating.

The proceeds of the offering have been used to partially prepay a
syndicated loan made to Impsat Colombia by a group of Colombian
banks. The prepayment of such loan releases Impsat Colombia from
certain financial restrictions and subjects it to more favorable
financial covenants.

"This is an exceptional way to close this year," CEO Ricardo
Verdaguer said. "This is our first attempt to raise money in the
capital markets since our financial restructuring and the results
were outstanding. To have successfully completed a seven-year
term bond offering less than nine months after our emergence from
Chapter 11 demonstrates the market's confidence in the Company's
operational prospects. Further, this kind of achievement
reinforces the efforts we have made towards strengthening the
Company's capital structure."

The bond, which was oversubscribed, is listed on the Bolsa de
Valores de Colombia (the Colombian stock exchange) and was
offered and sold in Colombia to qualified investors in accordance
with Regulation S under the U.S. Securities Act of 1933 (the
"Securities Act"). The bond is not and will not be registered
under the Securities Act or the securities laws of any state in
the United States, and may not be offered or sold in the United
States absent registration or an applicable exemption from
registration requirements under the Securities Act and any
applicable state securities laws. This announcement does not
constitute an offer to sell or the solicitation of an offer to
buy any security and shall not constitute an offer, solicitation
or sale in any jurisdiction in which such offering would be
unlawful.

Impsat Fiber Networks, Inc. is a leading provider of fully
integrated broadband data, Internet and voice telecommunications
services in Latin America. Impsat operates an extensive pan-Latin
American high capacity broadband network in Brazil, Argentina,
Chile and Colombia using advanced technologies, including IP/ATM
switching, DWDM, and non-zero dispersion fiber optics. The
Company has also deployed thirteen facilities to provide hosting
services Impsat currently provides services to more than 2,700
national and multinational companies, government entities and
wholesale services to carriers, ISPs and other service providers
throughout the region. The Company has local operations in
Argentina, Colombia, Venezuela, Ecuador, Brazil, the United
States, Chile and Peru. Visit us at www.impsat.com.

CONTACT:  Impsat Fiber Networks, Inc.
          Hector Alonso, Chief Financial Officer
              or
          Facundo Castro, Investor Relations
          Phone: 54-11-5170 -3700
          Home page: www.Impsat.com

          Citigate Financial Intelligence
          John McInerney / Robin Weinberg
          Phone: 212-840-0008


LA MANTOVANA: Files Reorganization Petition
-------------------------------------------
La Mantovana de Servicios S.A. filed a motion for "Concurso
Preventivo" at Buenos Aires Court No. 1, which is under Judge
Dieuzeide. Local newspaper La Nacion indicates that the Clerk No.
2, Dr. Pasina, assists the court on the case.

The Company filed the petition under pressure from its financial
obligations. La Nacion relates that the Company stopped making
debt payments October.

CONTACT:  La Mantova de Servicios S.A.
          Constitucion 4268
          Buenos Aires


LETIBI: Court Studies "Concurso Preventivo" Motion
--------------------------------------------------
Judge Chomer of Buenos Aires Court No. 10 is studying a "Concurso
Preventivo" motion filed by Argentine company Letibi S.A.,
according to local newspaper La Nacion. Dr. Gigglberger, the
city's Clerk No. 20 assists the court on the case.

The Company, which sells toiletries, ceased making debt payments
in November 2000.


MANDATARIA DE SALUD: Court Assigns Receiver to Oversee Bankruptcy
-----------------------------------------------------------------
Court No. 2 of Buenos Aires assigned Mr. Mauricio Mudric as
receiver for the bankruptcy of local company Mandataria de Salud
S.A., reports Infobae. The receiver will authenticate creditors'
claims until March 5 next year. This is done to determine the
nature and amount of the Company's debts.

The receiver is also required to prepare the individual and
general reports. However, the source did not mention whether the
court, which works with Clerk No. 3, has set the filing deadlines
for these reports.

CONTACT:  Mauricio Mudric
          Tucuman 893
          Buenos Aires


SERVINTRA: Court Assigns Receiver to Oversee Reorganization
-----------------------------------------------------------
Buenos Aires Court No. 10 assigned local accountant Luis Horacio
Stamati as receiver for Servintsa S.R.L., reports Argentine news
source Infobae. Clerk No. 19 assists the court on the case.

Creditors are required to file their claims before March 11 next
year. The individual reports, which are prepared after
verifications are closed, must be submitted to the court on April
27 next year. The Court requires the receiver to file the general
report on June 9.

The informative assembly, which signals the end of the
reorganization process, will be held on December 1 next year.

CONTACT:  Luis Horacio Stamati
          Ave Rivadavia 3230
          Buenos Aires


TZB: Enters Bankruptcy on Court Orders
--------------------------------------
Argentine company TZB S.A. entered bankruptcy on orders from
Buenos Aires Court No. 16. Clerk No. 32 works with the court on
the case, which will end with the liquidation of the Company's
assets to repay creditors.

Local news source Infobae reports that the deadline for the
filing of creditors' claims is February 24 next year. The
individual reports, which contain the results of the verification
process, are due at the court on April 7.

The receiver, Mr. Oscar Alberto Vertzman, will also prepare a
general report after the individual reports are processed at
court. This report is to be submitted to the court on May 21 next
year. The Company's assets will then be liquidated to repay
creditors.

CONTACT:  Tzb S.A.
          Gallo 1192
          Buenos Aires

          Oscar Alberto Vertzman
          Bartolome Mitre 3120
          Buenos Aires



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

GLOBAL CROSSING: Execs Working To Settle NY ERISA Fraud Lawsuit
---------------------------------------------------------------
Global Crossing, Ltd.'s current and former officers, directors
and employees are negotiating a settlement for the consolidated
class action filed against them in the United States District
Court for the Southern District of New York, styled "In re Global
Crossing Ltd. ERISA Litigation."

The suit was filed pursuant to the Employee Retirement Income
Security Act of 1974 (ERISA) in connection with the
administration of the Company's 401(k) retirement savings plans.
The plaintiffs allege, among other things, that the ERISA
fiduciaries breached their duties to the 401(k) plan participants
by directing or otherwise being responsible for the plans'
acquiring and continuing to maintain investments in the Company's
common stock.

The consolidated complaint seeks, among other things, a
declaration that the defendants breached their fiduciary duties
to the plaintiff class, an order compelling defendants to make
good on the losses sustained by the plans, the imposition of a
constructive trust on any amounts by which the defendants were
unjustly enriched by their actions, and an order of equitable
restitution.

Although the Company had been named as a defendant in the
consolidated ERISA case, plaintiffs asserted in their
consolidated complaint that they would not prosecute their action
against the Company unless or until the Bankruptcy Court lifted
or granted relief from the automatic stay of litigation imposed
by the Bankruptcy Code.

The Company denies any liability for the claims asserted in these
matters and understands that the Company's past and present
officers and directors have been negotiating the terms of a
settlement with the plaintiffs in these actions, but that no
agreement has been reached. Any claims that the plaintiffs could
have asserted against the Company in this case were discharged
upon consummation of the Company's Plan of reorganization.

On April 30, 2002, an additional case, "Pusloskie v. Winnick et
al.," was commenced in the United States District Court for the
Southern District of New York against certain current and former
directors, officers and employees of the Company. This case is
brought on behalf of putative classes of former employees of the
Company and asserts claims for breach of fiduciary duties in
connection with the administration of one of the Company's 401(k)
retirement plans. This additional case does not name the Company
as a defendant and was not consolidated with the other ERISA
cases.


SEA CONTAINERS: GNER to Bid for Integrated Kent Franchise
---------------------------------------------------------
Sea Containers Ltd., (NYSE: SCRA and SCRB, www.seacontainers.com)
passenger and freight transportation operator, marine container
lessor and leisure industry investor, announced Monday that its
United Kingdom rail subsidiary, GNER Holdings Ltd., had been
given the green light by Britain's Strategic Rail Authority, to
bid for the new Integrated Kent Rail Franchise which will provide
services between London and southeast England from 2005. Three
other companies have also pre-qualified to bid. Bids will be
submitted in 2004 with a view to the new franchisee taking over
in 2005.

The Integrated Kent Franchise differs from GNER's existing
franchise in that it is primarily a commuter service while GNER's
franchise is primarily long distance. However, GNER believes the
main problems today on the routes of the Integrated Kent
Franchise are poor quality service, stations and punctuality.
GNER has demonstrated it has the ability to provide service and
travel conditions of the highest quality and it intends to apply
this expertise to a transformation of existing conditions on the
Integrated Kent Franchise routes.

The new franchise will serve the inner London terminals of
Victoria, Charing Cross, Blackfriars, Cannon Street, Waterloo
East and London Bridge and connect them with Hastings, Ashford,
Folkestone, Dover and Ramsgate. It is expected the franchise will
include new train services using the high speed Channel Tunnel
Rail Link between Folkestone and St. Pancras station in London.
In revenue terms this new franchise should generate in excess of
GBP375 million ($650 million) per annum. The term of the new
franchise is expected to be at least 7 years.

As a separate matter, GNER and Network Rail have signed an
agreement settling GNER's claims for loss of revenue and other
costs arising out of the Hatfield rail disaster in October 2000.
The agreement provides that GNER will refund GBP4.5 million ($7.9
million) of track access charges over-withheld from Network Rail.
The agreement does not have any adverse earnings impact on GNER.
GNER has also agreed to cap any continuing claims against Network
Rail resulting from Hatfield at the level of normal performance
penalties payable under GNER's track access agreement.



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

AES CORP.: Completes Brazil Restructurings
------------------------------------------
The AES Corporation (NYSE: AES) announced Monday that several of
its Brazilian subsidiaries have reached agreement regarding the
successful restructuring of approximately $2.3 billion of non-
recourse debt associated with those businesses.

Negotiations with Banco Nacional de Desenvolvimento Economico e
Social (BNDES) to restructure approximately $1.2 billion in
outstanding loans owed to BNDES by several of AES's Brazilian
subsidiaries have been completed. The parties signed definitive
documentation in Rio de Janeiro, concluding nearly eighteen
months of negotiations. As a result of the restructuring, AES and
BNDES have created a new company, Brasiliana Energia, which will
hold AES' direct and indirect interests in AES Eletropaulo, AES
Uruguaiana and AES Tiete. AES Sul will be contributed upon the
successful completion of its financial restructuring.

Pursuant to the shareholders' agreement signed between AES and
BNDES, AES controls Brasiliana Energia through its ownership of a
majority of the voting shares of the company. AES will own 50.1%
of the common shares and BNDES will own 49.9% of the common
shares plus non-voting preferred shares that will provide BNDES
with approximately 53% of the total capital of Brasiliana
Energia. AES equity interests in Eletropaulo, Uruguaiana and AES
Tiete together with $90 million contributed by AES and its
Brazilian subsidiaries will be applied to reduce the outstanding
debt owed to BNDES from $1.2 billion to $510 million. The
remaining outstanding balance of $510 million (which remains non-
recourse to AES) will be payable over an 11 year period.

The transaction's closing is subject only to approval from
Agencia Nacional de Energia Eletrica (ANEEL) and the Brazilian
Central Bank, both of which are expected no later than January
2004.

AES also announced Monday that Eletropaulo had reached agreement
with its private creditors to reschedule approximately 2.3
billion reais ($787 million) of outstanding debt over the next
five years. The agreement with Eletropaulo creditors resolves all
outstanding defaults and accelerations with its operating company
lenders. As the result of this transaction, 70% of the reprofiled
debt will be demoninated in Brazilian Reais (compared with 34%
today). Additionally, as a result of the reprofiling transaction,
approximately 75% of Eletropaulo's debt will be denominated in
Brazilian Reais (compared with 58% today). The Eletropaulo
reprofiling transaction closure is subject to definitive
documentation to be entered into no later than February 16, 2004.

Lastly, AES Tiete Holding, Ltd through its subsidiary AES IHB
Cayman, Ltd has reached agreement with $300 million aggregate
principal amount of 11.5% trust certificates due December 2015 to
obtain the required consents for the transaction with BNDES and
to restructure various payment terms of the obligations.

Paul Hanrahan, President and Chief Executive Officer of AES,
stated, " We are extremely pleased that all of the hard work over
these last 18 months has concluded by reaching these significant
milestones. Our agreement with BNDES is particularly important to
us because we now have the stability necessary to move forward
with our businesses in an attractive and promising electricity
market in South America's largest economy. The Brazilian
government has made great strides over the past year to
reconstitute a stable electricity market that once again will be
attractive for new investment."

"With the completion of these transactions, we now have a
sustainable capital structure for our Brazilian businesses.
Throughout these difficult months, BNDES has constructively
engaged with us in a search for mutually acceptable solutions."
said Joseph C. Brandt, Executive Vice President and Chief
Operating Officer of AES. "We are enthusiastic about working
together as partners. We also appreciate the hard work,
expression of confidence and support shown to us by the
commercial banks and bondholders at Eletropaulo and Tiete. "

"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: This news release may contain "forward-
looking statements" regarding The AES Corporation's business.
These statements are not historical facts, but statements that
involve risks and uncertainties. Actual results could differ
materially from those projected in these forward-looking
statements. For a discussion of such risks and uncertainties, see
"Risk Factors" in the Company's Annual Report or Form 10-K for
the most recently ended fiscal year.

AES is a leading global power company comprised of contract
generation, competitive supply, large utilities and growth
distribution businesses.

The company's generating assets include interests in 116
facilities totaling over 45 gigawatts of capacity, in 27
countries. AES's electricity distribution network sells 89,614
gigawatt hours per year to over 11 million end-use customers.

CONTACT:  The AES Corporation
          Kenneth R. Woodcock, 703/522-1315


TCP: Suspends Shareholders' Meeting Scheduled For January 7
-----------------------------------------------------------
Mobile telephone company, Telesp Celular Participacoes (TCP)
canceled a shareholders' meeting set for January 7 to decide on
the incorporation of subsidiary Tele Centro Oeste (TCO), says
Reuters.

The cancellation came after Brazil's securities regulator CVM
issued a ruling disapproving TCP's acquisition of TCO. In the
ruling, the CVM sided with TCO minority shareholders, who claim
TCP paid about 225% more for each ordinary share than it is
offering for preferred shares.

According to local analysts, the rate offered for minority shares
is very low at 1.27 TCP shares for each TCO share.

However, TCP's legal director Norma Parente said the regulator
cannot block the acquisition.

"CVM can give its opinion, but only the justice system can impede
[the transaction]."

The minority shareholders are delaying the third and final step
of the acquisition, which was originally announced early January
2003.

By May, TCP had paid BRL1.4 billion (US$490 million) for a
controlling stake in TCO from the Fixcel group of investors. Last
month, TCP purchased common stock via the market, bringing its
total stake in the company to 90.7%.

TCP is part of the Vivo wireless joint venture owned by Spain's
Telefonica Moviles and Portugal Telecom (PT).

CONTACT: Telesp Celular Participacoes S.A.
         Fernando Abella Garcia
         Av. Roque Petroni Jr.
         1464, Sao Paulo, SP
         Brazil 04707-000
         Telephone: 55-11-5105-1182



=============
E C U A D O R
=============

PETROECUADOR: Expects to End 2003 With $3.243B in Revenue
---------------------------------------------------------
State run Petroecuador expects to close 2003 with revenues of
US$3.243 billion, up 20.7% compared with 2002, says Reuters. The
forecast comes amid a boost in the sales of gasoline, gas and
fuel in the country.

In a news release, Petroecuador revealed that this year's oil
output has already reached 204,000 barrels per day (bpd) and it
hopes to produce 230,000 bpd by December 2004 with the
exploration of 41 new wells.

The Company also said it was aiming to make net profits of
US$1.779 billion in 2003. It did not provide a comparative figure
for 2002.



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

CFE: To Buy Power-Plant Turbines With Ex-Im Financing
-----------------------------------------------------
Comision Federal de Electricidad (CFE), Mexico's state-owned
electricity company, will purchase three gas-fired turbines and
related equipment from Siemens Westinghouse Power Corp. and other
U.S. companies with the assistance of a $140.6 million long-term
loan guarantee from the Export-Import Bank of the United States
(Ex-Im Bank).

Due to growing electricity demand in Mexico, CFE is purchasing
the turbines and equipment to install at its 150MW power plant in
San Lorenzo, Puebla, and its 300MW plant at Tuxpan, Veracruz,
with a 12-year loan from Standard Chartered Bank of New York,
N.Y.

"Mexico is Ex-Im Bank's number one market and the second-largest
U.S. trading partner, and this transaction benefits U.S.
companies and workers, as well as Mexico's people," Ex-Im Bank
Chairman Philip Merrill said.  "Ex-Im Bank is pleased to finance
U.S. exports to help Mexico meet residential and commercial
demands for electricity."

CFE, which was established in 1937, is Mexico's second-largest
company and the largest utility in North America. It operates 500
generating units at 150 power plants throughout Mexico that
generate 99 percent of the country's electricity.

Siemens, of Orlando, Fla., and Charlotte, N.C., will export the
three turbines and three generator sets. The other U.S. exporters
and suppliers, which are providing electrical, ignition and fuel-
supply systems and parts, are Metal Systems Inc., of Chattanooga,
Tenn.; Koenig Engineering Inc., of Eaton, Penn.; SMCI Inc., and
Machining Services of Lakeland, Fla.; Forney Corporation of
Carrollton, Tex; Daniel Measurement Control of Houston, Tex.; and
GEA Power Cooling Systems of Wichita Falls, Tex.   

Next year, Ex-Im Bank marks its 70th year of helping finance the
sale of U.S. exports, primarily to emerging markets throughout
the world, by providing loan guarantees, export credit insurance,
and direct loans. In fiscal year 2003, Ex-Im Bank, an independent
federal agency, authorized financing to support approximately
$14.3 billion of U.S. exports worldwide.

CONTACT:  Phil Cogan, (202) 565-3200
          www.exim.gov


GRUPO TMM: Closes An Additional $25M in Certificates
----------------------------------------------------
Grupo TMM, S.A. (NYSE: TMM and BMV: TMM A) has closed an
additional $25 million in certificates under its receivables
securitization program, which now totals $76.3 million. The
additional certificates have the same terms and conditions as the
existing certificates originally issued on August 19, 2003, and
also require monthly amortization of principal and interest and
mature in three years.

Funding for the additional securitization certificates was
arranged by the U.S.-based Maple Commercial Finance Group, a
division of Toronto-based Maple Financial Group Inc., and funding
was provided by affiliate Maple Bank GmbH, a German commercial
bank. Mexico City-based Axis Advisors LP acted as structuring
agent and co-arranger, and provided financial advisory services
to the company.

The foregoing is announced as a matter of record only, and does
not constitute an offer to sell securities or the solicitation of
an offer to buy securities.

Headquartered in Mexico City, Grupo TMM is a Latin American
multimodal transportation company. Through its branch offices and
network of subsidiary companies, Grupo TMM provides a dynamic
combination of ocean and land transportation services. Grupo TMM
also has a significant interest in TFM, which operates Mexico's
Northeast railway and carries over 40 percent of the country's
rail cargo.

CONTACT:  Grupo TMM
          Brad Skinner (Investor Relations)
          Phone: 011-525-55-629-8725
                 203-247-2420
          Email: brad.skinner@tmm.com.mx

          Proa/StructurA
          Marco Provencio (Media Relations)
          Phone: 011-525-55-629-8708
                 011-525-55-442-4948
          Email: mp@proa.structura.com.mx



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

ESSAP: Faces $6M Deficit Next Year
----------------------------------
Paraguay's state water utility Essap expects to take in some
US$24 million next year, reports Business News Americas.

Around US$13 million of the figure would be spent on operations,
while the remaining US$11 million will service foreign debts.
However, the Company is facing US$17 million in foreign debt
service for 2004, meaning the Company is facing a deficit of some
US$6 million, utility President Manuel Lopez Cano said.

Already, the finance ministry has had to cover several of Essap's
foreign debt service payments this year. The utility's total
foreign debt reaches close to US$200 million.

It is urgent to define what model - mixed or state - Essap will
take to determine who will assume the debt, Lopez added.



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

PDVSA: Projected US$10B in Investments Needed To Fully Recover
--------------------------------------------------------------
Jose Toro Hardy, an oil expert, revealed that Venezuela's state
oil company PDVSA needs US$10 billion in investments if it is to
recover fully, relates Business News Americas.

In order to drum up such large sums, Toro indicated a downsizing
of the Company's workforce and opening up of the sector to
private companies that can raise the country's oil production.
Such private investment could lead to the creation of pension and
retirement funds to the advantage of the company's workforce, he
said.

Venezuela's economic development has been seriously hampered by
the shrinking of the country's economy, Toro said.



               ***********


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
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