/raid1/www/Hosts/bankrupt/TCRLA_Public/040105.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                   L A T I N   A M E R I C A

          Monday, January 5, 2004, Vol. 5, Issue 2

                          Headlines

A R G E N T I N A

ALONSO BENITEZ: Files "Concurso Preventivo" Motion at Court
BANCO HIPOTECARIO: Restructures $1.2B of Debt
BANCO HIPOTECARIO: IRSA Increases Participation
CABLEVISION: Postpones Debt Offer Deadline For Ninth Time
CENTRAL DE REFRIGERACION: Court Orders Bankruptcy

CONSTRUCTORA EMBALSE: To Undergo Reorganization
CONSTRUCTORA LATINOAMERICANA: Enters Bankruptcy on Court Orders
CTI MOVIL: Court Approves APE
EXPRESO SANTULLI: Receiver Verifies Claims in Bankruptcy
GARAJE BELGRANO 868: Enters Bankruptcy on Court Orders

JORGE COTO: Court Assigns Receiver to Oversee Bankruptcy
LES AMIES: Credit Check Ends March 25
MABEGO: Enters Bankruptcy on Court Orders
QUIMICA ESTRELLA: Seeks To Close Debt Renegotiation By March 2004
SANCOR: $300M of Bonds Get Default Ratings From Argentine S&P

SICKTEST: Undergoes Bankruptcy Proceedings
TELECOM ARGENTINA: Authorities Approve New Ownership Structure
TELEFE: Reaches $50M Debt Deal With Creditors
TRANSPORTES DIVANO: Court Orders Bankruptcy
VINTAGE PETROLEUM: Fails To Reach Agreement With El Paso

X PERIENCE PRODUCCIONES: Credit Check in Bankruptcy to End Mar 22
YETTY PLAST: Seeks Court Permission to Undergo Reorganization


B R A Z I L

ALCOA ALUMINIO: Fitch Affirms B+ Sr. Unsec. FC Rating
BRASKEM: S&P Affirms `BB-' Local Currency Rating
CELG: Loses Legal Battle Against CDSA
COPEL: Decides to Sell 16.73% Enercan Stake
COPEL: Decides to Increase Participation in Elejor

PARMALAT: Placed Into Extraordinary Administration
PARMALAT: Brazilian Unit Makes Partial Payment On Milk Co-Op Debt
PARMALAT: Nestle One of Interested Buyers Says Brazilian Official


J A M A I C A

C&WJ: To Expand Mobile Network With Ex-Im Bank-Financed Exports


M E X I C O

NII HOLDINGS: Files Resale Registration Statement


P A N A M A

CSS: Reports Lower-Than-Expected Deficit in 2003


V E N E Z U E L A

PDVSA: Citgo Reports Higher Profits, Operating Income

     -  -  -  -  -  -  -  -

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

ALONSO BENITEZ: Files "Concurso Preventivo" Motion at Court
-----------------------------------------------------------
Buckling under debts it has failed to repay since November 2001,
Argentine company Alonso Benitez y Cia. S.A. is seeking court
permission to undergo reorganization. According to local
newspaper La Nacion, the Company submitted a motion for "Concurso
Preventivo" at Buenos Aires Court No. 17. Clerk No. 34 assists
the court on the case.

CONTACT:  Alonso Benitez y Cia. S.A.
          3rd Floor, Office 306
          Uruguay 385
          Buenos Aires


BANCO HIPOTECARIO: Restructures $1.2B of Debt
---------------------------------------------
Banco Hipotecario successfully restructured Tuesday its US$1.2-
billion debt with creditors, according to Reuters. The deal
covered US$913 million in bond debt and US$302.4 million in bank
debt.

Sources close to the negotiations revealed that creditors holding
94% of the debt in bonds accepted the bank's offer and creditors
with 100% of debt in bank loans accepted the proposal.

Hipotecario proposed that creditors swap bonds with maturities up
to 2008 for bonds that mature in 2013.

The bank defaulted on its debt last year amid the country's
economic crisis.

The Argentine government owns 44% of Banco Hipotecario. Other
shareholders include local pension funds and Argentine real
estate firm IRSA.


BANCO HIPOTECARIO: IRSA Increases Participation
-----------------------------------------------
IRSA-Inversiones y Representaciones SA, a leading Argentine real
estate developer, raised its ownership in Banco Hipotecario,
reports Dow Jones Business News.

Accordingly, IRSA took control of the majority stake that it
formerly shared with financier George Soros when it acquired 7.47
million Class D shares and 70,996 warrants of Banco Hipotecario
from EMOF LLC and Quantum Industrial Partners LDC. EMOF and
Quantum are investment funds of Soros, who also pumped money into
IRSA in 1991, when the real estate company was just starting.

In addition to that, Ritelco SA, a unit in which IRSA owns a 100%
stake, acquired 3.43 million Class D shares and 32,615 warrants
of Banco Hipotecario from EMOFF and Quantum.

The shares, according to Dow Jones, were priced at ARS7.05 each
($1=ARS2.935) and the warrants at ARS100 each.

IRSA's chief executive officer, Eduardo Elsztain, was quoted in
local media Wednesday as saying IRSA's acquisition is the 7.5%
stake in Banco Hipotecario that belonged to Soros.

Meanwhile, in a statement to the stock exchange, IRSA said it
sold 5.49 million Class D shares and 52,976 warrants of Banco
Hipotecario to Inversiones Financieras del Sur SA. Ritelco sold
1.29 million Class D shares and 13,908 warrants to Inversiones
Financieras del Sur and Dolphin Fund. The prices for the shares
and warrants were also ARS7.05 and ARS100 per unit, respectively.
These transfers were made as part of "statutory regulations" of
Banco Hipotecario, the statement said.

Inversiones Financieras del Sur is another Elsztain-owned unit.
Dolphin Fund Management, a founding shareholder of IRSA, is an
investment fund headed by former IRSA executive Marcelo Mindlin.
Mindlin left IRSA in late November to focus on running the fund.


CABLEVISION: Postpones Debt Offer Deadline For Ninth Time
---------------------------------------------------------
Argentine cable operator Cablevision SA once again postponed the
expiry date for its debt restructuring offer, reports Dow Jones.

In a statement filed with the Buenos Aires stock exchange
Tuesday, Cablevision said it has extended until Jan. 9 its offer,
which last expired on Dec. 29. This is the ninth extension since
Cablevision's original deadline of Oct. 10.

The extension came after the Dec. 29 deadline saw only creditors
holding about US$248.9 million out of US$725 million in eligible
bonds subscribe to the offer.

Although the latest number of subscriptions is slightly more than
the US$245.3 million the Company had secured as of its previous
deadline, it still falls short of the two-thirds approval needed
to move ahead with the out-of-court restructuring agreement,
known by its Spanish acronym as an APE.

After getting two-thirds agreement, Cablevision can secure legal
approval for its APE that will make the debt restructuring
binding for all creditors.

Cablevision's offer includes buying back up to US$270 million of
the debts at 37% of their original value. The Company is putting
up US$54.9 million while 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.


CENTRAL DE REFRIGERACION: Court Orders Bankruptcy
-------------------------------------------------
Buenos Aires Court No. 14 declared local company Central de
Refrigeracion S.R.L. bankrupt, reports Argentine news portal La
Nacion. Clerk No. 28 assists the court on the case, the source
adds.

The court assigned Ms. Ester Alicia Ferrarao as the Company's
receiver. Creditors must present their claims to the receiver for
verification before March 22 this year.

The individual reports, which contain the results of the
verification process, are due at the court on May 6, followed by
the general report on June 22. The Company's assets will then be
liquidated to reimburse its creditors. Payments will be based on
the results of the verification process.

CONTACT:  Ester Alicia Ferrarao
          Esmeralda 960
          Buenos Aires


CONSTRUCTORA EMBALSE: To Undergo Reorganization
-----------------------------------------------
Buenos Aires Court No. 20 is considering a motion for "Concurso
Preventivo" filed by local company Constructora Embalse Casa de
Piedra S.A., reports local newspaper La Nacion. The Company
stopped making debt payments since December 22. Clerk No. 40 aids
the court on the case.

CONTACT:  Constructora Embalse Casa de Piedra S.A.
          4th Floor,
          Ave Roque Presidente Roque Saenz Pena 832
          Buenos Aires


CONSTRUCTORA LATINOAMERICANA: Enters Bankruptcy on Court Orders
---------------------------------------------------------------
Constructora Latinoamericana S.A. entered bankruptcy on orders
from Buenos Aires Court No. 15. The Company is now in the hands
of its receiver, Mr. Miguel Angel Tregob.

The credit verification process ends on March 25 this year. This
is done to determine the nature and amount of the Company's
debts. The receiver, who verifies creditors' claims, will also
prepare the individual and general reports. The source, however,
did not indicate whether the court, which works with Clerk No. 30
on the case, has set the filing deadlines for the receiver's
reports.

CONTACT:  Miguel Angel Tregob
          Lima 287
          Buenos Aires


CTI MOVIL: Court Approves APE
-----------------------------
Argentine wireless telecommunications firm CTI Movil, a unit of
Mexican America Movil, has become the first company in having an
out-of-court debt agreement (APE) approved by court.

Now, the accord subscribed between CTI and the majority of the
holders of a US$262.8-million bond issue will be mandatory to all
of the holders of these notes.

CTI offered to repurchase debt for cash at 13% of face value,
price that grew to 14.1% adding certain due interest payments.
Even though this was an aggressive offer, it was accepted by
almost 99% of the bondholders. Through this process, the Company
managed to reduce its debt by US$263 million paying only US$37
million.

CTI's US$1-billion debt-restructuring process has been very
complex and started in May 2002, just in the middle of
Argentina's crisis. Although America Movil wasn't part of CTI at
that time, it started to repurchase CTI's debt on the market.
According to a report by Deutsche Bank, America Movil and Grupo
Inbursa invested US$182.4 million to rescue US$661 million of
CTI's operating debt. They also paid US$63.5 million to settle a
US$230-million debt to Lucent.

While America Movil was acquiring a big part of CTI's debt,
Verizon and The Blackstone Group - its former controlling
companies - sold 100% of CTI's capital stock to Coinmov, a group
owned by Coinvest. Some time later, America Movil acquired an 80%
interest in CTI.


EXPRESO SANTULLI: Receiver Verifies Claims in Bankruptcy
--------------------------------------------------------
Ms. Marta Susana Serra, receiver for bankrupt Argentine company
Expreso Santulli S.R.L. is verifying creditors' claims until
March 11 this year. This part of the bankruptcy process is done
to determine the nature and amount of the Company's debts.

Argentine news source Infobae reports that Buenos Aires Court No.
15 handles the case with assistance from Clerk No. 29. The source
did not indicate whether the court has set the filing deadlines
for the individual and general reports.

CONTACT:  Marta Susana Serra
          Donato Alvarez 862
          Buenos Aires


GARAJE BELGRANO 868: Enters Bankruptcy on Court Orders
------------------------------------------------------
Buenos Aires Court No. 9 ordered the bankruptcy of local company
Garaje Belgrano 868 S.A., reports local newspaper La Nacion. The
Company stopped making debt payments at the end of this month.
Clerk No. 17 works with the court on the case, which will close
with the liquidation of the Company's assets.

CONTACT:  Garaje Belgrano 868 S.A.
          Ave Belgrano 868
          Buenos Aires


JORGE COTO: Court Assigns Receiver to Oversee Bankruptcy
--------------------------------------------------------
Buenos Aires Court No. 15 assigned Mr. Mario Suez as receiver for
local company Jorge Coto y Hermanos S.A., relates Argentine news
source Infobae. The receiver has instructions to authenticate
creditors' claims until March 15, 2004.

Clerk No. 29 assists the court on the case, which will close with
the liquidation of the Company's assets to repay creditors.
Payment distribution will be based on the results of the
verification process.

CONTACT:  Mario Suez
          Rodriguez Pena 454
          Buenos Aires


LES AMIES: Credit Check Ends March 25
-------------------------------------
The credit verification process for the bankruptcy of Buenos
Aires-based Les Amies S.A. will end March 25 this year. Creditors
must present their claims to the Company's receiver, Mr. Hector
Jorge Garcia, before the said date in order to qualify for
payments to be made after the Company's assets are liquidated at
the end of the bankruptcy process.

Argentine news portal Infobae reports that the city's Court No.
15 handles the Company's case while Clerk No. 30 assists. The
source, however, did not mention whether the court has set the
filing deadlines for the receiver's reports.

CONTACT:  Hector Jorge Garcia
          Montevideo 734
          Buenos Aires


MABEGO: Enters Bankruptcy on Court Orders
-----------------------------------------
Argentine company Mabego S.R.L. entered bankruptcy on orders from
Buenos Aires Court No. 2, reports local news portal Infobae.
Working with Clerk No. 4, the court assigned Mr. Mario Aragon to
oversee the bankruptcy process as the Company's receiver.

The receiver's duties include the verification of creditors'
claims until March 19, and the preparation of the individual and
general reports. Infobae, however, did not mention whether the
court has set the submission deadlines for the receiver's
reports.

CONTACT:  Mabego S.R.L.
          Emilio Mitre 130
          Buenos Aires

          Mario Aragon
          Alsina 1535
          Buenos Aires


QUIMICA ESTRELLA: Seeks To Close Debt Renegotiation By March 2004
-----------------------------------------------------------------
While it keeps reorganizing its share ownership, Argentine food
and chemical company Quimica Estrella expects to have the
renegotiation of its financial debt closed before March 31, 2004.

The Company has been in talks with creditor banks for the past
six months and expects to close a deal in the first quarter of
2004, so as to be in conditions to carry out new investment
plans.

Quimica Estrella has been reorganizing its share structure after
Grupo Rohm sold its stake last April. Now the Company is owned by
Grupo Empresarial Alimentos Europeos (25.673%), Credit Suisse
First Boston (20%), businessman Daniel Van Lierde (10.7%), Banco
Patagonia Sudameris (7.2%) and the local central bank (5%). Other
20% floats on the stock exchange.


SANCOR: $300M of Bonds Get Default Ratings From Argentine S&P
-------------------------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
assigned default ratings to corporate bonds issued by Argentine
company Sancor Coop. Unias Ltda.. The rating was based on the
Company's finances as of the end of September this year.

According to the Comision Nacional de Valores, Argentina's
securities regulator, the bonds were called "Programa de
Obligaciones Negociables" due on April 23, 2006. The bonds, worth
a total of US$300 million, were classified under "program", the
source added without revealing the bonds' CUSIP.

The ratings agency said that bonds are given 'raD' ratings when
it is payment default or when its obligor has filed for
bankruptcy. The rating may also be issued if the principal or
interest payments are not made on time, even if the applicable
grace period on such payments have not expired, unless S&P has
reason to believe that payments will be made during such grace
period.


SICKTEST: Undergoes Bankruptcy Proceedings
------------------------------------------
Argentine company Sicktest S.A. is bankrupt, reports local news
portal Infobae. Buenos Aires Court No. 11 issued the bankruptcy
order, the report says, adding Clerk No. 21 assists the court on
the case.

The Company's receiver, Mr. Hugo Adriano Zaragoza will examine
and authenticate creditors' claims until March 17 this year. The
individual reports, which contain the results of the verification
process, are to be submitted on April 28. After these are
processed at the court, the receiver will prepare the general
report, which must be submitted on June 10.

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

CONTACT:  Hugo Adriano Zaragoza
          25 de Mayo 596
          Buenos Aires


TELECOM ARGENTINA: Authorities Approve New Ownership Structure
--------------------------------------------------------------
Telecom Argentina, the country's second-largest telco, confirmed
that local regulators have approved the sale of France Telecom's
indirect stake in the phone company to a local investment group.

In a press released issued Monday, Telecom Argentina confirmed
approval from the Communications Secretary and the Secretary for
Defense of Competition, the country's anti-trust regulator.

Argentine investment group W de Argentina, a property of local
investment group Werthein, agreed to pay US$121 million for
France Telecom's 48% stake in Sofora Telecomunicaciones SA, a new
holding company created by Telecom Italia SA and France Telecom.
Sofora owns a 51% stake in Nortel Inversora SA, which in turn
owns 55% of Telecom Argentina.

The Argentine fixed-line company, formerly known as Telecom
Argentina-Stet France Telecom SA, changed its name to Telecom
Argentina. It also announced the appointment of Gerardo Werthein,
representing W de Argentina, as the Company's new vice president.


TELEFE: Reaches $50M Debt Deal With Creditors
---------------------------------------------
Argentine TV broadcaster Telefe, a unit of the Telefonica group,
has reached an agreement with its creditors to restructure a
US$50-million debt.

This was an issue we had to solve and we succeeded, said Telefe
President and CEO Jorge Perez Bello. Even though the debt dated
from 1997 (when the Company was controlled by CEI and Editorial
Atlantida), it was our responsibility to find a solution, Perez
added.

The Company will repay the debt in installments and advertising
seconds. However, the arrangement with each creditor will be
different.

Some of Telefe's most outstanding creditors are The Walt Disney
Company, Warner and Fox.

Four months ago, Disney sued Telefe because the broadcaster
hadn't paid some movies it had bought. Disney claimed Telefe had
been missing payments for the past six years and said the debt
reached US$4 million.

Although the Company doesn't want to reveal the figures of its
2003 balance sheet, it is said that Telefe will post earnings
this year, after five years of losses.


TRANSPORTES DIVANO: Court Orders Bankruptcy
-------------------------------------------
Buenos Aires Court No. 10 ordered the receiver for bankrupt local
company Transportes Divano Hermanos S.R.L. to examine and
authenticate creditors' claims until April 5 this year. Creditors
are required to present their claims to the receiver, Mr. Manuel
Gonzalez, before the date in order to qualify for payments to be
made after the Company's assets are liquidated.

Clerk No. 19 assists the court on the case. The source, however,
did not mention whether the court has set the deadlines for the
submission of the receiver's reports.

CONTACT:  Transportes Divano Hermanos S.R.L.
          Concordia 1513
          Buenos Aires

          Manuel Gonzalez
          Deheza 2357
          Buenos Aires


VINTAGE PETROLEUM: Fails To Reach Agreement With El Paso
--------------------------------------------------------
Vintage Petroleum, Inc. (NYSE:VPI) announced Wednesday that
negotiations, which extended beyond the scheduled closing date
for the $52.5 million acquisition of producing properties in the
Uinta basin of Utah from subsidiaries of El Paso Corporation,
have ended. Diligent efforts did not allow the parties to reach
an agreement regarding certain matters to be resolved prior to
closing and the agreement has been terminated by both parties.

"We pride ourselves on our ability to close acquisitions once we
enter into negotiations and I cannot recall any other instance in
Vintage's long acquisition history when we have been a party to
an acquisition agreement and closing has not occurred," stated S.
Craig George, CEO.

"We remain committed to growth both through acquisitions and the
drillbit and will continue to be a significant player in the
acquisition marketplace with a focus on opportunities where we
can add value."

2004 Targets Revised

In the Company's press release of November 10, 2003, announcing
the acquisition agreement, it was estimated that net production
attributable to the 80 percent operated working interest in
fields primarily in Duchesne and Uintah counties in Utah was
2,000 barrels of oil and natural gas liquids per day and 920
thousand cubic feet per day. In addition to the property
interests, Vintage was to acquire the majority interest and
operational control of certain gas plants which would have
increased Vintage's natural gas gathering and processing income.

Vintage's previously announced 2004 targets anticipated a closing
of this transaction by year-end 2003 and are detailed under the
heading "Previous 2004 Targets" in the accompanying table. The
impact on the 2004 targets of the termination of this acquisition
agreement is reflected in the "Revised 2004 Targets" in the
accompanying table. Additional oil price hedges now in place
partially offset the impact on the revised cash flow and EBITDAX
targets for 2004. (See the accompanying table for a listing of
the current oil hedges http://bankrupt.com/misc/table.htm)

Vintage Petroleum is an independent energy company engaged in the
acquisition, exploitation, exploration and development of oil and
gas properties and the marketing of natural gas and crude oil.
Company headquarters are in Tulsa, Oklahoma, and its common
shares are traded on the New York Stock Exchange under the symbol
VPI.


X PERIENCE PRODUCCIONES: Credit Check in Bankruptcy to End Mar 22
-----------------------------------------------------------------
The credit verification period for the bankruptcy of Buenos
Aires-based X Perience Producciones S.R.L. will end March 22 this
year. Creditors must present their claims to the Company's
receiver, Mr. Salomon Wilhelm, for verification before the said
date.

The city's Court No. 23, which handles the Company's case,
requires the receiver to file the individual reports on May 7.
These reports contain the results of the credit verification
process. After these are processed at court, the receiver will
prepare the general report, which must be submitted to the court
on June 22.

CONTACT:  Salomon Wilhelm
          Lavalle 1290
          Buenos Aires


YETTY PLAST: Seeks Court Permission to Undergo Reorganization
-------------------------------------------------------------
Argentine plastic company Yetti Plast S.A. seeks court permission
to undergo reorganization, having stopped making debt payments in
June 2002. Local newspaper La Nacion reports that the Company
filed its "Concurso Preventivo" motion at the city's Court No. 9.
Clerk No. 18 cooperates with the court on the case.

CONTACT:  Yetty Plast S.A.
          Alejandro Magarinos Cervantes 4742
          Buenos Aires



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

ALCOA ALUMINIO: Fitch Affirms B+ Sr. Unsec. FC Rating
-----------------------------------------------------
Fitch Ratings has affirmed the 'BBB-' foreign currency rating of
the secured exports notes (SENs) issued by Alcoa Aluminio S.A.
(Aluminio). Fitch has also affirmed Aluminio's 'BBB-' local
currency debt rating and its 'B+,' senior unsecured foreign
currency rating. The foreign currency rating is constrained by
the Federative Republic of Brazil's 'B+,' foreign currency
rating. Fitch has also affirmed the 'AA' (bra) national scale
rating. The Rating Outlook is Stable.

Aluminio's local currency, SENs and national scale ratings are
based on the company's ownership structure, strong operating
fundamentals as a leading aluminum producer in Latin America and
its conservative financial profile. Aluminio has achieved a solid
competitive position as a low-cost, fully integrated aluminum
producer. Parent company Alcoa, Inc. (Alcoa) of the United States
provides Aluminio with significant operational and financial
support and owns about half of the company's long-term debt and
all of its equity.

Fitch expects the company to end the year with EBITDA of about
$170 million, total debt of about $390 million (including $142
million in obligations that Aluminio has guaranteed for two
hydroelectric projects) and cash of $130 million. As a result,
the company is expected to have a net debt-to-EBITDA ratio of
about 1.5 times (x). Interest coverage, as measured by EBITDA-to-
interest expense, should be about 4.7x as of year-end 2003.

The rating of Aluminio's secured export notes due in 2008
reflects the corporate credit quality of the company and the
transaction structure. This structure mitigates certain sovereign
transfer and convertibility risks and allows the transaction to
be rated above Brazil's foreign currency rating of 'B+'. The
structural features of Aluminio's securitization transaction
include an offshore trust and collection account, debt-service
coverage by a multiple of export receivables, a six-month
interest and principal reserve account, key financial covenants
and periodic performance tests based on export receivables
collection. In addition, all designated customers are required to
sign agreements to direct their payments to the offshore
collection account.

Brazilian economic conditions and government policies can
significantly affect Aluminio's results since, historically,
approximately 60%-85% of the company's revenues was derived from
the Brazilian market. This exposure to Brazil constrains the
local currency rating. For example, in 2001, cutbacks in
production and export sales occurred due to the energy crisis in
Brazil as well as the strategic decision to redirect production
to the domestic market to take advantage of tax credits. These
factors lowered cash flow to the offshore export trust and
reduced the SENs' debt-service coverage ratio (DSCR). However, a
back-up aluminum supply agreement with Alcoa exists to supplement
exports and provide a minimum DSCR of 1.25x.

The company has the flexibility to shift sales between the
domestic and export markets. Aluminio recently made a strategic
decision to focus on primary aluminum production and direct more
aluminum ingot sales to the export market. This focus on its core
strength supports the assigned ratings. Aluminio also plans to
divest non-core business units, such as the plastic packaging
operations.

In 2003, Fitch expects Aluminio to have a total sales volume of
270,000 tons. The company plans to export 120,000 tons of
aluminum ingot, use 75,000 tons in downstream applications and
sell 75,000 tons in the domestic market. Prices for domestic and
export sales of aluminum ingot are now at about $1,550 per ton,
10% higher than several months ago, due to the current global
economic strength.

Aluminio is the second largest privately owned, integrated
aluminum producer in Latin America. The company produces alumina,
primary aluminum and related industrial chemicals; fabricated
aluminum products; and packaging products, such as PET pre-forms
and bottles. In 2002, Aluminio's total sales volume was 290,000
tons. The company exported 123,000 tons of aluminum ingot, used
83,000 tons in downstream applications and sold 84,000 tons in
the domestic market. Alcoa Inc., based in the United States and
one the world's leading producers of aluminum and alumina, holds
100% of the voting stock of Aluminio.

CONTACT: Anita Saha, CFA +1-312-368-3179, Chicago
         Joe Bormann, CFA +1-312-368-3349, Chicago
         Jennifer Conner, +1-312-368-2080, Chicago
         Ricardo Carvalho, +55-21-2224-3558, Rio de Janeiro

MEDIA RELATIONS: Matt Burkhard +1-212-908-0540, New York


BRASKEM: S&P Affirms `BB-' Local Currency Rating
------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-' local
currency and 'B+' foreign currency corporate credit ratings on
Braskem S.A. (Braskem). Simultaneously, the outlook on the local
currency corporate credit rating was changed to stable from
negative. The outlook on the foreign currency corporate credit
rating remains positive.

The outlook revision reflects primarily the significant
improvement in the company's debt profile accomplished in the
past couple of months. Braskem is materially reducing its
exposure to short-term debt and therefore to refinancing risk
through the structuring of a variety of longer-term debt
transactions. These transactions, some of which are still to be
completed, essentially eliminate the bulk of the company's debt
rolling-over requirements in 2004, apart from debt related to its
normal working capital management.

"The outlook revision also reflects Standard & Poor's
expectations that the very challenging operating environment
faced by Braskem in 2003 will subside during the next year,
ultimately strengthening cash generation, profitability, and
credit measures, although these expectations are still dampened
by the uncertainties about the Brazilian economy's performance
and the intrinsic volatility of the petrochemical sector
worldwide," said Standard & Poor's credit analyst Reginaldo
Takara.

Despite these positive expectations for 2004, the corporate
credit rating on Braskem reflects the still-challenging economic
environment faced by the company in Brazil (reflected by limited
and gradual growth trends for the Brazilian economy in the medium
term and volatile foreign exchange rates, both of which tend to
compress the company's cash-generation capabilities in dollar
terms), unstable and currently high feedstock prices, and an
improving but still aggressive financial profile. These negatives
are partly offset by Braskem's leading business and market
position in the Brazilian petrochemical industry (which Standard
& Poor's acknowledges as peculiarly less fragmented and therefore
more favorable to Braskem than other more mature markets
worldwide), strong and traditionally stable cash generation
(proven resilient even under reasonably stressful economic and
market environments in Brazil), and expectations that the
company's debt profile will become more comfortable through a
smoother amortization schedule during the next several years.

The stable outlook on Braskem's local currency corporate credit
rating reflects the company's improving financial profile,
essentially due to a reducing exposure to short-term debt through
March 2004. Although Braskem is expected to remain reasonably
exposed to banking market conditions in the medium term, as total
debt will be reduced only gradually in the years ahead, the
company proved to be successful when managing very stressful
financial environments in the past two years and is expected to
maintain a more comfortable debt profile and amortization
schedule from now on, thanks to the new transactions closed.

ANALYST:  Reginaldo Takara
          Sao Paulo
          Phone: (55) 11-5501-8932

          Milena Zaniboni
          Sao Paulo
          Phone: (55) 11-5501-8945


CELG: Loses Legal Battle Against CDSA
--------------------------------------
Brazil's Goias state distributor Celg lost in its judicial battle
against hydroelectric generator Cachoeira Dourada (CDSA),
Business News Americas indicates.

According to a CDSA statement, regional federal court judge
Selene de Almeida ruled on December 19 that Celg deposit the
money it owes CDSA for power purchases since July in an escrow
account.

Celg wanted to suspend the energy supply contract, claiming the
BRL63 (US$22) per MWh charged by CDSA was double its other power
purchase agreements. Chilean generator Endesa bought CDSA in
1997. The purchase included the company's sole operating asset, a
658MW plant, and a 15-year contract to supply Celg.

In April 2003, a local court ruled in favor of Celg and suspended
the contract, which was then judged legal on July 2. However, the
court ruled that Celg pay only half the set rate.

On July 23, higher court judge Jirair Meguerian reinstated the
original values, reviewing his decision on July 29 and ruling
that Celg pay only half the BRL31.5/MWh set price for the
contact.

The December 19 ruling favors payment of the full BRL63 rate,
says Business News Americas.

CONTACT:  COMPANHIA ENERGETICA DE GOIAS (CELG)
          Rua 2 - Qd. A-37 - Edificio Gileno Godoi
          Jardim Goias - Goiania - Goias
          Brazil
          CEP: 74805-180
          Phone:  (0XX62)   243-2222
          Fax:  (0XX62) 243-2100
          Email: celg@celg.com.br
          Home Page: www.celg.com.br/
          Contact:
          Jose Walter Vazquez Filho,  President
          Phone: (0XX62) 243-1001
          Samuel Albernaz, Administrative Director
          Phone: (0XX62) 243-1031
          Javahe de Lima, Economic-Financial Dir./Investor
                                                  Relations
          Phone: (0XX62) 243-1041


COPEL: Decides to Sell 16.73% Enercan Stake
-------------------------------------------
As provided by CVM Instruction 358/2002, Companhia Paranaense de
Energia - Copel informs its shareholders and the market that, at
the redefinition of its strategic plan, the Company decided to
sell its participation of 16.73% in Campos Novos Energia S.A. -
Enercan, a special purpose company constituted to build and
explore Campos Novos Hydroelectric plant, located in river
Canoas, Santa Catarina, with installed capacity of 880 MW, as
well as the participation in the respective transmission system.

Companhia Brasileira de Alum¡nio - CBA and Companhia Niquel
Tocantins - CNT, shareholders of Enercan, exercised their right
of first refusal and acquired the shares owned by Copel.

The transaction will be concluded as soon as it is homologated by
the Brazilian power sector regulatory body - ANEEL.

CONTACT:  Cia Paranaense de Energia (COPEL)
          Rua Colonel Dulcidio, 800
          Batel
          80420-170 Curitibia - PR
          Brazil
          Phone: +55 41 322-3535
          Fax  +55 41 224-4312
          Home Page: http://www.copel.br


COPEL: Decides to Increase Participation in Elejor
--------------------------------------------------
As provided by CVM Instruction 358/2002, Companhia Paranaense de
Energia - Copel informs its shareholders and the market that, at
the redefinition of its strategic plan, the Company decided to
increase its participation in the special purpose company
Centrais Eletricas do Rio Jordao S.A - Elejor, which holds the
concession for exploration, operation and commercialization of
the complexes Santa Clara and Fundao, located in river Jordao.

For that purpose, the Company signed a Commitment Letter for the
Sale and Purchase of Shares issued by Centrais Eletricas do Rio
Jordao - ELEJOR. This document formalizes the acquisition, by
Copel, of all the shares held by the company Triunfo, which
represents 30% of the common shares issued by Elejor. With this
transaction, Copel now holds 70% of the control of ELEJOR.

The closing of this transaction is subjected to the approval of
the Legislative Body of the State of Parana, as well as of the
Brazilian power sector regulatory body - ANEEL.


PARMALAT: Placed Into Extraordinary Administration
--------------------------------------------------
According to Legislative Decree no. 347 of 23 December 2003,
Parmalat Spa has been placed into Extraordinary Administration
and the Minister of Productive Activities has, by decree,
appointed Dr. Enrico Bondi to the role of Extraordinary
Commissioner of the Company.

Further, Parmalat Spa was declared insolvent by the Court of
Parma on 27 December 2003.

The Board of Directors of Eurolat Spa, called for 27 December
2003 for the appointment of the Chairman, did not take place.


PARMALAT: Brazilian Unit Makes Partial Payment On Milk Co-Op Debt
-----------------------------------------------------------------
The Brazilian unit of the embattled Italian food company Parmalat
on Tuesday paid 30% of a debt owed to milk producers in Rio de
Janeiro state, Reuters reports, citing a source close to the
Company.

O Globo newspaper revealed Tuesday that Parmalat Brasil SA owes
some BRL2.3 million (about $805,000) to close to 10,000 dairy
farmers for milk purchased in November. The payment was due Dec.
15, but the deadline was extended.

The source, who asked not want to be identified, said that
negotiations were continuing about payment of the balance.

The situation is of particular concern to dairy industry
representatives because on Jan. 5, 2004, the Company must pay a
similar amount for the product received in December.

The Brazilian government is also concerned. The Agriculture
Ministry said on Tuesday that it will call a meeting of the milk
and dairy products chamber in early January to discuss the impact
of Parmalat's financial problems.

"We will discuss what measures could be taken to avoid harm to
the sector," Linneu Carlos da Costa Lima, Secretary of Production
and Trade, said in a statement.



PARMALAT: Nestle One of Interested Buyers Says Brazilian Official
-----------------------------------------------------------------
Linneu Carlos da Costa Lima, secretary of production and
marketing at Brazil's Agriculture Ministry, said Nestle SA, the
world's biggest food company, is one of five or six companies
that want to buy the local unit of Parmalat Finanziaria SpA,
relates Bloomberg News.

However, Nestle Brasil Ltda said in a statement that it has "no
interest" in buying Parmalat's Brazilian unit.

Parmalat, which got 21% of its revenue from South America last
year, was declared insolvent Saturday by a court in Parma, Italy
as investigators probe Calisto Tanzi, the Company's former head,
for crimes including fraudulent bankruptcy, misappropriation of
funds and market manipulation.

Tanzi admitted to prosecutors that he knew the Company's accounts
were being falsified to hid losses of as much as EUR8 billion
(US$10 billion.)

According to court papers, Tanzi said that from 1998 Parmalat's
balance sheet had been altered to cover up losses in Latin
America. In the past year, the Company was hurt by a slump in the
Brazilian and Argentine currencies, Tanzi said.



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

C&WJ: To Expand Mobile Network With Ex-Im Bank-Financed Exports
---------------------------------------------------------------
Cable and Wireless Jamaica Limited (CWJ) is purchasing U.S.-
manufactured cellular communications and equipment from Nortel
Networks Inc., and eight other U.S. exporters as part of a $173
million project, with the assistance of a $72.3 million, seven-
year loan guarantee from the Export-Import Bank of the United
States (Ex-Im Bank).

Cable and Wireless Jamaica, a majority-owned subsidiary of
British-based Cable and Wireless PLC, has contracted with Nortel
to create a general service mobile (GSM) network with island wide
coverage and to upgrade CWJ's existing data-transmission landline
network. Ex-Im Bank is guaranteeing a loan by Citibank N.A., of
New York, N.Y., to CWJ.

"The United States provides the best in technologically
sophisticated equipment such as this, which will help improve
telecommunications service in Jamaica," Ex-Im Bank Chairman
Philip Merrill said. "Ex-Im Bank is pleased to support exports
like these, which benefit workers and companies in the United
States, as well as people in emerging markets like Jamaica."

Nortel, of Sunrise, Fla., is the lead exporter and is providing
base station transceivers. The other U.S. exporters are: Hewlett
Packard Company of Wellington, Fla., providing computer hardware
and software; PowerTech Services Inc., of Hamilton, N.J.,
providing emergency generators; Digital Island Inc., of San
Francisco, Calif., providing design services; Glenayre
Electronics Inc., of Duluth, Ga., providing messaging hardware
and software; Tallard Technologies of Miami, Fla., providing a
PABX system; Global Communications Consulting of Avon, Colo.,
providing radio equipment; and Rohn Industries Inc. of Peoria,
Ill., providing transmission towers.

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
          URL: www.exim.gov



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

NII HOLDINGS: Files Resale Registration Statement
------------------------------------------------
NII Holdings, Inc. (Nasdaq: NIHD) filed with the Securities and
Exchange Commission on December 5, 2003 a registration statement
on Form S-3 for the resale by selling security holders of notes
and underlying shares of common stock relating to its $180
million aggregate principal amount 3-1/2% convertible notes due
2033. The notes were privately placed in September 2003 and are
subject to a registration rights agreement. NII anticipates that
the registration statement will become effective on or before
March 12, 2004, as required by the registration rights agreement.

About NII Holdings, Inc

NII Holdings, Inc., a publicly held company based in Reston, Va.,
is a leading provider of mobile communications for business
customers in Latin America. NII Holdings, Inc. has operations in
Argentina, Brazil, Mexico and Peru, offering a fully integrated
wireless communications tool with digital cellular service,
text/numeric paging, wireless Internet access and Nextel Direct
Connectr, a digital two-way radio feature. NII Holdings, Inc.
trades on the Nasdaq market under the symbol NIHD. Visit the
Company's website at http://www.nii.com.

Nextel, the Nextel logo, Nextel Online, Nextel Business Networks
and Nextel Direct Connect are trademarks and/or service marks of
Nextel Communications, Inc.

CONTACTS:  Investor Relations: Tim Perrott
           Tel: 703-390-5113
           Email: tim.perrott@nii.com

           Media Relations: Claudia E. Restrepo
           Tel: 786-251-7020
           Email: claudia.restrepo@nii.com



===========
P A N A M A
===========

CSS: Reports Lower-Than-Expected Deficit in 2003
------------------------------------------------
Panama's state-run social security agency CSS reported a deficit
of around PAB50 million (US$50 million) in 2003, an improvement
on the PAB80-million forecast, reports Business News Americas.

CSS chairman Erasmo Munoz attributed the improvement on measures
introduced in the second half of the year.

The agency's present administration took steps to reverse poor
investment decisions made by the agency's previous board, Munoz
said, adding that further measures need to be established to
ensure that a similar deficit figure is not posted next year.

The agency's deficit was also attributed to rising unemployment
among affiliates, he added.

The government of Panama is awaiting the results of a technical
analysis before presenting its new proposals to confront the
agency's financial woes.



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

PDVSA: Citgo Reports Higher Profits, Operating Income
-----------------------------------------------------
Citgo Petroleum Corp., the U.S. unit of Venezuela's state oil
company PDVSA, obtained more than US$890 million in operating
income and more than US$500 million in net profits for the year
2003, preliminary numbers show.

According to Citgo President Luis Marin, the 2003 operating
income and profits represent an increase of about 100% in
comparison with the previous year.

Higher profit is "the result of many factors, including the
integration of Petroleos de Venezuela and Citgo into a coherent
force in watching the market and placing products," Marin said.
"In the past, they competed."

Petroleos de Venezuela decided this year not to sell the U.S.
company after saying in January it was evaluating a possible sale
of Citgo to provide investment funds as a nationwide strike
slashed output and sales. The strike, which was intended to force
President Hugo Chavez from office, ended Feb. 1.

Marin also revealed that CITGO will make substantial payments in
dividends and debt in 2004.

"We are planning to pay about 270 million in credits and to
generate dividends over US$200 million," he added.

CITGO has a debt contracted in previous administrations of about
US$1.1 billion and it has assets of about US$12 billion.

"This company is in good shape and its debt is perfectly
manageable". Marin added that the Company's liquidity is over
US$700 million.



               ***********


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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Copyright 2004.  All rights reserved.  ISSN 1529-2746.

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