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        T R O U B L E D   C O M P A N Y   R E P O R T E R

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

            Tuesday, March 2, 2004, Vol. 5, Issue 43

                            Headlines
A R G E N T I N A

CORREO ARGENTINO: U.S. Judge Calls On Trustee
DIRECTV LA: Court Disallows $16.5M Late-Filed Televisa Claim
GATIC: French Sports Brand Puts End To Contract
IRSA: Finance Manager Quits Post; Yet To Name Replacement
METROPOLITANO: To Incorporate Seized Locomotives in 2 Weeks


B O L I V I A

* IMF Staff Statement on Bolivia


B R A Z I L

BRASKEM: Signs MoU With YPFB For Petchem Plant Feasibility Study
DIRECTV LA: Tecsat Moves to Block Possible Merger With Sky
PARMALAT BRASIL: Two Banks Agree to Provide Credit Lines
TELEMAR: To Seek Shareholders' Approval For Planned Bond Sale


E C U A D O R

ECUADORIAN BANKS: AGD Begins Liquidation Process


J A M A I C A

CALDON FINANCE: Liquidation Summons Members to a Meeting


M E X I C O

DIRECTV LA: Televisa Seeks to Acquire Subscriber Base
ELAMEX: Operating Loss Soars to $28.7M in 2003
EMPRESAS ICA: Reports 96% Increase in Ebitda in 4Q03


P E R U

PAN AMERICAN: Announces $55M Common Share Financing


                            *********


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


CORREO ARGENTINO: U.S. Judge Calls On Trustee
---------------------------------------------
U.S. Judge Thomas Griesa called the trustee of former Argentine
postal concessionaire Correo Argentino to confirm or deny the
statements made by the lawyers representing the State of
Argentina in the dispute for Correo's accounts in New York. They
claim that the US$11.5 million deposited in BNP Paribas and
Lehman Brothers belong not to the State but to the Company and
therefore cannot be seized as a consequence of public debt.

The deadline for the State of Argentina to defend its position
has been subsequently extended from February 27 to March 10.
After this date, Griesa will decide whether to lift the
preliminary embargo on these accounts or to rule a definitive
embargo.


DIRECTV LA: Court Disallows $16.5M Late-Filed Televisa Claim
------------------------------------------------------------
Claimholders were required to file proofs of claim with any
supporting documentation on or before the September 2, 2003, Bar
Date in the Chapter 11 cases of DirecTV Latin America, LLC, and
its debtor-affiliates. M. Blake Cleary, Esq., at Young Conway
Stargatt & Taylor, LLP, in Wilmington, Delaware, states that
Televisa S.A. de C.V.'s $16,522,655 claim was filed after the
Bar Date.

At the Debtor's request, the Court expunges Televisa's Late-
Filed Claim in full. (DirecTV Latin America Bankruptcy News,
Issue No. 21; Bankruptcy Creditors' Service, Inc., 215/945-7000)


GATIC: French Sports Brand Puts End To Contract
-----------------------------------------------
Gatic, an Argentine sports clothes and shoes manufacturer, lost
the local license for the French sports brand Le Coq Sportif,
reports El Cronista.

The French company, after continually losing its market share in
Argentina over the last few years, decided to transfer the
license to Distrinando, another local textile group, through a
5-year contract.

The transfer would hurt Gatic, which has around ARS430 million
in debt and is carrying out a formal restructuring proceeding
that started in September 2001. The Company is waiting for its
preferred creditors to approve the rental of four other plants
to an investment group led by Guillermo Gotelli.


IRSA: Finance Manager Quits Post; Yet To Name Replacement
---------------------------------------------------------
Gustavo Mariani has left his post as finance manager at leading
Argentine real estate developer IRSA-Inversiones y
Representaciones SA (IRSA.BA), reports Dow Jones.

The office of IRSA President Eduardo Elsztain confirmed Friday
that Mariani is now working for Dolphin Fund Management SA, a
local investment group that was one of IRSA's founding
shareholders, as managing director and head of corporate
finance.

IRSA has yet to name Mariani's replacement.

IRSA and Dolphin are closely related, as the fund had helped
found IRSA in the 1990s.

In November, Marcelo Mindlin, one of the two founding directors
of IRSA along with Elsztain, resigned from IRSA to become
president of Dolphin.


METROPOLITANO: To Incorporate Seized Locomotives in 2 Weeks
-----------------------------------------------------------
Argentine railway concessionaire Metropolitano said that within
two weeks it will reincorporate the locomotives that had been
seized by Japanese Mitsui in the beginning of 2003, as a result
of Metropolitano's noncompliance with the leasing contract.

Metropolitano had paid US$20 million of a total of US$30 million
and said it found it impossible to pay the rest of the debt
given the new economic context after the devaluation of the
Argentine peso. Metropolitano and Mitsui then started to
renegotiate the payment of the debt and would have agreed that
the Argentine company will pay around ARS15 million - half the
outstanding debt.


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


* IMF Staff Statement on Bolivia
--------------------------------
The following International Monetary Fund (IMF) staff statement
was released earlier Friday in La Paz:

A staff team from the International Monetary Fund (IMF) led by
Marco Pi¤¢n visited La Paz during February 12-24, 2004 to
discuss the authorities' 2004 economic program in the context of
the third review of Bolivia's Stand-By Arrangement with the
Fund. The team met with President Carlos Mesa; Minister of the
Presidency Jos, Antonio Galindo; Minister of Economic
Development Xavier Nogales; Minister of Finance Javier Cuevas;
Minister of Hydrocarbons Alvaro R¡os; President of the Central
Bank Juan Antonio Morales; Banking Superintendent Fernando
Calvo; other members of the economic team; Congressional
leaders; and members of civil society.

The mission made considerable progress toward developing a
macroeconomic framework for 2004 that would preserve economic
stability, achieve greater social inclusion, and set a
foundation for restoring growth. During the discussions,
President Mesa and his team reiterated their firm commitment to
an economic program that would allow the country to achieve
sustained growth and reduce poverty, while ensuring debt
sustainability. The staff team welcomed a number of important
recent developments, including steps to prepare the way for the
gas referendum and the constitutional assembly; the recently
issued austerity and transparency decrees; and announcement of
measures to reduce the fiscal deficit, while minimizing the
impact on the poor.

Discussions with the Bolivian authorities will continue during
the weeks ahead. The aim is to reach agreement on policies that
would allow the third review and an extension of the SBA to be
brought for Board consideration once the fiscal program has been
put in place and its financing is assured.

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

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


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B R A Z I L
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BRASKEM: Signs MoU With YPFB For Petchem Plant Feasibility Study
----------------------------------------------------------------
Brazilian petrochemical company Braskem and Bolivia's state oil
company YPFB have signed a memorandum of understanding (MOU)
regarding a feasibility study for a petrochemical plant in
Puerto Suarez on the Bolivian side of the border between the two
countries, reports Business News Americas.

Citing Brazil's mining and energy ministry, Bolivian newspapers
reported that the study could be completed by year-end. The
papers said that construction could start in 2005 if the study
is positive, but a Braskem spokesperson could not confirm that
date.

"We know that by the end of this decade Braskem will need to
increase its production capacity and we are just planning in
advance, starting by mapping all possible technical alternatives
in the region," the spokesperson said.


DIRECTV LA: Tecsat Moves to Block Possible Merger With Sky
----------------------------------------------------------
Tecsat appealed to the Brazilian Administrative Council for
Economic Defense (Cade) against the possibility of combining the
Sky and DirecTV satellite platforms in Latin America, reports O
Estado de Sao Paulo.

Tecsat, the Brazilian single rival of Sky and DirecTV in the
domestic subscription TV via satellite market, is arguing that
the merger between these groups will create concentration in
more than 5,000 municipalities that do not have cable or MMDS
operators.

Sky and DirecTV have a 95% market share and the remaining 5% or
50,000 clients are held by Tecsat.

Tecsat's appeal came after Spain's leading daily El Pais quoted
Gustavo Cisneros, Chairman of the Cisneros Group of Companies,
on Thursday as saying that he and News Corp.'s (NWS) Rupert
Murdoch have reached an agreement to combine their regional
operations.

But in a news release Friday, Mr. Cisneros said: "Looking
forward, I'm sure that all options will be considered to improve
long-term business models, but at present there are no
discussions nor any agreement reached to merge or combine the
platforms of Sky and DirecTV."

News Corp.'s purchase of a controlling stake in Hughes
Electronics Corp. (HS) in December gave it control of DirecTV
Latin America. Cisneros Group's unit Darlene Investments holds
14% of the Latin American satellite television company.


PARMALAT BRASIL: Two Banks Agree to Provide Credit Lines
--------------------------------------------------------
Parmalat Finanziaria S.p.A.'s ailing unit in Brazil on Friday
sealed credit deals with two Brazilian banks that will allow it
to keep operating, Reuters reports, citing the court-appointed
administrator in charge of the unit.

Keyler Carvalho Rocha, who was appointed by a Sao Paulo state
judge Feb. 11 to run Parmalat Brasil Industria de Alimentos,
said he also hoped the new deals would encourage other banks to
reopen credit lines to Parmalat.

"Knowing that someone else has already approved (a new loan),
the other banks are going to also be interested," he told
Reuters.

The Company would not provide details about the terms or amounts
of the credit lines or the names of the two banks that were to
provide them. The lines are to be backed by the sales revenue of
the unit.

The credit lines may help the Company restart some suspended
operations and avoid a total shutdown. Parmalat officials
reported earlier this month that the lack of credit, especially
loans for short-term working capital, had forced the Company to
slow down production. The Company reported then that it was
using just 20% of its productive capacity in Brazil, where it is
the largest seller of milk and the second-largest buyer.


TELEMAR: To Seek Shareholders' Approval For Planned Bond Sale
-------------------------------------------------------------
Telemar Participacoes will seek approval from shareholders at a
meeting slated for March 12 over a plan to sell BRL150 million
(US$50 million) of domestic bonds, reports Dow Jones. The
Company did not specify the maturity of the bonds to be sold or
offer a timeline for the proposed offering.

Telemar is the holding company of Tele Norte Leste Participacoes
(NYSE: TNE), Brazil's biggest telecommunications company.


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


ECUADORIAN BANKS: AGD Begins Liquidation Process
------------------------------------------------
After a series of delays, Ecuador's deposit insurance agency AGD
began the process of liquidating eight intervened institutions
in January this year.

The eight institutions were supposed to be liquidated in the
fourth quarter of 2003 in order to allow the third disbursement
under the IMF stand-by arrangement.

The eight institutions currently being liquidated are: Necman,
Amerca, Finiver, Valorfinsa, Financorp, Tungurahua, Occidente
and Azuay. The liquidation process, which involves payment of
workers, depositors and creditors, is expected to take around
three months per institution.

According to Wilma Salgado, head of the AGD, six other
institutions will be liquidated during the year, among them
Banco de Prestamos and Banco del Progreso. Since its creation,
the AGD has repaid US$875m to an estimated 753,000 depositors.
US$83m in payments are still pending to 2,672 depositors, of
which US$52m is owed to Banco del Progreso customers and US$31m
to Banco de Prestamos customers.


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


CALDON FINANCE: Liquidation Summons Members to a Meeting
--------------------------------------------------------
Raphael Gordon, the liquidator of failed Caldon Finance Group,
called a meeting for March 29 with members of the Company,
reports RadioJamaica.

The purpose of the meeting is to update the company members on
the liquidation process and present a statement of affairs.

Efforts to liquidate Caldon Finance, which collapsed
approximately six years ago, are still being made. Reports have
it that the completion of the process could take a while, as
there are a number of outstanding court cases involving the
Company's assets.

Mr. Gordon says until these issues are dealt with, the
liquidation will remain a work in progress especially as it
relates to secured creditors.


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


DIRECTV LA: Televisa Seeks to Acquire Subscriber Base
-----------------------------------------------------
Mexico's leading media company Grupo Televisa is in negotiations
to purchase the subscriber base of rival DirecTV in Mexico,
reports Reuters.

"It's not going to be a merger, but a purchase of subscribers,"
Alfonso de Angoitia, Televisa's financial chief, said.

"DirecTV in Mexico has a lot of costs and expenses that we would
not like to absorb, such as satellite costs and...agreements."

DirecTV Mexico's parent company, DirecTV Latin America LLC,
recently emerged from Chapter 11 bankruptcy protection.


ELAMEX: Operating Loss Soars to $28.7M in 2003
----------------------------------------------
Elamex S.A. de C.V. (Nasdaq: ELAM), a diversified manufacturing
services company with food, plastics and metals operations and
real estate holdings in Mexico and the United States, announced
Friday financial results for the fourth quarter and year ended
December 31, 2003. The Company also provided insight into its
key 2004 initiatives.

Fourth Quarter Results

As detailed below under "Financial Reporting for Precision Tool,
Die and Machine Company," operations through December 19th, 2003
are comprised of the Food Products segment (Franklin
Connections), the Metal Stamping segment (Precision) and Shelter
Services. No Precision revenues or expenses occurring subsequent
to December 19, 2003 are reflected in the Elamex consolidated
statement of operations. The Company also has a 50.1% investment
in Qualcore, an unconsolidated joint venture that manufactures
plastics and metal parts.

Fourth quarter consolidated net sales totaled $38.0 million
compared with $43.0 million for the fourth quarter of 2002. The
Food Products segment represented $21.3 million, or 56%, of
fourth-quarter 2003 consolidated net sales, compared with $19.5
million, or 45%, of consolidated net sales for the fourth
quarter of 2002. The Metal Stamping segment represented $16.1
million, or 42% of fourth quarter net sales, compared with $18.9
million, or 44% in the 2002 fourth quarter. Shelter Services
generated $3.7 million in fourth- quarter 2003 net sales, a
year-over-year decrease of 52%, due primarily to the divestiture
of the majority of this business segment during the second
quarter of 2003. There were $3.1 million of intersegment sales
between Food Products and Shelter Services that were eliminated
in consolidated net sales for the fourth quarter of 2003.

Gross profit was $5.5 million, or 15% of sales, for the fourth
quarter of 2003, compared with gross profit of $5.6 million or
13% of sales for the fourth quarter of 2002. Total operating
expenses were $25.2 million compared with $6.3 million for the
fourth quarter of 2002. Total operating expenses for the fourth
quarter included a $17.8 million impairment of long-lived
assets, comprised of a $13.2 million expense at Precision in
recognition of the impairment of long-lived assets and an
expense of $4.5 million recorded at the parent company level for
the impairment of Precision goodwill.

The $17.8 million impairment of long-lived assets and the $1.1
million accounting for equity in losses of unconsolidated
subsidiaries contributed to a net loss of $23.7 million, or
$3.15 per basic and diluted share, for the fourth quarter of
2003 compared to a net loss of $1.9 million, or $0.25 per basic
and diluted share, in the fourth quarter of 2002. In addition to
the impairments cited above, losses from manufacturing
operations at Precision also contributed to the Company's
overall operating loss and net loss.

Financial Reporting for Precision Tool, Die and Machine Company

In December 2003, Elamex announced that its board of Directors
had authorized the sale of Precision Tool, Die and Machine
Company ("Precision"), the company's Metal Stamping segment,
which filed for Chapter 11 protection on December 19, 2003.

Neither Elamex nor any of its subsidiaries or affiliates had
guaranteed any of the obligations of Precision.

As a consequence of seeking protection under bankruptcy laws,
and in view of the specific pattern of facts in this situation,
accounting rules require that Precision results of operations
are included in the consolidated results of operations for
Elamex and subsidiaries only through December 19, 2003.
Thereafter, earnings or losses of Precision are recognized in
accordance with the equity method of accounting, as defined by
generally accepted accounting principles. Accordingly, no
Precision revenues or expenses occurring subsequent to December
19, 2003, are reflected in the Elamex consolidated statement of
operations. Management expects that no future losses will be
recognized in connection with Precision because the parent
company's investment in this subsidiary has been reduced to
zero.

The equity method also defines the balance sheet presentation of
Precision. As of December 31, 2003, the net amount of Elamex's
investment in Precision is zero, excluding Precision entirely
from the consolidated balance sheet as of that date. Precision
continues to be included in the consolidated balance sheets of
Elamex and its subsidiaries for periods prior to December 31,
2003.

2003 Results

The Company reported a net sales increase of 17% to $157.3
million in the fifty-two weeks ended December 31, 2003 from
$134.3 million for 2002. The Food Products segment represented
$75.6 million or 48% of 2003 consolidated net sales, compared
with $33.2 million, or 25% of consolidated net sales for the
prior year. The Metal Stamping segment represented $71.0
million, or 45% of 2003 consolidated net sales, compared to
$75.3 million, or 56%, of consolidated net sales in 2002.
Shelter Services generated $25.7 million in 2003 net sales, a
year-over-year decrease of 19%, due primarily to the divestiture
of the majority of this business segment during the second
quarter of 2003. There were $15.1 million of intersegment sales
between Food Products and Shelter Services that were eliminated
in 2003 consolidated net sales. Elamex acquired the Food
Products segment on July 18, 2002, and the revenues and expenses
occurring prior to June 28, 2002 are not included in the Elamex
consolidation.

Gross profit was $17.9 million, or 11% of sales, for the 2003
year, compared with a gross profit of $14.1 million or 11% of
sales for 2002. Total operating expenses were $46.6 million
compared with $15.4 million for 2002. Operating loss increased
to $28.7 million from $1.3 million in 2002. Net loss for the
2003 year totaled $34.6 million, or $4.61 per basic and diluted
share, compared to a net loss of $6.0 million, or $0.84 per
basic and diluted share, in 2002. The increase in the operating
loss and in the net loss is primarily caused by the losses of
the Metal Stamping segment, as described above. In 2003, an
expense of $3.5 million was also recognized in the first quarter
in connection with goodwill for the Metal Stamping Segment, and
an expense of $2.3 million was recorded to provide a realization
reserve for certain tax assets recorded in prior periods in
connection with operating losses in Mexico.

Financial Condition

As of December 31, 2003, the Company had cash and cash
equivalents totaling $2.3 million and total assets of $67.7
million. Long-term debt and capital leases, excluding current
portion, totaled $17.1 million at December 31, 2003, and
stockholders' equity totaled $31.0 million.

Key Initiatives for 2004

"Clearly, 2003 was a year of challenge and a year of change as
we made the decision to reposition our business portfolio,"
Elamex President and Chief Executive Officer Richard P. Spencer
said. "We have shifted our focus to our Food Products Segment
which offers the most attractive opportunities for the future.
Elamex and its joint-venture partner will continue to actively
pursue strategic options for the Qualcore business."

"During 2003 the Franklin Sunrise Candy Division made
significant progress in securing its private label candy
business with some of the largest grocery chains and retailers
in the United States. Regarding the Azar Nut group within the
Food Services Segment, Mr. Spencer further commented, "This
group continues to add new products that are helping to attract
new customers and grow existing accounts. This group does not
just market food product items, but develops menu offerings for
all types of eateries using Franklin products. The sales and
marketing strategy is one of the many reasons the Azar Nut group
within our Food Service Segment was recently named the 10th best
supplier to SYSCO."

Looking ahead, Spencer intends to focus on the execution and
implementation of its growth initiatives at Franklin. These
initiatives include:

* Continue to build on existing revenue momentum. Comparing
full-year 2003 to full-year 2002, Franklin net sales increased
16.7 million, or 28%.

* Improve the profit margin structure. Comparing full-year 2003
to full-year 2002, Franklin gross profit increased $5.4 million,
or 45%.

* Expand contract manufacturing of food products. Franklin added
two new projects and expanded an existing project.

* Continue the ongoing process of sizing operating expenses to
revenues. Comparing full year 2003 to full year 2002, Franklin
operating expenses as a percent of net sales were 22% compared
to 26% in 2002.

About Elamex

Elamex is a Mexican company with manufacturing operations and
real estate holdings in Mexico and the United States. The
Company is involved in the production of food items related to
its candy manufacturing and nut packaging operations, and metal
and plastic parts for the appliance and automotive industries.
Elamex's competitive advantage results from its demonstrated
capability to leverage low cost, highly productive labor,
strategic North American locations, recognized quality and
proven ability to combine high technology with labor-intensive
manufacturing processes in world-class facilities. As a value
added provider, Elamex's key business objectives include
superior customer satisfaction, long-term supplier relationships
and employee growth and development, with the ultimate goal of
continuously building shareholder value.

To see financial statements: http://bankrupt.com/misc/Elamex.txt

CONTACTS:  ELAMEX
           Sam Henry, Chief Financial Officer
           Tel: (915) 298-3071
           Email: sam.henry@elamex.com

           Financial Relations Board:
           Moira Conlon, General Information
           Tel: (310) 407-6524
           Email: mconlon@financialrelationsboard.com


EMPRESAS ICA: Reports 96% Increase in Ebitda in 4Q03
----------------------------------------------------
Empresas ICA, a Mexican construction and engineering giant,
registered Ebitda of MXN373 million for 4Q03, a 96% increase
from the same year-ago period, reports Business News Americas.

Total sales increased 14% to MXN2.9 billion in 4Q03, as a result
of advances in projects, of which 24% was from foreign (non-
Mexican) sales. Operational costs reached MXN269 million last
quarter, down 2.2% from MXN275 million in 4Q02, while net loss
was down to MXN142 million from MXN375 million.

ICA's shareholders recently agreed to a capital increase of
MXN2.5 billion as part of a restructuring aimed at financing new
projects. Local financing group Inbursa acquired a 24% share in
ICA, majority-owned by Mexican entrepreneur Carlos Slim, as a
result of the transaction.

ICA is involved in infrastructure works and participates in
contracts to manage water distribution and waste disposal.


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P E R U
=======


PAN AMERICAN: Announces $55M Common Share Financing
---------------------------------------------------
PAN AMERICAN SILVER CORP. (NASDAQ: PAAS; TSX: PAA) announced
Friday that an institutional investor has agreed to purchase
3,333,333 common shares of Pan American at a price of US$16.50
per share for aggregate gross proceeds of US$55 million. The
offering is subject to regulatory approvals and qualification of
the shares under a prospectus in British Columbia and Ontario.
Closing is expected on March 12, 2004.

Pan American intends to use the proceeds of this common share
financing to fund the previously announced acquisition of the
Morococha silver mine in Peru and for general corporate
purposes.

Pan American's Chairman and CEO Ross Beaty said: "By financing
the proposed Morococha mine purchase with this offering, we have
preserved the balance of our cash for Pan American's other
growth projects, such as Alamo Dorado and the Huaron mine
expansion."


                            *********


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

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Information contained herein is obtained from sources believed
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