/raid1/www/Hosts/bankrupt/TCRLA_Public/040319.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, March 19, 2004, Vol. 5, Issue 56

                            Headlines


A R G E N T I N A

ACINDAR: Schedules Shareholder Meeting For Merger Review
AOL LATIN AMERICA: Denies Internet Services Launch in Chile
CTG: May Halt Power Production
PETROBRAS ENERGIA: Updates Oil, Gas Production Figures
TRANSENER: Dolphin Fund Confirms Citilec Stake Purchase


B E R M U D A

FOSTER WHEELER: Huntsman Awards 3-Yr. Alliance Contract
LORAL SPACE: Completes North American Satellites Sale


B O L I V I A

BOLIVIA: Fitch Assigns 'B-' Rating


B R A Z I L

AES CORP.: Issues Stockholders' Annual Meeting Notice
AMBEV: Moves to Placate Disgruntled Shareholders
CFLCL: Court Rules On Special Appeals
ELETROPAULO METROPOLITANA: S&P Revises Ratings To `SD'
EMBRATEL: To Be Merged With AT&T Latin America

NET SERVICOS: Capital Structure Leads to Larger 4Q03 Loss
NET SERVICOS: Nears Debt Agreement With Creditors
VARIG/TAM: Merger Plans March Forward


E C U A D O R

PETROECUADOR: Private Pipeline Deal Anticipated Soon


M E X I C O

CONE MILLS: To Unite With Burlington Industries
CYDSA: Despite Debt Deal Future Viewed As Uncertain
DESC: Announces Preemptive Rights Offering
LUZ Y FUERZA: SME Accepts Improved Revenue Offer


P U E R T O   R I C O

CENTENNIAL COMMUNICATIONS: Narrows Net Loss in 3rd Quarter 2004


     - - - - - - - - - -


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

ACINDAR: Schedules Shareholder Meeting For Merger Review
--------------------------------------------------------
Argentine steel company Acindar Industria Argentina de Aceros SA
(ACIN.BA) scheduled an extraordinary shareholders meeting for
April 19, reports Dow Jones. The purpose of the meeting is to
discuss a "merger by absorption" with one of its holdings. In a
filing to the Buenos Aires stock exchange Wednesday, Acindar
said the unit under consideration for absorption is Abemex SA,
whose full name is Acindar Belgo Mineira Exportadora.

Abemex was formed by Acindar and Brazilian steel conglomerate
Belgo Mineira, which owns a 20.5% stake in Acindar, in 2001 to
coordinate exports for both companies.

Belgo-Mineira holds a 60% share in Abemex while Acindar controls
the remaining 40%. The export unit is based in Argentina.

CONTACT:  ACINDAR INDUSTRIA ARGENTINA DE ACEROS SA
          2739 Estanislao Zeballos Beccar
          Buenos Aires
          Argentina B1643AGY
          Phone: +54 11 4719 8500
          Fax: +54 11 4719 8501
          Home Page: http://www.acindar.ar.com

          Jose I. Giraudo, Investor Relations Manager
          Tel: (54 11) 4719 8674
          Andrea Dala, Investor Relations Officer
          Tel: (54 11) 4719 8672


AOL LATIN AMERICA: Denies Internet Services Launch in Chile
-----------------------------------------------------------
Regional Internet service provider (ISP) America Online Latin
America (Nasdaq: AOLA) is not preparing to launch Chilean
operations, belying earlier comments made by shareholder Gustavo
Cisneros, reports Business News Americas. In an earlier report,
Chile's El Diario cited Cisneros as saying that AOL would set up
operations in Chile in the first quarter, which ends March 1.
Cisneros, who holds a seat on AOLA's board of directors, said
the ISP's entry is due to Chile's strong economy.

"Chile is an interesting market, with high purchasing power, so
I believe it can be a good Internet business," Cisneros was
quoted as saying.

However, AOLA has no plans to enter Chile soon, although it is
not ruling out the possibility the country may set up operations
at a later date, an AOLA spokesperson said.

America Online Latin America, Inc. (Nasdaq:AOLA) is the
exclusive provider of AOL-branded services in Latin America and
has become one of the leading Internet and interactive services
providers in the region. AOL Latin America launched its first
service, America Online Brazil, in November 1999. America
Online, Inc., a wholly owned subsidiary of Time Warner Inc.
(NYSE:TWX), and the Cisneros Group of Companies, are AOLA's
principal stockholders. Banco Itau, a leading Brazilian bank, is
also a minority stockholder of AOL Latin America.

CONTACT:  America Online Latin America, Inc.
          Fort Lauderdale
          Monique Skruzny
          Phone: 954/689-3119
          Email: aolairr@aol.com


CTG: May Halt Power Production
------------------------------
Argentine power supplier Central Termica Guemes SA (CTG.YY)
indicated to the official wholesale power market coordinator
that it may have to cease power production, reports Dow Jones.
CTG supplies the country's northeastern region with power and is
highly dependent on gas from Salta province.

In a letter to the quasi-official market coordinator company,
known by its Spanish acronym Cammesa, CTG noted that it had
encountered unsatisfactory replies to requests it had recently
made to suppliers of natural gas to provide fuel for its
generators. It called on authorities to permit generators to
charge a higher spot price for their power, one that would allow
the market to recognize the higher real cost that some are
having to pay for gas.

"In every case in which there existed available volumes of gas,
the prices offered exceeded the prices recognized for generators
for this fuel source, which will make it impossible for us to
generate electricity," the Company said in a March 8 letter,
which was obtained by Dow Jones Newswires. "The firm can't be in
conditions at which it functions at a loss."

"Faced with this situation, we are presented with the
incoherence of not recognizing the higher price that generators
effectively have to pay to obtain natural gas," the Company
said. It exhorted Cammesa to "take the necessary measures to
avoid situations that provoke problems in the power market -
which will pay a higher cost and will count on a lower
availability of equipment - and for the generators."

CTG is 60% owned by local company Powerco, 30% state-owned, and
10% owned by its employees.

CONTACT:  Central Termica Guemes S.A.
          Avenida Leandro N Alam 822
          Piso 12
          Ciudad Autonoma de Buenos Aires C1001AAQ
          ARGENTINA
          Tel. +54 4311-6064/6065/6066


PETROBRAS ENERGIA: Updates Oil, Gas Production Figures
------------------------------------------------------
Petrobras Energia Participaciones S.A. (Buenos Aires: PBE,
NYSE:PZE), controlling company with a 98.21% stake in Petrobras
Energia S.A. (Buenos Aires: PESA), announces Petrobras Energia
S.A.'s oil and gas average production for February 2004.

Oil & Gas Average Production (*)
(thousands of boe/day)
                                 Feb-04             Feb-03

- Oil Argentina                   52,8               58,1
- Oil Venezuela                   46,6               34,5
- Oil Peru                        10,8               11,3
- Oil Bolivia                      1,8                1,4
- Oil Ecuador                      5,9                1,6
Total Oil Production             117,9              106,9

- Gas Argentina                   35,6               32,9
- Gas Venezuela                    4,3                2,9
- Gas Peru                         1,3                0,8
- Gas Bolivia                      6,0                6,5
Total Gas Production              47,2               43,1
Total Oil & Gas Production       165,1              150,0
(*) 3.1 thousands of BOE/day ffor 2004 and 2003 respectively
from nonconsolidated operations


TRANSENER: Dolphin Fund Confirms Citilec Stake Purchase
-------------------------------------------------------
Dolphin Fund Management has taken a majority stake in the
holding company of electricity transporter Transener SA
(TRAN.BA), the Argentine investment group confirmed Wednesday.
Citing a press statement issued by Dolphin, Dow Jones reports
that the investment fund bought a 42.493% stake in Citelec,
Transener's holding company, from British company National Grid.
Dolphin spent US$14 million on the acquisition, which was
completed Tuesday. The fund had already bought a stake of 7.52%
in Citelec from a private equity fund called The Argentine
Investment Company, or Taico. Dolphin's share in Citelec is now
just more than 50%.

However, in a filing to the local stock exchange Wednesday,
Transener said it has not been notified of any modification in
the shareholding of Citelec SA. The company was responding to a
request from Argentine securities regulators to clarify the
media reports that had been circulating.

In its statement, Dolphin said the transaction is subject to a
"right of preference" of the other Citelec shareholder, as well
as approval from Argentine government regulators.

Citelec holds a 65% stake in Transener, Argentina's leading
transporter of high voltage electricity. Its other shareholder
is Petrobras Energia (PECO.BA), the Argentine oil and gas
company formerly known as Perez Companc before it was taken over
by Brazilian energy giant Petroleo Brasileiro SA (PBR), or
Petrobras, in 2003. When Petrobras bought Perez Companc, the
Brazilian company agreed to divest its stake in Transener
holding to soothe the Argentine government's concerns of an
important power company passing into foreign hands. Petrobras
Energia has a right of refusal and can match the Dolphin offer.

Petrobras Energia and Petrobras hasn't yet said whether it will
exercise this right, though Dolphin appears confident that its
acquisition will be completed successfully because "the
Brazilians were publicly committed to sell their part in
Transener when they bought Pecom," the statement said.



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

FOSTER WHEELER: Huntsman Awards 3-Yr. Alliance Contract
-------------------------------------------------------
Foster Wheeler Ltd. (OTCBB: FWLRF) announced Wednesday that its
subsidiary, Foster Wheeler Energy Limited, has been selected by
Huntsman Petrochemicals (UK) Ltd as their Project, Design and
Technical Services Alliance Partner for a period of three years
for the Wilton and North Tees sites in the north east of
England. These facilities comprise the assets of Huntsman's
olefins, aromatics and polyurethanes businesses.

Under the scope of the contract, Foster Wheeler will provide
front-end engineering, project management and detailed
engineering services and plant technical support, with options
for procurement and construction management services. The
Alliance will be managed from Foster Wheeler's Teesside
Operations at Middlesbrough, close to both sites, with
additional specialist technical support provided from Foster
Wheeler's Reading office.

Ian Bill, chairman and chief executive of Foster Wheeler Energy
Limited, commented: "We are pleased to have been selected for
this strategically important contract and delighted to have the
opportunity to work with Huntsman for a further three years to
help them meet their business objectives.

"This type of 'plant gate' alliance, where we deliver services
locally, either at or very close to our clients' assets, with
the full and flexible support of specialists from our Reading
operations, is a very important business line for us.

"Our Teesside operations has similar alliance relationships with
a number of other multinational companies with assets in the
region. Working in such close proximity with our clients helps
us develop a much deeper understanding of their objectives, and
engenders an environment in which we can deliver continuous
improvement, including cost reduction, schedule reduction and
further step-changes in safety performance."

Paul Booth, vice president, Huntsman Petrochemicals (UK) Ltd,
said: "Such is the importance of these sites to Huntsman's
global business, that it was vital that we selected a partner to
assist us in finding ways to run our manufacturing sites more
efficiently and cost effectively. We were already delighted with
the standard of work undertaken by Foster Wheeler for us in the
past, and we look forward to further developing our partnership
in the future."

About Foster Wheeler

Foster Wheeler Ltd. is a global company offering, through its
subsidiaries, a broad range of design, engineering,
construction, manufacturing, project development and management,
research and plant operation services. Foster Wheeler serves the
refining, oil and gas, petrochemical, chemicals, power,
pharmaceuticals, biotechnology and healthcare industries. The
corporation is based in Hamilton, Bermuda, and its operational
headquarters are in Clinton, New Jersey, USA.

The combined Huntsman companies constitute the world's largest
privately held chemical company. The operating companies
manufacture basic products for a variety of global industries
including chemicals, plastics, automotive, aviation, footwear,
paints and coatings, construction, technology, agriculture,
health care, textiles, detergent, personal care, furniture,
appliances and packaging. Originally known for pioneering
innovations in packaging, and later, rapid and integrated growth
in petrochemicals, Huntsman-held companies today have more than
15,000 employees, operations in 30 countries and annual revenues
of approximately $9 billion.

CONTACT:  FOSTER WHEELER LTD.
          Media Contact:
          Richard Tauberman, 908-730-4444
          Other Inquiries:
          908-730-4000

Web site: http://www.fwc.com


LORAL SPACE: Completes North American Satellites Sale
-----------------------------------------------------
Loral Space & Communications (OTCBB: LRLSQ) announced Wednesday
that it has completed its previously announced transactions with
Intelsat yielding $1.027 billion, consisting of $977 million for
Loral's North American fleet and related assets, after
adjustments, and a $50 million deposit for the construction of a
new Intelsat satellite to be built by Loral's manufacturing
unit, Space Systems/Loral (SS/L), of Palo Alto, Calif.  The
completion of the Intelsat transactions represents the
achievement of a major milestone in Loral's plan for
reorganization under Chapter 11.

Proceeds from the transaction will be used to pay in full
Loral's $967 million of outstanding secured bank debt, nearly
half of the company's total of $2.0 billion in principal debt
obligations.

Announced in July, the agreement with Intelsat provides for the
sale of the in-orbit Telstar satellites 5, 6, 7 and 13, as well
as Telstar 8, which is scheduled to be launched in the third
quarter of 2004. The agreement also includes rights to the 77
degrees West longitude orbital slot, formerly occupied by
Telstar 4.

Loral intends to reorganize around its remaining satellite
services fleet and manufacturing business. Loral Skynet's
satellite services fleet currently comprises four international
satellites, with an additional satellite, Telstar 18, scheduled
for launch in mid-2004. SS/L received orders in late 2003 for
the construction of four new satellites - one each for Intelsat
and PanAmSat Corporation and two for DIRECTV, Inc. As of
December 31, 2003, Loral's external backlog for its remaining
businesses totaled approximately $1.2 billion excluding
approximately $240 million associated with the new manufacturing
orders that were booked in the first quarter of 2004.

Loral Space & Communications is a satellite communications
company. It owns and operates a fleet of telecommunications
satellites used to broadcast video entertainment programming,
and for broadband data transmission, Internet services and other
value-added communications services. Loral also is a world-class
leader in the design and manufacture of satellites and satellite
systems for commercial and government applications including
direct-to-home television, broadband communications, wireless
telephony, weather monitoring and air traffic management.

CONTACT:  Jeanette Clonan
          John McCarthy
          (212) 697-1105

Web site: http://www.loral.com



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

BOLIVIA: Fitch Assigns 'B-' Rating
----------------------------------
Fitch Ratings, the international rating agency, assigned a 'B-'
rating to the long-term foreign and local currency obligations
of Bolivia. The Rating Outlook is Stable. Bolivia's ratings
balance sustained progress in implementing sound macroeconomic
and structural policies since 1985 against the country's social
and political instability, high public sector and external debt
burdens, as well as vulnerabilities to external shocks.
Significant debt relief under the enhanced framework of the
Heavily Indebted Poor Countries Initiative (HIPC) as well as
continued multilateral and bilateral support have been
forthcoming due to reform efforts.

Nevertheless, the increasing cost of pension reform and other
fiscal pressures have led to growth in domestic debt and non-
concessional external debt, which has resulted in a higher
overall debt burden in spite of HIPC relief. Fitch is also
concerned that lingering financial system weaknesses and heavy
social needs could result in additional public finance
pressures.

Social and political turmoil in recent years has pressured the
fiscal accounts, but the authorities' ability to provide further
economic stimulus with the adoption of counter-cyclical policies
is constrained by its efforts to adhere to monetary and fiscal
targets set out in the International Monetary Fund's Stand-by
Arrangement (SBA).

The non-financial public sector deficit increased to 8% of GDP
in 2003, causing the authorities to revise the deficit target
under the SBA various times last year. Although pensions
accounted for about 63% of the deficit, the remaining increase
in the deficit reflected lower than expected revenues due to
weak economic performance and higher social expenditures, in
part to relieve ongoing domestic pressures. The government is
committed to reducing the deficit to 6.8% of GDP this year with
revenue enhancing and expenditure reduction measures. The goal
is to protect poverty alleviation expenditures while reducing
other operating costs.

Fitch estimates that the government's financing needs will reach
18.8% of GDP in 2004, of which most of the funding sources are
already identified. The remaining financing gap will most likely
be secured with non-inflationary sources of domestic financing
and grants. The international community has been supportive of
Bolivia and absent any radical changes in policy, this source of
financing should remain stable.

Another factor constraining Bolivia's rating is its high level
of external debt. Gross external debt reached an estimated 79.3%
of GDP and 266.6% of current receipts (CXR) by 2003. This
compares with a median of 64.2% of GDP and 156.2% of CXR for
similarly rated peers. Achieving a sustainable level of debt
going forward is very dependent on Bolivia's ability to complete
various gas export projects as well as to tap other natural
resources. Nevertheless, the future of any gas export project
will depend on the results of the national referendum planned
for later this year. If the referendum to export gas fails this
could put Bolivia's export and economic growth potential at risk
and lead to unsustainable levels of debt over the long-term.

Although Fitch believes the IMF will be flexible with Bolivia
given the government's continued commitment to structural
reform, the political and social situation remains fragile.
President Carlos Mesa faces considerable challenges in building
consensus for his economic program and a timely decision on the
port of exit for the Pacific LNG pipeline project. A successful
fiscal adjustment, a positive outcome on the referendum to
export gas, as well as a calming of social and political
tensions, would be positive for Bolivia's creditworthiness.

CONTACT: Theresa Paiz Fredel +1-212-908-0534, New York
         Roger M. Scher +1-212-908-0240, New York

MEDIA RELATIONS: James Jockle +1-212-908-0547, New York



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

AES CORP.: Issues Stockholders' Annual Meeting Notice
-----------------------------------------------------

    NOTICE OF 2004 ANNUAL MEETING OF STOCKHOLDERS
       TO BE HELD ON WEDNESDAY APRIL 28, 2004

March 15, 2004

TO THE HOLDERS OF COMMON STOCK OF THE AES CORPORATION:

         The 2004 Annual Meeting of Stockholders of The AES
Corporation will be held on Wednesday, April 28, 2004, at 9:30
a.m. at the Company's corporate offices at 1001 North 19th
Street, Arlington, Virginia. Doors to the meeting will open at
8:30 a.m.


The meeting will be conducted:

1. To elect a board of 12 directors;

2. To consider and vote on a proposal to ratify the appointment
of Deloitte & Touche LLP as independent auditors of the Company
for the year 2004 (approved by the Board of Directors, and set
forth in the following Proxy Statement);

         And, to transact such other business as may properly
come before the meeting.

         Stockholders of record at the close of business on
March 3, 2004 will be entitled to notice of and to vote at this
meeting.

Brian A. Miller

Vice President, Deputy General Counsel and Secretary


AMBEV: Moves to Placate Disgruntled Shareholders
------------------------------------------------
Brazil's Companhia da Bebidas das Americas (ABV) explained its
decision to tie up with Belgium's Interbrew, as minority
shareholders continue to rail against the deal after watching
their preferred non-voting stock plummet since the deal was
announced. According to a Dow Jones report, AmBev's chief
financial officer, Felipe Dutra, told the minority shareholders
that the deal is better for AmBev than they seem to think.

Speaking to disgruntled minority shareholders late Tuesday,
Dutra said the deal will generate US$2.5 billion in synergies as
AmBev incorporates Interbrew's Canadian brewer Labatt.

Dutra brushed aside looming questions about whether a lawsuit
filed by Mexican beverage giant Femsa (FMX) might block all or
part of the tie-up.

In an US$11-billion deal unveiled March 3, Interbrew agreed to
give AmBev Canada's Labatt, 70% of Labatt USA and 30% of Mexican
brewer Femsa Cerveza in exchange for a 57% controlling stake in
AmBev. Mexico's Femsa, which owns the remainder of Femsa Cerveza
and Labatt USA, was not consulted on the deal.

In a U.S. court filing Friday, Femsa challenged Interbrew's
right to sell AmBev 70% of Labatt USA, which distributes both
Labatt and Femsa beers in the U.S. Analysts say the tough stance
suggests Femsa might also want to buy back Interbrew's share of
Femsa Cerveza, which it appears allowed to do under its contract
with Interbrew.

Dutra said shareholders won't be hurt if AmBev is blocked from
acquiring Femsa Cerveza and Labatt USA.

"The effect would be nil since we wouldn't pay anything for the
stakes," he said.


CFLCL: Court Rules On Special Appeals
-------------------------------------
Companhia Forca e Luz Cataguazes-Leopoldina (the "Company")
announced March 16, 2004 that the 18th Rio de Janeiro Civil
Court unanimously ruled that the following special appeals are
legally justified:

- Interlocutory Appeal 2003.002.22451 lodged by the Company
against Fondelec Essential Services Growth Fund L.P. and The
Latin America Energy & Electricity Fund I, L.P.

- Interlocutory Appeal 2004.002.01238 lodged by the Company's
direct holding company, Gipar S.A. against Fondelec Essential
Services Growth Fund L.P. and The Latin America Energy &
Electricity Fund I, LP

- Interlocutory Appeal 2004.002.01240 lodged by the Company
against Fondelec Essential Services Growth Fund L.P. and The
Latin America Energy & Electricity Fund I, L.P.

As a result of these rulings, the effectiveness of the
resolutions adopted at the Extraordinary Shareholders' Meeting
held by the Company on December 09, 2003 has been fully re-
established.


ELETROPAULO METROPOLITANA: S&P Revises Ratings To `SD'
------------------------------------------------------
Standard & Poor's Ratings Services revised Wednesday its local
and foreign currency ratings on Eletropaulo Metropolitana
Eletricidade de Sao Paulo S.A. (Eletropaulo) to 'SD' (selective
default) from 'D' in its global scale, after the conclusion of
Eletropaulo's BrR2.3 billion debt restructuring that began Sept.
30, 2003. The corporate credit rating assigned on the Brazil
National Scale was also revised to 'SD' from 'D', and the 'brCC'
rating on Eletropaulo's debentures issue was affirmed.

Eletropaulo is still analyzing alternatives to resolve the US$2
million of the US$100 million euro commercial paper transaction
due in December 2002, which is the company's only debt still in
default. Considering that Eletropaulo showed cash holdings of
some BrR450 million at fiscal year end 2003, this pending debt
poses no cash flow problem. According to Eletropaulo, the length
of time needed to resolve this issue relates to the difficulties
to track and reach those defaulted investors, as the Commercial
Paper market is largely spread out.

In the second semester of 2002, when a liquidity crunch in the
Brazilian bank and capital markets coincided with a huge
concentration of Eletropaulo debt maturities, the company began
wide debt renegotiations with creditors aimed at better matching
amortization schedules with its cash generation capacity. The
company has just announced the conclusion of its latest
renegotiation involving BrR2.3 billion in short-term debt, which
allowed Eletropaulo to convert to local currency some debt
denominated in foreign currency; now, about 70% of the total
debt is in local currency and the renegotiated debt amortization
schedule has been extended with final maturities in 2006, 2007,
and 2008, including a one-year grace period.

"Although Standard & Poor's recognizes that this achievement
will bring a material change in Eletropaulo's balance sheet and
will significantly reduce short-term pressure, an enhancement to
Eletropaulo's ratings is dependent on the formal resolution of
the US$2 million portion of the euro commercial paper
transaction," said credit analyst Marcelo Costa. "When
Eletropaulo resolves this last portion of its defaulted debt,
its ratings are likely to improve." Standard & Poor's will
evaluate Eletropaulo's new debt amortization schedule, as well
as expected cash contributions to be made to its holding
company, Brasiliana Energia S.A., vis-a-vis its capacity to
generate free cash flow. Brasiliana owes US$510 million to Banco
Nacional de Desenvolvimento Economico e Social (BNDES) to be
repaid in 10 years with cash contributions from its main
subsidiaries--Eletropaulo, AES Tiete S.A., and AES Uruguaiana.
In the fiscal year ended 2003, Eletropaulo posted an EBITDA of
BrR1.16 billion and a funds-from-operations to interest coverage
ratio of 1.78x, both indicators in line with Standard & Poor's
expectations.

An 'SD' rating is assigned when the obligor has selectively
defaulted on a specific issue or class of obligations but is
expected to meet payment obligations on other issues or classes
of obligations in a timely manner.


EMBRATEL: To Be Merged With AT&T Latin America
----------------------------------------------
Telefonos de Mexico (Telmex) plans to merge Brazilian telephone
company Embratel with the companies it recently acquired and
those that previously belonged to AT&T Latin America, reports El
Economista. The merger, according to Telmex, will be carried out
as soon as it completes the acquisition of Embratel. The deal
awaits approval from U.S. bankruptcy courts and the Brazilian
regulatory authorities. Telmex expects to complete this process
in three months.

Telmex bought Embratel stock from WorldCom (MCI) for US$360
million. The deal will be paid in cash. Prior to its purchase of
Embratel, Telmex bought AT&T Latin America for US$207 million.


NET SERVICOS: Capital Structure Leads to Larger 4Q03 Loss
---------------------------------------------------------
Net Servicos de Comunicacao S.A. (Nasdaq:NETC; Bovespa:PLIM4)
(Bovespa:PLIM3) (Latibex:XNET), the largest Pay-TV multi-service
operator in Latin America, an important provider of bi-
directional broadband Internet access (Virtua) and multimedia
and data communication services for corporate network, announced
Wednesday its earnings results for the fourth quarter of 2003
(4Q03). The following financial and operating information is
presented in U.S. GAAP on a consolidated basis.

Net Revenues totaled US$116.8 million in 4Q03, an increase of
6.2% in comparison to US$110.0 million presented in 3Q03. In the
year, this growth was of 1.5% totaling US$409.6 million against
the US$403.5 million presented in 2002. This growth is due to
monthly fee readjustments, the increase in broadband subscriber
base and to higher in pay-per-view sales.

EBITDA in the quarter totaled US$29.3 million, 2.5% higher than
the US$28.6 million registered in the previous quarter. This
result was due to translation gains, as in BRGAAP, there was a
small drop of 1.2%.

Operating Income (EBIT) maintained its growth trend and reached
US$12.4 million by the end of 4Q03, a 46.7% increase in
comparison to the US$8.4 million recorded in 3Q03. This result
was due to translation gains, as in Brazilian Corporate Law,
they remained stable. The factors which affected EBITDA also
explain EBIT's relative stability in the quarter.

Net loss was US$28.7 million (US$0.01 per ADS) in 4Q03, a 14.5%
increase in comparison to US$25.1 million in the previous
quarter. Even with the Company presenting operating income
growth, this loss (in Brazilian Corporate Law) is a consequence
of the capital structure, which still generates high financial
expenses. In the year, accumulated net loss was US$45.4 million,
a better result in comparison to the US$701.0 million recorded
in 2002. This improvement relates to the Company's better
operating performance, presenting a positive EBIT in 2003,
against a negative one in 2002.

Pay-TV ARPU (Total gross revenues excluding sign-in and hook-up
revenues divided by the average number of active subscribers)
increased 2.6% reaching US$32.33 in 4Q03 from US$31.50 in the
previous quarter. Broadband ARPU increased 1.9% reaching
US$22.55 in 4Q03 from US$22.12 in the previous quarter. 128Kbps
speed package in the mix, which could have had a negative impact
on ARPU.

CONTACT:  NET SERVICOS DE COMUNICACAO
          Marcio Minoru Miyakava
          Tel: +55 11 5186-2811
          E-mail: minoru@netservicos.com.br


NET SERVICOS: Nears Debt Agreement With Creditors
-------------------------------------------------
Francisco Valim, president of Net Servicos de Comunicacao,
revealed Wednesday that the pay-television company has worked
out the details of a debt restructuring agreement, Dow Jones
relates.

"The economic terms of the agreement have been concluded," Mr.
Valim said, adding that a "memorandum of understanding" will be
signed soon.

At the end of 2003, the Company's net debt amounted to BRL1.14
billion, with 59% representing dollar-indexed liabilities. An
estimated BRL1.02 billion of Net's BRL1.14 billion net debt is
included in the restructuring agreement.

A restructuring deal "may be reached in some weeks," said a
spokesman for BankBoston late Wednesday. BankBoston leads a
steering committee representing investors holding more than 80%
of Net's defaulted debt.

"Negotiations with Net have been progressing well, at an
increased pace in the last few months," the BankBoston spokesman
added.

Mr. Valim declined to disclose details of the proposed
restructuring but suggested, as in the past, that options may
include the swapping of debt for equity in Net and the
rescheduling of payments over a longer period.


VARIG/TAM: Merger Plans March Forward
-------------------------------------
Contrary to reports, Brazil's two largest airlines, Varig and
TAM are not calling off their planned merger, the Associated
Press reports. The justice ministry's secretary of economic
rights, Daniel Goldberg, announced earlier Wednesday that the
two companies had called off their planned merger and said they
would instead create a new joint venture to maintain code-
sharing flights.

However, on Wednesday evening, Roberto Muller, a spokesman for
both two companies, suggested that Golberg's remarks had been
misinterpreted. Later Wednesday, the Justice Ministry confirmed
that in a statement.

"In relation to the meeting this Wednesday morning with
representatives of Varig and TAM, the secretary of economic
rights wants to make clear that at no moment during the meeting
did the companies announced they were canceling the merger," the
statement said.

Mr. Muller said, however, for the time being the companies would
continue their code sharing operations and at the end of two
years make a final decision on whether to merge. The plan
announced a year ago would have created a single carrier with
control 70% of the domestic market.

The original merger plan was supported by the government, which
was seeking a large national carrier to better compete in the
global marketplace. But the plan faced obstacles, including a
bitter internal battle within two factions of management of
Varig.

One problem with the deal was that Varig, because of its US$1.5
billion in debt, would have ended up with minority control of
the new carrier.

However, the code-sharing arrangement between the two carriers
appeared to be producing good results.

CONTACT:      VARIG (Viacao Aerea Rio-Grandense, S.A.)
              Rua 18 de Novembro No. 800, Sao Joao
              90240-040 Porto Alegre,
              Rio Grande do Sul, Brazil
              Phone: (51) 358-7039/7040
                     (51) 358-7010/7042
              Fax: +55-51-358-7001
              Home Page: www.varig.com.br/english/
              Contacts:
              Dorival Ramos Schultz, EVP Finance and CFO
              E-mail: dorival.schultz@varig.com.br

              Investor Relations:
              Av. Almirante Silvio de Noronha,
              n  365-Bloco "B" - s/458 / Centro
              Rio de Janeiro, Brazil

              TAM
              Daniel Mandelli Martin, President
              Buenos Aires
              Tel. (54) (11) 4816-0001
              URL: www.tam.com.br



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

PETROECUADOR: Private Pipeline Deal Anticipated Soon
----------------------------------------------------
An agreement between Ecuador's state-run oil company
Petroecuador and a privately owned OCP heavy crude pipeline was
expected Wednesday, according to Dow Jones. With the agreement,
Petroecuador will be able to resume by next week exports, which
have been on hold since last Thursday when a landslide caused
three ruptures in the government-owned SOTE pipeline.

With the damage expected to take at least three weeks to repair,
Petroecuador has been forced to store its production in tanks.
With little storage capacity remaining, company officials have
said that production cuts would be likely if no deal is reached
with the OCP consortium.

But drawbacks have been cited in shipping via the OCP. The SOTE
and OCP typically handle different varieties of crude.

Petroecuador's Oriente light-sweet crude has an average American
Petroleum Institute rating of 24.3. To ship through the OCP
pipeline, it would be mixed with the heavier Napo crude
transported by the OCP, which has an API grade of 19.3. The
resulting product would have an API grade of between 21 and 23,
which presumably would cause Petroecuador to take a hit on
pricing. Heavier crudes are less expensive.

According to current contracts, for every one-point reduction in
API grade, Petroecuador would receive 15 cents less per barrel.
Buyers could also refuse to accept oil that is of a lower
quality than what was stipulated in the original contracts. In
such a scenario, Petroecuador would have to negotiate the
purchases with third parties.



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

CONE MILLS: To Unite With Burlington Industries
-----------------------------------------------
Wilbur L. Ross announced that Cone Mills, which was acquired out
of bankruptcy last Friday, would be combined with Burlington
Industries to form International Textile Group ("ITG") with
combined revenues of approximately $900 million. Mr. Ross is
Chairman of ITG, and its President and CEO is Joseph Gorga. Gary
Smith, formerly of Cone Mills, will be the new CFO of ITG. John
Bakane will remain CEO of Cone Mills Denim. Both Smith and
Bakane will report to Gorga.

Cone Mills will assume responsibility for Burlington Burlmex
denim manufacturing in Mexico. Cone Jacquards will be
consolidated with Burlington's two Jacquard operations into a
single Burlington Company, and Cone's Carlisle subsidiary also
has become part of Burlington.

Burlington House, Cone Jacquards and Carlisle will operate under
ITG's newly formed Home Furnishing Business. The company is
currently searching both internally and externally for a
President to run the newly formed group.

ITG will be the majority owner of Nano-Tex, which operates the
specialty chemical business. Burlington Apparel Fabrics, headed
by Ken Kunberger, will be combined into ITG.

All four companies will operate from a single headquarters which
will be located in Greensboro if local authorities provide the
requested incentives. Meanwhile both present headquarters are
occupied under short-term leases.

Mr. Bakane commented, "We are pleased to provide stability and
opportunities to over 1,000 manufacturing employees at Cone's
White Oak plant here in Greensboro. We look forward to working
with the City in creating an environment in which White Oak
manufacturing can continue to prosper."

Mr. Gorga said, "I look forward to blending these two companies
and strengthening the well known Cone and Burlington brands in
the marketplace. There is great opportunity to grow what each
has started and together take our business and product
strategies to the next level."

Mr. Ross added, "ITG is already a major player in the U.S. and
Mexico and intends to internationalize further. I will be going
to China next week to discuss a wide range of topics with
government and industry leaders there. If our government creates
a NAFTA-friendly Central American Free Trade Agreement and
involves the quotas contained in China's WTO accession
agreement, any international initiative would be additive to our
business rather than replacing U.S. operations."


CYDSA: Despite Debt Deal Future Viewed As Uncertain
---------------------------------------------------
Even though the recently concluded restructuring of Cydsa, S. A.
de C.V.'s bank debts for a total of more than US$190 million,
analysts are still in doubt with the Nuevo Leon-based company's
future, reports El Economista.

"It is very tight in the operating area, which is why nothing is
easy for it [Cydsa]," said Martin Gonzalez, deputy director of
analysis at brokerage Invex.

Cydsa ended 2003 with sales of MXN4.59 billion (US$417.8
million), some 4.9% more than in 2002, but still suffered a net
loss of MXN368 million (US$33.5 million). The firm's operating
losses were at MXN86.9 million (US$7.9 million), down from the
MXN203-million (US$18.5 million) loss in 2002.

Other analysts agreed that the liquidity crisis Cydsa has
endured for several years is a result of the lack of vision to
reinforce investments in production plants when competition was
not so intense.

Cydsa and its subsidiaries signed Tuesday an agreement with
creditor banks extending principal payments on US$192.6 million
of the Company's debt. The agreement establishes escalating
principal amortizations beginning on March 31, 2004, and ending
in 2011. Creditor banks signing the agreement are Banco Nacional
de Mexico, S.A.; Citibank, NA; BBVA-Bancomer, S.A.; California
Commerce Bank; and Comerica Bank.

CYDSA continues negotiations with holders of US$159 million of
Euro-Medium-Term-Notes (EMTN's).

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


DESC: Announces Preemptive Rights Offering
------------------------------------------
DESC, S.A. de C.V. (NYSE: DES; BMV: DESC) announced that the
subscription notice for exercising the preemptive rights
offering for the capital increase, which was approved at the
General Ordinary and Extraordinary Shareholders Meeting on March
8, 2004, will be published in the "Diario Oficial de la
Federaci¢n", or the offical newspaper of Mexico, as well as in
the newspapers "Reforma" and "El Economista" today, March 18,
2004.

The preemptive rights offering, which may be exercised under the
following terms:

1.  Shareholders will receive subscription rights in proportion
    to the number of shares held and must be exercised within
    fifteen calendar days from the date of publication of the
    official notice in the "Diario Oficial de la Federacion",
    meaning, from March 19, 2004 to April 2, 2004.

2.  The subscription ratio will be for the stockholders of:

    A. series "A" shares, who will receive rights to subscribe
       for two series "A" shares for every 3 series "A" shares
       they own. Fractional shares will not be issued, and
       fractions will be rounded down.

    B. series "B" shares, who will receive rights to subscribe
       to two series "B" shares for every 3 series "B" shares
       they own. Fractional shares will not be issued, and
       fractions will be rounded down.

    C. Holders of record of American Depositary Shares (ADS) as
       of March 22, 2004, who will receive rights to subscribe
       to 0.6667 (ADS) for each ADS owned, according to the
       applicable law in the United States. Fractional ADSs will
       not be issued, and fractions will be rounded down. As a
       result, holders of ADS will need to own at least two ADS
       in order to receive one whole ADS.

3.   The subscription price is Ps. 3.00 per share.

The Company also informs that the mandatory conversion of all
Series "C" shares to Series "B" shares became effective March
16, 2004. As a result of this conversion, each ADS, which
represented 20 Series "C" shares, now represents 20 Series "B"
shares.

The Company reiterates the importance of being properly informed
of this process and recommends that all shareholders contact
their respective broker, dealer, financial intermediary or legal
advisor to discuss whatever questions or doubts they may have
regarding this transaction.

DESC, S.A. de C.V. (NYSE: DES; BMV: DESC) is one of the largest
industrial groups in Mexico, with 2003 sales of approximately
US$ 2 billion and nearly 14,000 employees, which through its
subsidiaries is a leader in the Automobile Parts, Chemical, Food
and Property sectors.

This announcement does not constitute an offer of any securities
for sale, and securities may not be offered or sold in the
United States absent registration under the United States
Securities Act of 1933, as amended, or an exemption from
registration. The preemptive rights offering has not been, and
will not be, registered under the United States Securities Act
of 1933, as amended, nor under the securities laws of any
jurisdiction outside of Mexico. The preemptive rights offering
will be offered in the United States in reliance upon exemptions
from registration under the Securities Act of 1933, as amended.
The rights to subscribe for additional shares may be restricted
by applicable law in jurisdictions outside Mexico.

This preemptive rights offering is made for the securities of a
Mexican company. The offer is subject to the disclosure
requirements of a Mexican company that are different from those
of the United States.

It may be difficult for you to enforce your rights and any claim
you may have arising under the federal securities laws, since
the issuer is located in Mexico, and some or all of its officers
and directors may be residents of Mexico. You may not be able to
sue a foreign company or its officers or directors in a foreign
court for violations of the U.S. securities laws. It may be
difficult to compel a foreign company and its affiliates to
subject themselves to a U.S. court's judgment.

CONTACTS:  Marisol Vazquez Mellado
           Jorge Padilla Ezeta
           Tel: (5255) 5261-8044
           E-mail: jorge.padilla@desc.com.mx

           Maria Barona
           Melanie Carpenter
           Tel: 212-406-3692
           E-mail: desc@i-advize.com


LUZ Y FUERZA: SME Accepts Improved Revenue Offer
------------------------------------------------
The Mexican Electricity Workers Union (SME) and the electricity
company Luz y Fuerza del Centro (LyFC) reached an agreement on
the collective contract for 2004, averting a strike planned for
Wednesday midnight. The union had scheduled the strike after the
Company's first proposal, which included a 3.5% hike in salaries
and a 2% raise in transport payments and other benefits, fell
short of its expectations.

With the impending strike, LyFC improved its offer to 4.0% hike
on the salaries, 2.5% for transport expenses, 1% for housing
rent and 1% for food, which was then accepted by the SME.

Martin Esparza, secretary of the Exterior for the Small and
Medium-sized Enterprises (SME), said that there were also
partial agreements in recovery of the past due loans portfolio
and the purchase of energy from the Comision Federal de
Electricidad (CFE) by LyFC.

The new agreement, which was signed in the presence of Labor and
Energy secretaries Carlos Abascal Carranza and Felipe Calderon
Hinojosa, respectively, benefits 35,000 active workers and
17,300 pensioners.



=====================
P U E R T O   R I C O
=====================

CENTENNIAL COMMUNICATIONS: Narrows Net Loss in 3rd Quarter 2004
---------------------------------------------------------------
Centennial Communications Corp. (the "Company") (Nasdaq: CYCL)
announced Wednesday results for the quarter ended February 29,
2004. Consolidated revenues grew 14% from the same quarter last
year to $207.4 million. Net loss was $30.3 million for the third
quarter as compared to a net loss of $159.6 million for the same
quarter last year. Adjusted operating income (previously
referred to as "adjusted EBITDA") was $81.3 million, a 19%
increase from the same quarter last year. Adjusted operating
income is net income (loss) before interest, taxes,
depreciation, amortization, loss (gain) on disposition of
assets, minority interest in (income) loss of subsidiaries,
income from equity investments, loss on impairment of assets,
other income (expense) and special non-cash charge. Please refer
to Exhibit A -- "Non-GAAP Financial Measures."

The Company's wireless subscribers at February 29, 2004 were
1,027,500, compared to 929,700 on the same date last year, an
increase of 11%. U.S. Wireless subscribers increased by 1,600
from the quarter ended November 30, 2003, aided by national rate
plans. Caribbean Wireless subscribers increased 28,700 as
compared to the quarter ended November 30, 2003, due primarily
to strong growth of postpaid subscribers. Caribbean Broadband
switched access lines reached 48,100 and dedicated access line
equivalents were 205,300 at February 29, 2004, up 21% and 15%,
respectively, from February 28, 2003. Cable television
subscribers were 73,600 at February 29, 2004, down 4,900 from
the same quarter last year.

"Once again this quarter we are proud to report double-digit
growth in both revenue and adjusted operating income. We are
particularly proud of the performance of our retail business in
the U.S., which generated service revenue growth of 17%. This
growth resulted from a 3% increase in subscribers and from an
improvement in service revenue per subscriber. Our Caribbean
operations also posted noteworthy results; revenue grew by 20%
and adjusted operating income by 31% versus the same quarter
last year." said Michael J. Small, chief executive officer.

For the quarter, U.S. Wireless revenues were $90.3 million and
U.S. Wireless adjusted operating income was $37.2 million. U.S.
Wireless adjusted operating income increased by 8% from the same
quarter last year despite reduced roaming revenue of
approximately $5.4 million. Service revenue per subscriber
increased to $44 for the three months ended February 29, 2004
from $39 for the same period in the prior year, primarily due to
the introduction of national rate plans. Service revenue is
total revenue excluding roaming revenue and equipment sales.

For the quarter, total Caribbean (consisting of the Caribbean
Wireless and Caribbean Broadband segments) revenues were $117.1
million and total Caribbean adjusted operating income was $44.1
million. Total Caribbean adjusted operating income for the
quarter was up 31% from the same quarter last year. Caribbean
Wireless revenues for the quarter reached $78.0 million, an
increase of 20% from the same quarter last year. Caribbean
Wireless adjusted operating income for the quarter was $29.0
million, an increase of 21% from the same quarter last year.
Caribbean Broadband revenues for the quarter were $41.9 million
and Caribbean Broadband adjusted operating income reached $15.0
million, up 21% and 56% from the same quarter last year,
respectively.

Consolidated capital expenditures for the quarter ended February
29, 2004 were $37.6 million or 18% of revenue. Net debt at
February 29, 2004 was $1,704.9 million as compared to $1,699.7
million at February 28, 2003.

For the quarter, the Company's net loss of $30.3 million
includes a tax provision of $6.5 million, resulting from
book/tax differences and foreign taxes.

Recent Financing Activity

In February, Centennial Communications consummated refinancing
transactions consisting of a new $750 million senior secured
credit facility and a private placement of $325 million of 8
1/8% Senior Notes due 2014. The new senior secured credit
facility is comprised of a $600 million, seven-year term loan
maturing in 2011 and a $150 million, six-year revolving credit
facility maturing in 2010. The new financings extend the
weighted average maturities of the Company's long-term debt by
over two years and eliminate approximately $600 million in
scheduled amortization payments over the next four years. As a
result of these transactions, the Company's weighted average
total cost of debt has decreased from approximately 8.50% to
approximately 7.75%. Term loan borrowings under the new senior
secured credit facility, together with proceeds of the senior
notes, were used to refinance and replace the Company's existing
senior secured credit facilities; repurchase all of the
Company's outstanding unsecured subordinated notes due 2009
accruing paid-in-kind interest at a rate of 13.0%; repurchase
and/or redeem $70 million aggregate principal amount of the
Company's outstanding $370 million 10.75% senior subordinated
notes due 2008 and pay related fees and expenses.

Revised Fiscal 2004 Guidance

The Company is raising its prior guidance to reflect positive
business trends through the third quarter. We now expect
adjusted operating income to grow by a minimum of 10% in fiscal
2004 over the $295.7 million result for 2003; this revises prior
guidance of 5-10% growth in adjusted operating income. This
increased growth in adjusted operating income is expected
despite a projected reduction of approximately $25 million in
the U.S. Wireless roaming revenues in 2004 from the level
experienced in 2003. This updates prior guidance of an estimated
$20 million reduction in U.S. Wireless roaming revenues. The
Company now expects capital expenditures of approximately $135
million in fiscal 2004 versus prior guidance of approximately
$125 million. The Company has not included a reconciliation of
projected adjusted operating income since projections for some
components of such reconciliation are not possible to project at
this time.

In addition to the financial results determined in accordance
with Generally Accepted Accounting Principles ("GAAP"), this
press release contains a non-GAAP financial measure, adjusted
operating income. This non-GAAP financial measure should be
considered in addition to, but not as a substitute for, the
information prepared in accordance with GAAP. Reconciliations of
this non-GAAP financial measure to comparable GAAP measures are
provided in Exhibit A to this press release.

About Centennial

Centennial is one of the largest independent wireless
telecommunications service providers in the United States and
the Caribbean with approximately 17.3 million Net Pops and
approximately 1,027,500 wireless subscribers. Centennial's U.S.
operations have approximately 6.1 million Net Pops in small
cities and rural areas. Centennial's Caribbean integrated
communications operation owns and operates wireless licenses for
approximately 11.2 million Net Pops in Puerto Rico, the
Dominican Republic and the U.S. Virgin Islands, and provides
voice, data, video and Internet services on broadband networks
in the region. Welsh, Carson, Anderson & Stowe and an affiliate
of the Blackstone Group are controlling shareholders of
Centennial.

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

CONTACT:  Centennial Communications Corp.
          Eric S. Weinstein
          732-556-2220

Web sites: http://www.centennialwireless.com
           http://www.centennialpr.com
           http://www.centennialrd.com




                            ***********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and Oona
G. Oyangoren, Editors.

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.

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

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


* * * End of Transmission * * *