/raid1/www/Hosts/bankrupt/TCRLA_Public/040330.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Tuesday, March 30, 2004, Vol. 5, Issue 63

                            Headlines


A R G E N T I N A

A MARCOS y COMPANIA: Court Deems Bankruptcy Necessary
ASESORES EMPRESARIOS: Bankruptcy, Liquidation Schedule Set
BARCELT: Court Approves Creditor's Bankruptcy Petition
DEXER SA: Creditor's Bankruptcy Petition Proves Effective
EDERSA: Saesa 2003 Loss Increases on Stake Provision

GPCOM: Bankruptcy Process Begins By Court Order
LA PASKANA: Court Makes Bankruptcy Ruling
LAVANET: Court Rules Bankruptcy
MARITIMA AUSTRAL: Files Petition To Reorganize
MAZDA CENTER: Declared Bankrupt by Court

NETUNIVERSITARIA.COM: Bankruptcy Initiated, Liquidation Looms
PERFA: Court Declares Company Bankrupt
SEA FOOD: Reorganization Converts to Bankruptcy


B E R M U D A

TYCO INTERNATIONAL: Healthcare Unit To Appeal Patent Verdict


B R A Z I L

AMBEV: Defends Preferred Stock Buyback Program
GERDAU: Unit Reaches Agreement With United Steelworkers
PARMALAT: Issues Principle Creditors' Meeting Results
PARMALAT: Legal Woes Set to Hamper LatAm Sale
*IMF Completes Sixth Review of Brazil's Stand-By Arrangement


C H I L E

AES GENER: Cachagua Announces New Schedule for Stake Offer


E C U A D O R

PETROECUADOR: Extends Bidding Deadline for 45 Days


J A M A I C A

JPSCO: Minister Explains $446M Additional Payment to Mirant


M E X I C O

GRUPO MEXICO: Ferromex Repays Outstanding Bank Loan


V E N E Z U E L A

PDVSA: Moves to Resolve Energy Concerns
PDVSA: Slams SAIC's Claim to OPIC


     - - - - - - - - - -


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

A MARCOS y COMPANIA: Court Deems Bankruptcy Necessary
-----------------------------------------------------
A Marcos y Compania S.A., which was undergoing a reorganization,
will now enter bankruptcy on orders from Buenos Aires Court No.
14, reports Infobae. Working with Clerk No. 27, the court
assigned Estudio Sastre, Lostao & Romano as the Company's
receiver.

The credit verification process will be done "por via
incidental", says the report. The court orders the receiver to
submit the individual reports on August 2, 2004 and the general
report on September 14, 2004.

CONTACT:   Estudio Sastre, Lostao & Romano, Receiver
           Tucuman 1539
           Buenos Aires


ASESORES EMPRESARIOS: Bankruptcy, Liquidation Schedule Set
----------------------------------------------------------
Judge Gonzalez of Court No. 8 declared Asesores Empresarios SA
"Quiebra," reports La Nacion. The Company will undergo the
bankruptcy process, which will end with the liquidation of its
assets to repay creditors. The court's ruling comes in approval
of a bankruptcy petition filed by a company creditor, Ricardo
Amalia, for nonpayment of US$12,448.20 in debts.

Working with Clerk No. 15, Dr. Lezaeta, the court assigned
Servio Leonardo Novick as receiver, whose duties include the
verification of creditors' claims until May 17 and the
preparation of the individual, as well as the general reports.

CONTACT: Asesores Empresarios SA
         Tucuman 834, piso 5ø "21"

         Servio Leonardo Novick, Receiver
         Libertad 359, piso 4ø "D"


BARCELT: Court Approves Creditor's Bankruptcy Petition
------------------------------------------------------
Judge Gonzalez of Court No. 8 declared construction company
Barcelt SA "Quiebra," reports La Nacion. The Company will
undergo the bankruptcy process, which will end with the
liquidation of its assets to repay creditors. The court's ruling
comes in approval of a bankruptcy petition filed by a company
creditor, Jorge Brignardello, for nonpayment of US$20,000.00 in
debts.

Working with Clerk No. 16, Dr. Saravia, the court assigned
Santos Ernesto Luparelli as receiver, whose duties include the
verification of creditors' claims until May 28 and the
preparation of the individual, as well as the general reports.

CONTACT:  Barcelt SA
          Mario Bravo 1080

          Santos Ernesto Luparelli, Receiver
          Paraguay 2067, piso 1ø "B"


DEXER SA: Creditor's Bankruptcy Petition Proves Effective
---------------------------------------------------------
Construction company Dexer SA will now undergo bankruptcy after
Judge Gonzalez of Court No. 8 declared it "Quiebra." The court's
decision, according to La Nacion, grants a petition filed by a
creditor of the Company, Virginia Gonzalez, to whom the Company
owes US$7,133.35 in unpaid debts.

The court, assisted by Clerk No. 15, Dr. Lezaeta, designated
Silvia Susana Perez Lion to be the Company's receiver, who will
verify creditors' claims until June 16. The Company's case will
close with the liquidation of its assets to repay its creditors.

CONTACT:  Dexer SA
          Avenida La Plata 315, piso 8ø "A"

          Silvia Susana Perez Leon, Receiver
          Avenida Cordoba 850, piso 7ø "M"


EDERSA: Saesa 2003 Loss Increases on Stake Provision
----------------------------------------------------
Chilean distributor Saesa ended 2003 with a loss of CLP25
billion, higher than the previous year's CLP16.1 billion,
reports Business News Americas. The Company attributed the
increase to a CLP32.4-billion provision for the sale of its 50%
stake in Argentina's Rio Negro provincial distributor Edersa.

"Given the economic and political situation in Argentina, we are
not interested in doing business there and we decided it's
better to grit our teeth and get out," Saesa's CEO Jorge Brahm
said Friday.

In a previous report, Business News Americas said that Saesa has
an agreement to sell its Edersa stake to the Camuzzi group,
which owns the other half of the Argentine company. The deal is
pending regulatory approval.

Brahm would not comment on what the sale is worth but said the
transaction should be completed in the first half of 2004.


GPCOM: Bankruptcy Process Begins By Court Order
-----------------------------------------------
Buenos Aires Court No. 23 declared Gpcom S.R.L. "Quiebra,"
reports Infobae. The declaration signals the Company to proceed
with the bankruptcy process, which will close with the
liquidation of its assets.

The court, assisted by Clerk No. 46, appointed Mr. Mauricio
Federico Nudelman as receiver who will authenticate proofs of
claim until April 12, 2004. Afterwards, the receiver will
prepare the individual reports based on the results of the
authentication and then submit these reports to the court on May
26, 2004. After these results are processed in court, the
receiver will then submit the general report on July 7, 2004.

CONTACT:  Gpcom S.R.L.
          Tucuman 927
          Buenos Aires

          Mauricio Federico Nudelman, Receiver
          Lavalle 2024
          Buenos Aires


LA PASKANA: Court Makes Bankruptcy Ruling
-----------------------------------------
La Paskana S.R.L. will now enter bankruptcy after Buenos Aires
Court No. 24 declared it "Quiebra." With assistance from Clerk
No. 48, the court named Mr. Eduardo Miguel Echaide, as receiver,
who will verify creditors' claims until April 21, 2004.

Following claims verification, Mr. Echaide will submit the
individual reports, which were prepared based on the
verification results, to the court on June 3, 2004. The general
report is due for submission on July 16, 2004.

The Company's bankruptcy case will close with the liquidation of
its assets to pay its creditors.

CONTACT:  Eduardo Miguel Echaide, Receiver
          Sanchez de Loria 155
          Buenos Aires


LAVANET: Court Rules Bankruptcy
-------------------------------
Buenos Aires Court No. 14 declared local company Lavanet S.A.
"Quiebra," reports Argentine news source Infobae. Assisted by
Clerk No. 27, the court placed the Company in the hands of the
appointed receiver Ms. Silvia Beatriz Cusel.

Ms. Cusel will verify creditors' claims until May 28, 2004 and
submit the individual reports on July 12, 2004. These reports
contain the results of the credit verification process, which is
done to determine the nature and amount of the Company's debts.

The general report, to be prepared after the individual reports
are processed in court, must be submitted on September 7, 2004.

The Company's assets will be liquidated at the end of the
bankruptcy process to repay creditors. Payment distribution will
be based on the results of the credit verification.

CONTACT:  Silvia Beatriz Cusel, Receiver
          Trelles 2350
          Buenos Aires


MARITIMA AUSTRAL: Files Petition To Reorganize
----------------------------------------------
Tucuman fishing company Maritima Austral SA filed a "Concurso
Preventivo" motion, reports La Nacion. The Company is seeking to
reorganize its finances following cessation of debt payments
since October 15 last year. The Company's case is now pending
before Court No. 8 under Judge Gonzalez, who is assisted by Dr.
Lezaeta, Clerk No. 15.

CONTACT:  Maritima Austral SA
          Tucuman 540, 24ø "C"


MAZDA CENTER: Declared Bankrupt by Court
----------------------------------------
Buenos Aires Court No. 24 declared Mazda Center S.A. "Quiebra,"
reports Infobae. Clerk No. 48 assists the court on the case,
which will close with the liquidation of the Company's assets to
repay creditors. Ms. Haydee M Kravetz, who has been appointed as
receiver, will verify creditors' claims until May 12, 2004 and
then prepare the individual reports based on the results of the
verification process.

The individual reports will then be submitted to the court on
June 28, 2004, followed by the general report September 1, 2004.

CONTACT:  Haydee M Kravetz
          Lenadro N Alem 651
          Buenos Aires


NETUNIVERSITARIA.COM: Bankruptcy Initiated, Liquidation Looms
-------------------------------------------------------------
Netuniversitaria.com SA enters bankruptcy after Judge Gonzalez
of Court No. 8 approved a bankruptcy motion field by the
Company's creditor, OSDE Organizacion de Servicios Directos
Empresarios, reports La Nacion. The Company's failure to pay
US$5,621.49 in debts prompted the creditor to file the petition.

Working with Clerk, No. 15, Dr. Lezaeta, the court assigned Mr.
Juan Angel Giannazo as receiver for the bankruptcy process. The
receiver will authenticate creditors' proofs of claim until June
16, 2004.

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

CONTACT:  Netuniversitaria.Com SA
          Avenida Belgrano 430, piso 4ø

          Juan Angel Giannazo, Receiver
          Avenida de Mayo 1370, piso 8ø, oficina "199"


PERFA: Court Declares Company Bankrupt
--------------------------------------
Buenos Aires Court No. 13 declared local company Perfa S.A.
"Quiebra," reports Infobae. The court, assisted by Clerk No. 26,
assigned Mr. Luis Humberto Chelala as receiver, who will examine
and authenticate creditors' claims until April 20, 2004. The
submission of the individual and general reports will be set
shortly. The Company's bankruptcy case will close with the
liquidation of its assets to repay creditors.

CONTACT:  Luis Humberto Chelala, Receiver
          Av Corrientes 2335
          Buenos Aires


SEA FOOD: Reorganization Converts to Bankruptcy
-----------------------------------------------
Mar del Plata Sea Food S.A., which was undergoing a
reorganization, entered bankruptcy on orders from Court No. 13
of Tribunal civil y comercial de Mar del Plata. Infobae relates
that the credit verification process will be conducted "por via
incidental". The Company's receiver is Mr. Manuel Eduardo Giles.

CONTACT:  Mar del Plata Sea Food S.A.
          San Salvador 4763/95
          Mar del Plata

          Manuel Eduardo Giles, Receiver
          14 de Julio 1253
          Mar del Plata



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

TYCO INTERNATIONAL: Healthcare Unit To Appeal Patent Verdict
------------------------------------------------------------
Tyco International Ltd. (NYSE: TYC; BSX: TYC) announced Friday
that its Tyco Healthcare business unit Nellcor, market leader
and global innovator of intelligent pulse oximetry solutions,
will challenge the jury's decisions of willful patent
infringement and a $134.5 million damage award in post-trial
motions, and, if necessary, in an appeal to the Court of Appeals
for the Federal Circuit (CAFC). The damage award may be subject
to a potential increase by the trial court.

Nellcor will ask the court to rule that its 4th and 5th
generation pulse oximetry technologies do not infringe patents
of Masimo Corp., Irvine, Calif., that cover its SETr signal
processing technology. Nellcor's and Masimo's technologies are
used in medical devices, often in hospitals, to monitor the
oxygen level in blood.

This is not the first time Masimo has asserted patent
infringement claims against Nellcor. In October 2000 and August
2001, two federal courts (including the CAFC) ruled that Nellcor
technology involved in the present case did not infringe
Masimo's adaptive filter SET patent, USP 6,036,642. The CAFC
held that Nellcor's technology was "truly different" (18 Fed.
Appx. 852, 857 (Fed. Cir. 2001)). The jury in the present case
was not allowed to consider those prior rulings.

"The jury decision is only one step in the legal process," said
David Sell, president, Nellcor. "Once again, we are prepared to
present our position, if necessary, before the CAFC on a Masimo
patent claim."

Nellcor, a part of Tyco Healthcare, is dedicated to developing
innovative, clinically relevant medical products with an
emphasis on noninvasive patient safety monitoring and
respiratory care. Nellcor is the world's foremost supplier of
pulse oximetry and airway management products.

Tyco International Ltd. is a diversified manufacturing and
service company. Tyco is the world's leading provider of both
electronic security services and fire protection services; the
world's leading supplier of passive electronic components; a
world leader in the medical products industry; and the world's
leading manufacturer of industrial valves and controls. Tyco
also holds a strong leadership position in plastics and
adhesives. Tyco operates in more than 100 countries and had
fiscal 2003 revenues from continuing operations of approximately
$37 billion.

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



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

AMBEV: Defends Preferred Stock Buyback Program
----------------------------------------------
Brazilian beverage company Ambev is carrying out a stock buyback
program, reports Valor Economico. The stock buyback's limit is
BRL500 million and may involve 1.4 billion preferred stocks in a
period of 60 days, to be renewed for another 60 days. The number
of shares equals 6.58% of the existing preferred equity on the
market. Ambev does not plan a buyback of common shares and will
make a public offer to the tag along holders.

Word on the street suggests that the stock buyback program is
part of Ambev's efforts to increase the value of its preferred
papers, which have been falling since the announcement of the
merger with the Belgian brewery, Interbrew.

However, the group has denied this, arguing that the program is
part of a management policy. The Brazilian group bought back 310
million common and preferred stocks in 2003. Bradesco, Itau,
Santander, Chase Fleming, Merril Lynch, UBS and Deutsche Bank
were authorized by Ambev to buy back its stocks.


GERDAU: Unit Reaches Agreement With United Steelworkers
-------------------------------------------------------
Gerdau Ameristeel reached an agreement with United Steelworkers
members at the company's Whitby, Ontario, steel mill on a new,
three-year contract. The new contract extends through February
28, 2007, and covers approximately 400 employees at the Whitby
steel mill. Employees voted on and approved the ratification of
the agreement Thursday.

"We are very pleased that we are able to continue to
successfully provide competitive wages and benefits for our
employees in Whitby," said Vice President of Human Resources Jim
S. Rogers. "The contract will allow the operations to run more
efficiently. It will also help us sustain the competitive
strength required to tackle the challenges of the steel
industry's current economic environment."

About Gerdau Ameristeel

Gerdau Ameristeel is the second largest minimill steel producer
in North America with annual manufacturing capacity of over 6.8
million tons of mill finished steel products. Through its
vertically integrated network of 11 minimills (including one
50%-owned minimill), 13 scrap recycling facilities, and 32
downstream operations, Gerdau Ameristeel primarily serves
customers in the eastern half of North America. Gerdau
Ameristeel's common shares are traded on the Toronto Stock
Exchange under the symbol GNA.TO.

CONTACT:  GERDAU AMERISTEEL
          Tom J. Landa
          Vice President & Chief Financial Officer
          5100 W. Lemon St., Suite 312
          Tampa, Florida 33609
          Phone: 813-207-2300
          Fax: 813-207-2328

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


PARMALAT: Issues Principle Creditors' Meeting Results
-----------------------------------------------------
Parmalat Finanziaria S.p.A, in Extraordinary Administration
(`Parmalat' or `the Company'), communicates that, as already
announced on 16th March 2004 following a meeting between the
Company and the Surveillance Committee, a meeting took place
Friday between the Company and a range of its principle
creditors.

During the course of this meeting, the Company updated creditors
on the Group's situation and on the outline industrial and debt-
restructuring plan for the Parmalat Group.

The Company also provided the following indications regarding
its performance during the first two months of 2004:

(Millions of Euros)          Sales   EBITDA      EBITDA v/sales
                                                    ratios
  World                      762.6    20.9             2.7%
  Europe                     299.4    18.0             6.0%
  Italy                      228.5    14.2             6.2%
- of which Parmalat (core)    75.3     6.9             9.2%

The Financial situation of those of the Group's Italian
companies that are in Extraordinary Administration does not
currently present any particular cause for concern. Until now no
use has been made of the EUR105 million credit line that was
recently agreed with a pool of banks.

To check complete results of meeting:
http://bankrupt.com/misc/Meeting.pdf


PARMALAT: Legal Woes Set to Hamper LatAm Sale
---------------------------------------------
Legal woes are likely to hold up Italian food group Parmalat's
plan to sell a large number of its Latin American units.
Parmalat, which declared bankruptcy in December with a US$12.7
billion hole in its accounts, said it planned to sell units in
Mexico, Chile, Ecuador, Uruguay and the Dominican Republic,
while at the same time studying what to do with its Paraguay
operations.

Parmalat Brasil Industria de Alimentos was placed under
administrative control by the Brazilian courts in February.
Parmalat Friday said it was in talks with both the courts and
company administrators to evaluate its options.

In Mexico, Parmalat could also face delays of up to eight months
in selling off its local units -- the time it would take to name
a new advisor to take charge of operations, Parmalat de Mexico
director general Hugo Lara told Reuters.

"We knew that this was going to happen. I think the reason that
they took the decision was the size of the operation in Mexico
compared to other (Parmalat) operations worldwide," he added.

The unit had its accounts temporarily frozen in mid-February by
Citigroup in a move that paralyzed business activities for
several days. The accounts were later unfrozen, enabling the
unit to continue activities.

Parmalat's Chilean unit, meanwhile, has reached a legal
agreement with Bank of America, its principal creditor, which
will allow it a 90-day breathing space while it appoints a new
receiver to decide the group's future with creditors.

"At the moment, the legal conditions are not established to
carry out an immediate sale, as there is a creditors' meeting
set for May 3," said Lionel Stone, receiver for the Chile
operations.


*IMF Completes Sixth Review of Brazil's Stand-By Arrangement
------------------------------------------------------------
The Executive Board of the International Monetary Fund (IMF)
completed Friday the sixth review of Brazil's performance under
an SDR 27.4 billion (about US$40.2 billion) Stand-By
Arrangement.

The completion of the sixth review enables the release of a
further SDR 911 million (about US$1.34 billion) to Brazil, which
brings the total amount available to SDR 6.53 billion (about
US$9.6 billion). The Brazilian authorities, however, have
indicated that they do not intend to make any further drawings
on the arrangement.

Following the Executive Board's discussion on Brazil, Anne
Krueger, Acting Managing Director and Chair, made the following
statement:

"Brazil's performance under the Stand-By Arrangement remains
strong. All performance criteria and structural benchmarks for
the sixth review were met, and a structural benchmark for the
next review was met ahead of schedule.

"The Brazilian economy is poised for robust economic growth this
year. Leading indicators are showing renewed strength in private
consumption and investment, and domestic demand will likely be
the driving force behind growth this year. These promising
developments are being matched by a favorable performance of
Brazilian assets in global financial markets.

"The recovery of growth owes much to the sound economic policies
pursued by the government. The solid fiscal outturn in 2003 and
the government's commitment to a strong fiscal stance in 2004
have ensured that debt dynamics remain on a steady downward
path. The cautious response of monetary policy to the monthly
inflation rates seen over the past three months has been
appropriate and demonstrates the authorities' commitment to
ensuring that inflation hits the mid-point of the target range
in 2004.

"The government has made important progress in achieving its
social goals. The Zero Hunger program is already providing
substantial support to many of those in poverty while the
creation of the Bolsa Fam¡lia program is expected to lead to
better targeting and coordination of social assistance spending.
Ongoing improvements in the coverage and design of these
programs should contribute to lasting improvements in social
outcomes.

"Further progress on the government's structural reform agenda
would help ensure that the current cyclical recovery develops
into sustainable and long-lasting growth. Implementation of the
government's pension reform, an overhaul of subnational
consumption taxes, and passage of the new bankruptcy law will
all support investment and growth. In addition, the government's
efforts to deepen financial intermediation, improve the business
climate, and reform the labor market will be indispensable to
increasing productivity over the medium term, helping to secure
a durable improvement in living standards for the Brazilian
people," Ms. Krueger said.

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

AES GENER: Cachagua Announces New Schedule for Stake Offer
----------------------------------------------------------
Interested investors had until 4pm yesterday to submit orders
for up to 1.092 billion shares, or 19.25%, of Chilean holding
company Inversiones Cachagua's stake in local general AES Gener,
reports Business News Americas.

Monday's deadline was an extension of the original deadline,
which is March 25. Citing industry sources, newspaper Diario
Financiero said that the delay is related to the low level of
interest the sale has generated among investors, especially the
AFP pension funds, because of the high share price and
uncertainty about gas supplies from Argentina.

AFPs say the price of CLP80-CLP90 (US$0.13-0.15) a share is too
high and they are offering to pay CLP70-CLP80, the paper
reported. This would mean about a 20% discount from Gener's
current share price of about CLP100.

With the new deadline, the shares will be auctioned on March 31,
instead of March 26 as previously planned and they must be paid
for by April 2 instead of March 30.

Cachagua currently holds 98.65% of Gener but its participation
will be reduced to 79.65% if it sells all the shares. The
Company also retains the right to sell an additional 121 million
shares, or 2.13% of its stake, if demand is higher than
expected.

Gener is the second largest electricity generation group in
Chile in terms of operating revenue and generating capacity (22%
market share) with an installed capacity of 1,804 MW. The unit
currently participates in electricity generation in Colombia,
Argentina and the Dominican Republic, as well as natural gas
transportation in Chile and Argentina.

CONTACT:  AES GENER S.A.
          Mariano Sanchez Fontecilla 310 Piso 3
          Santiago de Chile
          Phone: (56-2) 6868900
          Fax: (56-2) 6868991
          Home Page: http://www.gener.com
          Contact:
          Robert Morgan, Chief Executive
          Laurence Golborne Riveros, Chief Financial Officer



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

PETROECUADOR: Extends Bidding Deadline for 45 Days
--------------------------------------------------
Ecuador's state oil company Petroecuador announced a 45-day
extension of the deadline to bid on offshore blocks 39 and 40 in
the Gulf of Guayaquil, relates Business News Americas. The
blocks are two of the four that made up Petroecuador's ninth
bidding round, which closed March 19 drawing only one bid from a
consortium of US companies made up of Clipper Energy and
Sundown.

The bidder submitted the only bid for the other two blocks,
onshore blocks 4 and 5. None submitted bids for blocks 39 and
40. Six other companies bought bidding rules for one or more of
the blocks but did not bid. They were Italy's Agip, Chile's
Sipetrol, US companies Hunt Oil, Occidental and ConocoPhillips,
and Spain's Repsol YPF.



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

JPSCO: Minister Explains $446M Additional Payment to Mirant
-----------------------------------------------------------
Jamaica's Finance Minister, Dr. Omar Davies, issued
clarifications regarding the issues surrounding the budgetary
provision of an additional $446 million in the 2003/2004
supplementary estimates for the Jamaica Public Service Company
Limited (JPSCo), against the $158.8-million tabled last year.

Citing Dr. Davies' statement submitted to the House of
Representatives last Tuesday, the Jamaica Observer reports that
at the start of the 2000/2001 financial year, the Government had
contemplated the sale of the JPSCo. Three companies responded,
but only Southern Energy Inc (SEI) expressed interest in
acquiring the company as an integrated operation, that is
transmission, distribution and generation. The Government
preferred this approach, which was more likely to facilitate an
even development of the power sector.

Following the Cabinet's decision in September 2000, it was
agreed to invite SEI to sign a Memorandum of Understanding for
the sale of a portion of the shares in JPSCo. Cabinet approved
the terms and conditions of the sale of 80% of the shares to SEI
on February 5, 2001. On the following day, the prime minister
presented to Parliament the terms of the agreement. The sale
took place on March 13, 2001.

Two agreements - a shareholders and share purchase agreement -
were signed by the National Investment Bank of Jamaica, acting
on behalf of the Government, and Mirant JPSCo (Barbados) SRL, a
subsidiary of Mirant Corporation.

Davies highlighted two articles of the agreement: "Article 2.2
of the share purchase agreement provided for the purchaser to
pay the seller US$201 million in immediately available funds,
for the rights, title and interest in the shares that were being
acquired. Article 2.3 provided for the purchase price to be
adjusted to account for the difference between the baseline
working capital and the transferred working capital."

"Neither party knew the value of the working capital adjustment
at the time the agreement was signed. The parties agreed that
this would be determined on the basis of the final audit to be
performed by Deloitte and Touche, JPSCo auditors. On completion
of the audit in August 2001, the working capital adjustment was
determined to be a deficit of US$14.6 million (converted at
J$45.68: US$1.00) = $667.2 million."

He said that the environmental indemnification given in article
8.2 of the share purchase allowed Mirant to claim on the
Government: the environmental issues which became the subject of
the claim were unknown to the parties at the date of closing;
and the environmental issues were in contravention of Jamaican
law at the time.

As part of their due diligence, Mirant was given access to all
of the JPSCo's environmental reports to facilitate their own
extensive environmental analysis of the company, prior to the
closing.

According to the Jamaica Observer, Dr. Davies' sought to clarify
these issues, which were raised (by Opposition spokesman on
finance, Audley Shaw) "in a manner suggesting that the
Government had not made public this part of the agreement,"



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

GRUPO MEXICO: Ferromex Repays Outstanding Bank Loan
---------------------------------------------------
Grupo Mexico, the world's third-largest copper producer, said
Thursday that its rail unit Ferromex paid off the remaining
US$110 million of a US$200 million syndicated bank loan.
In a filing with the Mexican Stock Exchange, Grupo Mexico said
the loan was granted last March by a syndicate of banks led by
J.P. Morgan Chase and Bank of America.

Grupo Mexico noted that a first tranche of US$90 million was
repaid in December of last year. The mining and railway concern
said cash generation and a recent MXN2 billion ($1=MXN11.0250)
debt placement on the local market enabled Ferromex to pay off
the debt.

"Grupo Mexico has achieved the declared goal of improving the
financial profile of its railroad subsidiary, by converting the
dollar-denominated debt into Mexican pesos at competitive market
rates, including a better amortization calendar for Ferromex,"
the Company said.

CONTACT:  GRUPO MEXICO S.A. DE C.V.
          Avenida Baja California 200,
          Colonia Roma Sur
          06760 Mexico, D.F., Mexico
          Phone: +52-55-5264-7775
          Fax: +52-55-5264-7769
          Home Page: http://www.gmexico.com
          Contacts:
          Germ n Larrea Mota-Velasco, Chairman and CEO
          Xavier Garca de Quevedo Topete, President and COO
          Alfredo Casar Perez, COO, Ferrocarril Mexicano
          Daniel Chavez Carren, COO, Industrial Minera Mexico
          Daniel Tellechea Salido, VP and Administration and
                                         Finance President



=================
V E N E Z U E L A
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PDVSA: Moves to Resolve Energy Concerns
---------------------------------------
Petroleos de Venezuela SA (PDVSA) President Ali Rodriguez met
with officials of Chile, Argentina, Uruguay and Paraguay last
week to discuss ways to help ease a shortage of power, reports
Bloomberg News. At the meeting, Mr. Rodriguez told the officials
that PDVSA is willing to ship oil to Argentina, Chile and
Uruguay to help ease an energy shortage.

"We have reserves that we will put at the disposition of
Argentina," Mr. Rodriguez said.

Argentina has already limited energy to 31 of the country's
largest manufacturers, cut gas exports to Uruguay and said it
will further limit exports.

In the meantime, Mr. Rodriguez said the country probably will
back planned production cuts by the Organization of Petroleum
Exporting Countries scheduled to start April 1. Demand for oil
usually declines in the second quarter and OPEC members need to
implement the cuts to prevent a sharp drop in prices, Rodriguez
said in an interview.


PDVSA: Slams SAIC's Claim to OPIC
---------------------------------
Science Applications International Corp. (SAIC) accused
Venezuela's state oil company PDVSA of expropriating its
investment in the terminated Intesa joint venture, reports
Reuters. PDVSA ended the Intesa joint venture with SAIC after
President Hugo Chavez accused the U.S. company of joining a
general strike against him that disrupted Venezuela's strategic
oil industry during December 2002 and January 2003. SAIC says
Chavez's government through PDVSA effectively expropriated its
60% stake in Intesa. It has filed an insurance claim to this
effect with the U.S.-based Overseas Private Investment
Corporation (OPIC).

OPIC offers political risk insurance for U.S. investors abroad
and the claim could affect its support for future investments in
Venezuela, which has been rocked by political conflict over the
five-year rule of left-winger Chavez.

Meanwhile, PDVSA called SAIC's claim to OPIC "irresponsible and
baseless". PDVSA said SAIC had repeatedly refused its proposal
to wind up the firm's investment in Venezuela according to the
statutes of the joint venture.

"SAIC ... has tried to evade its commercial obligations by going
to OPIC, giving a political color to this affair," the
Venezuelan oil firm added.

Mr. Chavez, who sacked more than 18,000 PDVSA workers for taking
part in the anti-government strike, had accused SAIC of
sabotaging PDVSA's central computer network to disrupt the
company's operations. SAIC says PDVSA took over its premises and
locked out its employees.




                            ***********


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

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