---

       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

            Thursday, January 18, 2001, Vol. 2, Issue 13

                             Headlines



B R A Z I L

CESP: Reveals 8 Potential Bidders For Controlling Stake
COPEL: Government To Privatize in November
COPENE: Back On The Auction Block In March
CSN: BNDES Examines Vicunha Loan
CVRD: BNDES Approves Contract To Untangle CVRD and CSN
CVRD: To Conclude Samitri Merge
TELEMAR: Preliminary Results Show Net Revenues Up 31 Percent


C H I L E

ENAMI: Hunts For Partners To Help Expansion of Melting Plants


M E X I C O

AHMSA: To Push Through With Cost-Reduction Plans
BANCRECER: New Owner To Take Over In June
BANOBRAS: Issues Bonds 500Mn Pesos
BUFETE INDUSTRIAL: Negotiations With Serbo Nears End
TRIBASA: Creditors Keen To Resolve Tax-Debt Issue
TROPICAL SPORTSWEAR: Closes Facility in Mexico
UNEFON: Sets New Price Tag Following Vodafone-Iusacell Deal



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

CESP: Reveals 8 Potential Bidders For Controlling Stake
-------------------------------------------------------
At least 8 companies are expected to bid for a controlling stake
in the Brazilian power generator Companhia Energ‚tica de Sao Paulo
(Cesp), according to a Brazil Financial Wire report released
Tuesday. The bidders are: Duke Energy, AES and Southern Energy of
the US, Electricit‚ de France, Electricidade de Portugal, Spain's
Endesa, local group VCB and Belgium's Tractebel. According to the
Sao Paul state energy secretary Mauro Arce, potential bidders have
requested the sale auction be scheduled on April 15.


COPEL: Government To Privatize in November
------------------------------------------
Brazil's Parana state integrated power company Copel would be
privatized in an auction scheduled for November according to an
unnamed adviser to state governor Jaime Lerner. The story surfaced
in a BNamericas.com report Tuesday.

"Although November is a tentative date, the governor is committed
to closing the operation this year," the adviser said. "This
depends on there being no delays in the process, which will begin
March 1 with the opening of bids from consultancy firms to
undertake an economic and financial evaluation of the company and
design a privatization model," the adviser added.

"What is new in the case of Copel is that it will be the first
state-owned integrated power company to be privatized as a whole -
distribution, generation and transmission - which is a further
incentive for investors," the adviser continued.

"Moreover it is a growing company with a guaranteed market, its
books are balanced, and it has neither legal nor labor problems,
and has a good-sized labor force of 6,200 employees."

According to the source, the Parana state government, after
receiving the bids, would sign the contracts in April followed by  
90 days for the chosen company to carry out its appraisal and 120
days for the preparation of the privatization model. All the
financial resources obtained from the sale of the company will not
be used to pay debts. Instead proceeds will be invested in
education, health, security, transport and generating projects, in
compliance with the 1998 law regarding the use of funds obtained
from such a sale.


COPENE: Back On The Auction Block In March
------------------------------------------
Brazil's Central Public Finances Director Carlos Eduardo de
Freitas said in a Reuters report published Tuesday that the owners
of Companhia Petroquimica do Nordeste (Copene) will again try to
sell the petrochemical maker in March. No exact date has been set
yet but the sale document will be published by Feb. 12.

The Company's first attempt in mid-December collapsed when
prospective bidders failed to give satisfactory offers. The
botched sale was a disappointment to analysts who hoped the
transaction would undo the first knot in a complex cross-ownership
structure of Copene, which has strangled investment in the
petrochemical sector.

The owners were reportedly contemplating public disclosure of a
minimum bid price public this time around, though Freitas denied
that was the reason the first auction ended without a winner. "In
my opinion, the sale model does not explain the failure. What
happened was a lack of competition," he said.


CSN: BNDES Examines Vicunha Loan
--------------------------------
The Brazilian development bank BNDES (Banco Nacional de
Desenvolvimento Economico e Social) is still studying the loan
requested for Vicunha group to fund the acquisition of shares held
by Previ and Bradespar in Companhia Siderurgica Nacional (CSN),
reported South American Business Information. The deal would be
funded using US$200 million through debentures to be converted
into CSN's common stock.


CVRD: BNDES Approves Contract To Untangle CVRD and CSN
-----------------------------------------------------------
The Board of Banco Nacional de Desenvolvimento Economico e Social
(BNDES) and BNDESPar approved the contract which untangles cross-
ownership between Companhia Siderurgica Nacional (CSN) and
Companhia Vale do Rio Doce (CVRD), South American Business
Information reported Tuesday. The move will allow the Vicunha
group's proposed debt package, which it needs to acquire equity
positions currently held by Bradespar and Previ in CSN, worth
R$763mil. Vicunha group is the majority shareholder of CSN.
However, the execution of the contract awaits approval of Comissao
de Valores Mobiliarios (CVM) since BNDESPar would participate in
the transaction by acquiring R$391 million worth of convertible
debentures issued by CSN.


CVRD: To Conclude Samitri Merge
-------------------------------
Companhia Vale do Rio Doce (CVRD) said it would conclude the
merger of Samitri, according to a South American Business
Information released Tuesday. The control of the company Samitri,
which has facilities at Alegria, Morro Agudo and Corrego do Meo at
Minais Gerais state, was acquired by CVRD in May 2000. Sales last
year reportedly reached 13.7 million m tons, 10.2 million m tons
of which is destined for exports. Sales in 2001 are expected to
reach 13.9 million m tons.


TELEMAR: Preliminary Results Show Net Revenues Up 31 Percent
------------------------------------------------------------
Preliminary 2000 results showed that fixed-line telephone operator
Telemar registered a 31-percent increase in net revenue, however,
higher fees hurt its operating profit, according to a Reuters
Tuesday report. The company recorded 8.1 billion reais in
revenues, up from 6.2 billion reais in the year-earlier period.

Complete and final results for the fourth quarter and the year
will be released on February 15. Telemar, in a statement, said
that its balance sheet showed nonrecurring expenses, including an
increase in provisions for customers who failed to pay their bills
and costs from renegotiating contracts with some cellular
companies. Its fourth-quarter operating results will take a hit
from an increase in inter-connection rates between operators, the
company added.



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

ENAMI: Hunts For Partners To Help Expansion of Melting Plants
-------------------------------------------------------------
Enami, a Chilean mining company, is said to be in pursuit of
private partners to back the expansion of its melting plants,
according to a South American Business Information report released
Tuesday. In a related report, Codelco rejected expanding Enami's
Ventanas melting plant. The company, which posted losses of US$25
million last year and carries some US$500 million in liabilities.



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

AHMSA: To Push Through With Cost-Reduction Plans
------------------------------------------------
Altos Hornos de Mexico (AHMSA), Mexico's largest steelmaker, said
in a statement to the Mexican Stock Exchange that it would go
ahead with its plans to reduce costs and invest approximately $100
million in plant modernization, according to Reforma/Infolatina's
Tuesday edition.

"Notwithstanding a drop in international steel prices of between
25 percent and 30 percent (depending on the particular product),
the overvaluation of the peso and a steep rise in energy prices,
the company stuck with its AHMSA XXI cost-reduction program, which
allowed it to maintain production levels and take advantage of
opportunities in the market," the statement said. The company
predicts that sales this year will be "similar to last year's."


BANCRECER: New Owner To Take Over In June
------------------------------------------
Carlos Septien Michel, a Bancrecer top executive, said in a
Reforma/Infolatina Tuesday report that the government-intervened
Mexican bank Bancrecer would be handed over to its new owner in
June of this year. According to Michel, the bank will be sold by
IPAB, bank bailout agency, without its bad-loan portfolio, and
with a viable loan portfolio worth approximately 10 billion pesos.
To date, the bank's level of capitalization is 18 percent, Septien
added.


BANOBRAS: Issues Bonds 500Mn Pesos
----------------------------------------
Mexican state-run development bank Banobras issued an announcement
for the auction of so-called Infrastructure Bank Bonds worth 500
million pesos. The proceeds of the issue are to restructure its
liabilities, according to a Reforma/Infolatina report published
Tuesday. Banobras said that the bonds (BANOBRAS 00-1) issued will
be for a term of 1,820 days and will yield a rate linked to
prevailing rates on 182-day Treasury notes, payable on the final
day of each 182-day period.


BUFETE INDUSTRIAL: Negotiations With Serbo Nears End
----------------------------------------------------
Negotiations between the debt-laden Mexican construction firm
Bufete Industrial and Grupo Serbo is about to conclude,
Reforma/Infolatina said Tuesday. A source close to the talks
revealed that the two companies would likely sign a series of
agreements later this week. Reportedly, this is a move which will
see Grupo Serbo, headed by Sergio Bolanos, take a stake in the
heavily indebted firm Bufete. Creditors of the company have
already been notified of the details. Discussions concerning the
restructuring of the company's debt will immediately follow  
signing of the agreement.


TRIBASA: Creditors Keen To Resolve Tax-Debt Issue
-------------------------------------------------
Representatives of the bank creditors of the heavily indebted
Mexican construction company Tribasa met with the company's
representatives early this week, reported Reforma/Infolatina
Tuesday. The company's creditors are reportedly seeking
information concerning the status of the ongoing negotiations that
the company has with the Finance ministry regarding its tax-debt
estimated to be at $80 million. They vowed not to go forward with
plans to restructure the debt of the company unless the tax-debt
issue is settled.


TROPICAL SPORTSWEAR: Closes Facility in Mexico
----------------------------------------------
Tampa, Florida-based Tropical Sportswear International Corp. said
it closed its sewing plant in Chihuahua, Mexico, and would take
$600,000 in charges during the second quarter to cover severance
and other closing costs, Reuters reported Tuesday. The company,
which acquired the plant in 1998, posted an 11-percent increase in
first-quarter profits to beat Wall Street targets but said results
were hurt by order cancellations and a weak retail environment.

Tropical reported first-quarter earnings of 42 cents per share
excluding one-time charges compared with 38 cents per share a year
ago. Including items, Tropical had earnings of $2.7 million, or 35
cents per share, for the quarter versus $2.4 million, or 30 cents
per share, in the same period a year ago. Net sales fell 3 percent
to $98.6 million from $101.7 million a year ago.


UNEFON: Sets New Price Tag Following Vodafone-Iusacell Deal
-----------------------------------------------------------
Unefon, which recently resumed talks with Spanish telecoms company
Telefonica over a deal to sell its 49 percent stake in the company
to the telecoms giant, decided to increase the company's total
value of $2 billion, Reforma/Infolatina reported Tuesday. The
decision follows Vodafone's recent acquisition of Iusacell,
Unefon's competitor. Vodafone reportedly purchased a 34.5-percent
stake in Iusacell for $974 million.

After Telefonos de Mexico (Telmex) spins-off America Movil, known
in Mexico as Telcel, Unefon has rights to the largest number of
transmission frequencies in the country. This is believed to
support the hefty premium that Telefonica will likely be willing
to pay for a stake in the company.




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 American is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Trenton, NJ, and
Beard Group, Inc., Washington, DC. John D. Resnick, Edem Psamathe
P. Alfeche and Janice Mendoza, Editors.

Copyright 2001.  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 301/951-6400.


* * * End of Transmission * * *