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

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

         Monday, February 12, 2001, Vol. 2, Issue 30

                           Headlines



A R G E N T I N A

BANCO DE CORDOBA: Delays Privatization To Late April or Early May


B R A Z I L

CAEMI: To Announce New Owner Soon
COPENE: Brazilian Government Struggles To Attract Bidders
SABESP/ELETROPAULO: Agreement Aimed At Reducing Power Costs
TELEFONICA CTC: Aguirre Resigns As Chairman


C H I L E

EDELNOR: Fitch Downgrades Ratings To `CCC'
TELEFONICA CTC: Announces Restructuring Of $2.4Bn Debt


M E X I C O

AEROMEXICO: Ascent's SmartAirport Installed AeroMexico, SEAT
CHRYSLER: Top Officials Defend Restructuring Moves
CHRYSLER: To Forge Ahead With Aggressive Development Plans
GRUPO DINA: Union Postpones Strike At Plant
GRUPO DINA: Needs $180M Capital Injection To Escape Bankruptcy
GRUPO SIDEK: Assets Sales Report 1/1/2001 to 1/31/2001
PEMEX: Endeavors To Attract Private Investor
TRANSPORTACION MARITIMA: Bondholders' Approve Consolidation


V E N E Z U E L A

MAVESA: Polar Gets Get Green Light To Launch Takeover Offer


     - - - - - - - - - -


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

BANCO DE CORDOBA: Delays Privatization To Late April or Early May
-----------------------------------------------------------------
Privatizing Banco de Cordoba has been delayed until late April or
early May due to complicated preparation work, according to
privatization committee member Ruben Ponchio in a BNamericas.com
Thursday report.

Ponchio says bidding rules will be released in March.However,
prior to that, the rules must meet the approval by both
provincial authorities and the World Bank, which is supervising
the privatization. Interested parties need these rules to qualify
for the due diligence process.

Thus far, the process has failed to attract many prospective
bidders. If any, most of these institutions are Argentine with
foreign owners.



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

CAEMI: To Announce New Owner Soon
---------------------------------
In the next few days, the new controller of Brazil's Caemi
Mineracao e Energia SA will be disclosed after majority
shareholders relinquish control of the company, Dow Jones said
Thursday. The Frering brothers, who own 60 percent of the
company's voting capital, had until Tuesday to decide on the
winning bidder. The two brothers are still meeting with Morgan
Stanley consultants in New York to finalize the deal.

A recent review by a large investment bank valued the controlling
equity position in Caemi at $220 million. However, market
observers said the controllers expect to fetch $400 million for
their chunk of the company.

The final decision lies in the hands of Japan's Mitsui Mining
Co., which owns the remaining 40 percent of the voting rights. It
has a preemptive right to match any offer for the company, which
may delay a decision on the matter.

"Mitsui might delay the process, because it will wait until the
last minute to decide whether to bid or not," said an
institutional investor, who asked not to be named. The Japanese
mining group would have 60 days to chose whether or not to bid
after the Frering brothers announce their decision.


COPENE: Brazilian Government Struggles To Attract Bidders
---------------------------------------------------------
Analysts speculate the auction of the Brazilian petrochemicals
giant Companhia Petroquimica do Nordeste (Copene) scheduled for
March could attract a single bidder, Brazil Financial Wire
reported Thursday. Ultra group, which analysts predict is the
sole bidder likely to participate in the process, allegedly
offered $822 million for Copene. Copene's controlling
shareholders -- Conepar, Odebrecht, Mariani and Suzano -- asked
R$ 1.05 billion. Luiz Ot vio Leydner, petrochemicals analyst with
Banco Pactual, predicts that Ultra should offer $900 million for
Copene.

The Brazilian government reportedly invited several companies to
get in the race for Copene but, so far, failed to find candidates
for the sale. The local subsidiary of Dow Chemical of the U.S.
last week announced it wouldn't bid for Copene. In addition, the
local unit of Basf also dismissed plans to participate in the
March sale.


SABESP/ELETROPAULO: Agreement Aimed At Reducing Power Costs
-----------------------------------------------------------
Brazilian water and sewage utility Sabesp and power distributor
Eletropaulo, last week, sealed a deal aimed at reducing
electricity costs at the water utility, Sabesp's production vice-
president Antonio Netto said in a report released by Brazil
Financial Wire Thursday. The deal is expected to save about
R$650,000 annually.

Currently, electricity is Sabesp's second biggest single
expenditure. "We spend some R$ 170 million on electricity a
year," said Netto, adding that power spending has been cut by
some R$ 13 million since 1999.


TELEFONICA CTC: Aguirre Resigns As Chairman
-------------------------------------------
Telefonica CTC Chile announced in a statement that Javier Aguirre
has resigned from his post as chairman of the company, EFE
reported Thursday.

"The erstwhile chairman of the Telefonica CTC Chile board of
directors, Javier Aguirre Nogues, has presented his irrevocable
resignation from the post, which is based on reasons of a purely
family nature and has been accepted," the firm said in a
statement.

His decision to step down comes just days after the release of
the company's poor results for 2000, posting heavy losses for the
second consecutive year. Aguirre's resignation includes his posts
as chairman of the affiliates Telefonica del Peru, Telefonica
Movil, Telefonica Mundo, Telefonica Empresas, Telefonica
Negocios, Telefonica Equipos, Publiguias and Istel, and his
position as manager of Telefonica Internacional Chile.



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

EDELNOR: Fitch Downgrades Ratings To `CCC'
------------------------------------------
Fitch downgrades the local and foreign currency ratings of
Empresa Electrica del Norte Grande S.A. (Edelnor) to `CCC' from
`B-' and maintains its Rating Watch Negative status.

This action follows the downgrade of Edelnor's ratings in
November 2000 from `B+' to `B-'. The `CCC' rating indicates that
default of some kind is a possibility. Approximately $340 million
of debt is affected.

The rating action is a result of continuing poor financial
performance and short-term liquidity concerns. The company's
liquidity position is very tight given estimated cash on hand and
required expenditures and payments in 2001. The next coupon
payment in the amount of $9.687 million is due Mar. 15, 2001, and
the company's $5 million line of credit also expires in March.
Other required payments are pending as well, which may need to be
paid prior to the $4.725 million coupon payment in June.

Cash generation through operating activities has been limited due
to competitive pricing pressures in the Northern Interconnected
System and the resulting impact on Edelnor's margins and cash
flow. Near-term operating cash flow is expected to be limited and
insufficient to cover interest payments alone. Sources of
additional cash include minor asset sales, which combined with
cash flow, could potentially sustain the company for another 6-9
months as the company pursues opportunities, which could bridge
the current market imbalance in northern Chile.

If Edelnor is able to obtain sufficient cash through 2001, it
will face additional challenges in 2002 as operating cash flow
will likely be further affected by the loss of the EMEL supply
contracts, which are priced higher than current spot prices. The
loss of the EMEL contracts will reduce contracted capacity to
less than 25% of Edelnor's installed capacity of 653 MW.
    

TELEFONICA CTC: Announces Restructuring Of $2.4Bn Debt
------------------------------------------------------
Telefonica CTC Chile announced plans to restructure its $2.4-
billion debt, EFE reported Wednesday. According to Javier
Aguirre, CTC Chairman, the firm's operations have suffered
because of the tariff restrictions mandated by the government in
1999. The company has filed an appeal with Chilean regulators to
revise the tariff decree, which fixes the rates that CTC can
charge its competitors for access to its network. Aguirre also
blamed the company's $199 million loss last year on the measure.

According to CTC Administration and Finance Vice President Julio
Covarrubias, the company's annual investment outlays of $600
million had been debt-financed over the past four years.



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

AEROMEXICO: Ascent's SmartAirport Installed AeroMexico, SEAT
------------------------------------------------------------
Ascent Technology, Inc., a leading supplier of logistics software
for airports and airlines worldwide has installed its
SmartAirport Operations Personnel Allocatorsolution at
AeroMexico, Mexico1s largest airline, and SEAT, both part of
CINTRA S.A. de C.V.

Ascent's SmartAirport Operations Personnel Allocator uses
sophisticated queuing theory based models to compute the number
of employees needed to provide satisfactory service levels while
minimizing costs. The product can automatically compute the
number of check-in agents needed to keep waiting time or queue
lengths below acceptable levels. During real-time operation,
Ascent1s Personnel Allocator offers value to the end user by
automatically updating plans and redeploying personnel as flight
delays and cancellations occur. Irregular operations, such as
diversions, are handled through powerful find and solve
operations that can be used to pro-actively fix problems before
they become unsolvable.

"The business benefits of using such a sophisticated product are
considerable," said Dr. Alfonso Villegas Zuniga, Subdirector of
Planeacion at AeroMexico. "We plan to increase our operations
with 8 new planes and 12 percent in the next year, and this
product's smart algorithms enable us to efficiently staff-up for
such an increased load while paying attention to the quality of
life issues that our employees face and to the service levels for
our passengers. It pays careful attention to the bottom line, and
yet it does not neglect important issues, such as overtime pay,
break and off-day times, and training, that are critical to our
labor unions."

The product has already been validated at Mexico City, the
largest airport in the region, and transition to full production
use is expected shortly. Aeromexico has also begun to actively
use the product to plan loads, generate shifts, and plan rosters
for their employees at several airports in Mexico including
Tijuana, Monterrey, Matamoros, Campeche, and Guadalajara.

"We are very impressed with Ascent's dedication to this product
and the level of support we have received in this ongoing
partnership that we expect to broaden in coming years," says
Villegas. "We looked at a number of products before making our
decision, and none comes close to matching the level of business
benefit that this product provides, especially in terms of its
integrated approach to real-time management with planned
operations."

Ascent's Personnel Allocation Solution

Ascent's Smart Airport Personnel Allocator product operates on
top of SmartBase, Ascent1s flagship resource database for
integrated planning and real-time control of airline and airport
operations. It uses state-of-the-art Java GUI technology and can
be offered through a browser to employees, business analysts, and
operational personnel who need to view, update, and manage
personnel information. It offers integration options to connect
to enterprise data, such as employee information, flight
schedules, load forecasting data, and real-time operational
updates.

While planning shifts, the product blends IBM's OSL (Optimization
Subroutine Library), a linear programming and mixed-integer
programming solver, with a new genetic algorithm to guarantee
any-time performance and ensure optimal results. The product
automatically produces rosters that are almost always better than
handcrafted counterparts and provides considerable relief to
operations managers who often have to work hard to keep such
rosters up-to-date in the face of continual change.

The product includes a novel scenario-based representation that
allows multiple versions of complex labor rules to be fully
maintained. This enables planners to conduct easy what-if
scenarios and multiple airports to be handled by the same
business analyst. Such a capability is intrinsically important to
airlines that need to look at operational staffing costs globally
across the airline and to handling agents that operate multiple
airports.


CHRYSLER: Top Officials Defend Restructuring Moves
--------------------------------------------------
President Dieter Zetsche and Chief Operating Officer Wolfgang
Bernhard, both from struggling Chrysler, refuted analysts'
criticisms, saying it did just the right thing and that deeper
cuts were unlikely, Reuters said Thursday.

"I don't foresee major asset changes for the end of the month
announcement," Zetsche said.

Some analysts criticized the company's restructuring plan for not
trimming more from the company's costs. According to them,
Zetsche and Bernhard should have made deeper cuts in the
company's U.S. and Canadian manufacturing arms, but were bound by
union contracts that raise the expense of layoffs and bar plant
closings. Bernhard said the union contracts were not an issue.

"When we made our plans and had our discussions with the unions
... we never came up with a business plan where we wanted to
close plants and the union said, 'no,'" Bernhard said. "We
followed a business plan where it made sense to close plants."

Bernhard also said Chrysler did not want to close so many plants
it would have no room to grow. "If you think there's a future for
the company, you don't burn bridges while you're retreating," he
said.


CHRYSLER: To Forge Ahead With Aggressive Development Plans
----------------------------------------------------------
Chrysler announced it would go ahead with its plans to launch new
models in the next few years, according to company president
Dieter Zetsche in an EFE report released Thursday. He stressed
that the recent dismissals and plant closures will not deter it
from embarking on the said plan, saying that it is the only
formula for the company to restore profitability.

Previous reports suggested that Zetsche announced plans to
dismiss approximately 128,000 employees in the U.S. and Canada
and to shut down six plants, five of which are in Latin America.


GRUPO DINA: Union Postpones Strike At Plant
-------------------------------------------
Consorcio G. Grupo Dina, S.A. de C.V. (NYSE: DIN, DIN.L), a
leading Latin American producer of trucks, today announced that
the Independent Workers National Union for the Automotive
Industry intends to postpone a planned strike at the company's
Dina Camiones plant in Sahagun City. The Union has requested a
20-day extension, and the strike will be rescheduled from
February 7th to midnight on February 27th.

However, a strike has been averted at the Plasticos Automotrices
plant, which produces plastic parts and components for the
automotive industry. Under the terms of the agreement the 97
workers at this plant will receive a 10% wage increase and a 6%
increase in fringe benefits.

Dina's General Director, Mr. Gamaliel Garcia, stated that, in
principle, the company wishes to offer a fair work contract to
its workers in all its plants. Nevertheless, the company's
financial situation has been severely damaged as a result of the
cancellation of the Western Star Truck (WST) contract to
manufacture 9,000 vehicles over the next three years. Under the
circumstances Dina cannot meet the 40% wage increase that the
Union has requested for the Dina Camiones employees. In fact, the
company has been compelled to implement a series of actions to
reduce its overall costs to the maximum possible extent in order
to improve its financial situation. Unfortunately, the Union's
expectations do not correspond to the harsh realities of the
company's current circumstances.

In September 1999 Grupo Dina and WST signed a contract with a 10-
year option, under which Dina would produce class 7 vehicles for
this Canadian company for sale in North America. However, on
September 27, 2000, WST notified Dina that it was canceling the
contract since the company had been acquired by Freightliner LLC.

This contract cancellation, and the severe downturn in the medium
and heavy duty truck sector of the North American market and
Dina's reduced share of the domestic Mexican market, have created
a cash flow problem which precludes Dina from meeting all of the
Union's requests and avoiding a headcount reduction.

Mr. Garcia asserted that Dina's reduced participation in the
Mexican market is due to the company's inability to obtain
sufficient funding to lease finance its vehicles to its
customers. Meanwhile, larger companies with the major share of
the Mexican market have the financial resources from their
foreign parent companies to be able to offer lease financing.

It should be noted that starting in the second quarter of 2000,
and as part of Dina's downsizing and restructuring process, the
company made major organizational changes and decided to lay off
300 employees. This number represented 50% of its non-union
workers. Additional layoffs may be necessary in the next few
months, as part of the cost reduction program. Consistent with
the company's program, no salary increases were offered to non-
union workers this year.

Dina's claim against WST for US $110 million was initiated on
October 27, 2000 and the company still awaits a ruling by The
International Court of Arbitration of the International Chamber
of Commerce.

Mr. Garcia pledged that the company would keep the financial
community, its investors, employees, and customers, fully
informed as to the status of its labor relations and any other
material developments.

The Private Securities Litigation Reform Act of 1995 provides a
"Safe Harbor" for forward-looking statements to encourage
companies to provide prospective investors with information,
provided that such statements are identified as forward-looking
and are accompanied by meaningful cautionary statements
identifying important factors which could cause results to be
materially different from those discussed in the statement.

In discussing the future prospects of the Company, management has
identified factors including, but not restricted to the
following:

-- Economic and industry conditions, including interest rates and
inflation.

-- Conditions in Mexico and Argentina, among the Company's
primary markets, which have experienced significant volatility in
recent years, including devaluation of the peso.

-- The successful implementation of the Company's restructuring
program, and a satisfactory resolution of its financial
difficulties.

-- Competitive and overall industry conditions in its major
markets.

-- Order flow for its products from major customers.

-- Harmonious relationships with its workers and labor unions
that represent them.

-- The outcome of a lawsuit against Western Star for breach of
contract. There is no assurance that the eventual outcome will be
beneficial to the company.


GRUPO DINA: Needs $180M Capital Injection To Escape Bankruptcy
--------------------------------------------------------------
Mexican truck and bus maker Grupo Dina must immediately embark on
a major debt-restructuring effort and secure $180 million in
fresh capital to avoid bankruptcy. Javier Jimenez, of Mexico City
consultants Bursametrica, and Ismael Capistran, an analyst at
Valores Mexicanos brokerage explained the ultimatum in an El
Economista/Infolatina Wednesday edition.

According to them, Dina simply is not large enough to compete on
the global stage without the backing of a much larger partner,
which could possibly provide the company with new financing and
help it export to the United States, Canada, Central America and
South America. As reported, Dina's liabilities total $243 million
and assets total $360 million.


GRUPO SIDEK: Assets Sales Report 1/1/2001 to 1/31/2001
------------------------------------------------------
Grupo Sidek, S.A. de C.V. (OTC Bulletin Board: GPSAY GPSBY) today
announced a report regarding assets sales from January 1, 2001 to
January 31, 2001, pursuant to its obligations under the
restructuring agreements entered into with Sidek Creditor Trust:

                         ASSETS SALES REPORT
               FROM JANUARY 1, 2001 TO JANUARY 31, 2001
                      (Figures in US$ thousands)


    Assets with Reorganization
     Value higher than
     USD$ 5,000               Sales Value    Reorganization Value
    I. Hotels                           0                       0
    II. Real Estate                     0                       0
    III. Marinas and Golfs              0                       0
    IV. Other                           0                       0
    Subtotal                            0                       0

    Assets with Reorganization
     Value less than USD$ 5,000

    Subtotal (transactions)         1,352                    N.A.

    Total                           1,352                    N.A.


PEMEX: Endeavors To Attract Private Investor
--------------------------------------------
Raul Munoz, head of Petroleos Mexicanos (Pemex), announced in a
Reuters Thursday report that the company is working hard to lure
private investment. Mr. Munoz believes new capital will help it
expand existing production to meet the needs of Mexican private
industry and be competitive.

"We will fight to be at the vanguard of our competitors in the
export markets and this can only be achieved by working in
harmony with the other links in the chain," remarked Munoz.

Mexico has tried several times to attract private investment to
petrochemicals over the past decade, however, the private
investment sector seems to have little interest in sinking cash
into petrochemicals projects firmly in the hands of the state.
Mexican law says the nation cannot sell more than 49 percent of
such plants to outside companies. The latest bid to attract
private cash collapsed after all bidders withdrew on concerns for
the security of their investment in government-controlled assets.

Pemex officials last week said that Mexico will need to invest
$26 billion to $28 billion in the petrochemicals industry to meet
domestic demand through 2020.


TRANSPORTACION MARITIMA: Bondholders' Approve Consolidation
--------------------------------------------------------------
Mexico City-based company Transportacion Maritima Mexicana (TMM)
said it go forward with the consolidation of its Transportacion
Ferroviaria Mexicana (TFM) unit to create a new business group.
The company announced its plan in a Reuters report published
Wednesday after it obtained approval from bondholders. In a
statement, the company related that it had received the consent
of holders of more than 75 percent of the aggregate principal of
its 9.25 percent notes due 2003 and the holders of its 10 percent
senior notes due 2006.

The integration of TMM with its unit TFM will enable the new
group to merge with Grupo Servia, which has 52.2 percent of the
voting control of TMM.

"The company resulting from the fusion will be called Grupo TMM,"
the statement said.



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

MAVESA: Polar Gets Get Green Light To Launch Takeover Offer
-----------------------------------------------------------
Venezuela's National Securities Commission approved launching a
friendly takeover offer by local industrial group Empresas Polar
for consumer goods maker Mavesa, CNV president Aida Lamus said in
a Reuters report published Thursday. The offer, according to
Lamus, can now take effect at any time. Polar is offering 99
bolivars per share or $8.50 per American Depositary Receipt for
up to 100 percent of Mavesa's stock, valuing the company at
around $510 million.




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

Troubled Company Reporter Latin 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.

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