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

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

         Tuesday, February 20, 2001, Vol. 2, Issue 35

                           Headlines



B R A Z I L

CAEMI: Mitsui To Use Entire Deadline For Rights Decision
CESP: To Issue R$ 230M Worth Of Debentures
CHRYSLER: Encounters Obstacle In The Production Of New Vehicle
SASSE: CNP Assurances SA Buys Stake For $538M
SASSE: Federal Judge Upholds Union Bid Suspending Sale


C O L O M B I A

COLTEJER: Scrambling For Affirmative Votes From 9,600 Creditors


M E X I C O

ASUR: Comments On Operadora Aero-Boutiques Lawsuit
BANCRECER: Banorte Eyes Portfolio
CHRYSLER: DaimlerChrysler, Canadian Auto Workers Reach Agreement
GRUPO DESC: Announces Unaudited Fourth Quarter 2000 Results
GRUPO DINA: Mexican Bourse Temporarily Suspends Trading In Shares
XEROX: Shareholder Files Lawsuit Accusing Stock Fraud


P A R A G U A Y

ANTELCO: MSDW Refuses To Manage Privatization


V E N E Z U E L A

CANTV: Retirement Program Translates Into Losses
MAVESA S.A.: CNV Approves Required Changes To Proposed Offers


      - - - - - - - - - -


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B R A Z I L
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CAEMI: Mitsui To Use Entire Deadline For Rights Decision
--------------------------------------------------------
Japanese trading company, Mitsui, said it would use its full 60-
day deadline to decide whether to use its pre-emptive right to an
equity position in the Brazilian mining company Caemi, a report
in the Gazeta Mercantil stated Wednesday. Mitsui currently owns
40 percent of Caemi's voting shares which were not sold in the
most recent transaction.

"If we have 60 days, why not use them?" a source at Mitsui said.
Mitsui will use the full 60 days to analyze its negotiating
potential. Should the company decide to use its pre-emptive
right, it could negotiate with BHP and local mining group CVRD a
joint ownership of Caemi.


CESP: To Issue R$ 230M Worth Of Debentures
------------------------------------------
The Sao Paulo Stock Exchange (Bovespa) expects power generator
Companhia Energetica de Sao Paulo (Cesp) to issue R$ 230 million
in simple debentures, according to a Brazil Financial Wire report
Thursday. Bovespa confirmed that the power utility's managing
board already approved the placement on February 5. CESP
reportedly will issue 23,000 notes with a face value of R$
10,000. The deal must however be approved by the shareholders,
who are scheduled to meet on March 16.

Recent reports suggested that CESP would likely go on the auction
block again in the first half of the year. The power utility's
first attempt to sell in December collapsed when it failed to
attract bidders due to the lack of an environmental license
authorizing it to fill up its reservoir.


CHRYSLER: Encounters Obstacle In The Production Of New Vehicle
--------------------------------------------------------------
Chrysler's plan to produce a new vehicle at its Brazilian plant
could suffer a setback, according to South American Business
Information report published Thursday. Previously this month, the
company halted production of the pickup truck Dodge Dakota at the
same facility. The Brazilian motor vehicles legislation
stipulates that the truck maker should comply with the same
nationalization level foreseen for Dakota, 50 percent until the
end of 2001 and 60 percent until December 2002. Last year,
Chrysler posted a R$380-million turnover in Brazil.


SASSE: CNP Assurances SA Buys Stake For $538M
---------------------------------------------
CNP Assurances SA, France's largest life insurer, bought 50.75
percent stake in the insurer Caixa Seguros (Sasse) from Caixa
Economica Federal's employee pension fund (Funcef) for 1.07
billion reais ($538 million). The announcement came by way of an
unnamed Funcef spokesman in a Bloomberg report released Thursday.

As a result, CNP now holds exclusive rights to sell insurance in
about 1,900 branches of Caixa Economica Federal (CEF). CEF
manages a franchise chain of 8,500 lottery houses, which also
could serve as outlets to sell insurance.

CNP plans to take advantage of CEF's 2 million checking account
holders and 14 million savings account holders to sell products.
According to CNP, it may spend another 20 million reais to buy
another 1 percent of Sasse. Following the auction, CEF will
retain 48.2 percent of Sasse. Brazil is offering CNP the chance
to diversify the source of its revenue, which is concentrated in
France. Sasse had a net profit of 95 million reais in 2000 on
gross revenue of 1.4 billion reais. The value of Sasse's premiums
last year was 890 million reais.


SASSE: Federal Judge Upholds Union Bid Suspending Sale
------------------------------------------------------
In the afternoon after France's CNP Assurances SA bought 50.75
percent stake in insurer Caixa Seguros (Sasse) for 1.07 billion
reais ($538 million), a judge in Sao Paulo's Regional Federal
Tribunal decided to uphold a legal bid by a banking union to
suspend the sale. Court spokesman Rui Hernando Barbosa, in a
Bloomberg Thursday report, said it would mean that the validity
of the sale is still open to debate since the decision came well
after the morning's sale. However, Fernando Alves Meira, a lawyer
at the Sao Paulo corporate law firm of Pinheiro Neto representing
Goldman Sachs, said that the sale couldn't be annulled because
the auction happened in the morning before the decision came into
force.

Goldman, Sachs & Co. advised Funcef, Caixa Economica Federal's
employee pension fund, on the sale.



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C O L O M B I A
===============

COLTEJER: Scrambling For Affirmative Votes From 9,600 Creditors
---------------------------------------------------------------
Colombian textile group Coltejer, with debts totaling 530 billion
pesos, only has a week more to secure favorable votes from 9,600
creditors regarding its debt restructuring, South American
Business Information said Thursday. A large majority of its
banking and international creditors have reportedly agreed with
the new deal to be signed on February 20, 2001, within the
Colombian law 550 for economic intervention. The textile group
has also started collecting signatures from 4,300 workers and
3,800 retired former employees, while negotiating toward the
receipt of 30 billion pesos for administrative restructuring.



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

ASUR: Comments On Operadora Aero-Boutiques Lawsuit
--------------------------------------------------
Grupo Aeroportuario del Sureste, S.A. de C.V. (NYSE:ASR;
BMV:ASUR) (ASUR) announced today that it had received notice that
a lawsuit was filed against it by Operadora Aero-Boutiques, S.A.
de C.V. Operadora Aero-Boutiques alleges that it is the successor
of Aero-Boutiques, S.A. de C.V., one of the duty-free concession
operators at the Cancun airport. The lawsuit, was brought to
prevent ASUR from exercising its option to terminate Aero-
Boutiques' lease to operate a duty free store in Cancun
International Airport. ASUR is the operator of nine airports in
the southeast region of Mexico, including Cancun International
Airport.

The lawsuit is not expected to affect the progress of the
extension and remodeling of the Cancun airport terminal.
Management expects that construction of the Cancun shopping mall
will be completed on schedule. Although there can be no
assurance, ASUR does not anticipate that the lawsuit will have a
material adverse effect on its future revenues.

Under the concession for Cancun international Airport, ASUR
acquired the rights and obligations of ASA, the Mexican
government airport agency, with respect to Cancun International
Airport, including the contract with Aero-Boutiques. The lease
entitles ASUR to terminate the lease upon payment of a specified
amount. Under the lease, ASUR is required to give one year's
notice of its intent to terminate the lease. ASUR notified Aero-
Boutiques in August 2000 of its intention to exercise its
termination option with respect to the lease, and has otherwise
complied with the terms of the lease agreement.

Counsel for ASUR is reviewing this lawsuit. ASUR intends to take
all necessary legal action to preserve its rights under the
lease.


BANCRECER: Banorte Eyes Portfolio
---------------------------------
Mexico's Grupo Financiero Banorte has expressed interest in
acquiring a portfolio of home mortgages held by government-
intervened Bancrecer, South American Business Information said
Thursday. Report has it that the portfolio, likely to go on sale
before the end of March through the Mexican bank bailout agency
IPAB, is worth 4.066 billion pesos.

Banorte also confirmed it is still interested in acquiring
Bancrecer itself, as it believes that acquiring Bancrecer could
lead to an improvement on its minimal coverage in Mexico City and
the Southeast and Northwest of Mexico.

Bancrecer currently has 850 branches across Mexico. A deal with
Banorte would create the nation's third largets financial entity.
However, the sale process has yet to begin.


CHRYSLER: DaimlerChrysler, Canadian Auto Workers Reach Agreement
----------------------------------------------------------------
DaimlerChrysler Canada and the Canadian Auto Workers (CAW) today
announced an agreement on a voluntary incentive program for CAW
represented retirement-eligible employees as part of the
company's turnaround plan.

CAW represented employees eligible for this program must meet one
of the following criteria:

*  Age 60 with at least 10 years of pension credited service;

*  Attained 30 or more years pension credited service; and,

*  Attained age 55, but not 60, and whose combined years of age
and pension credited service total 85 points or more.

The total value of the incentive to each eligible employee will
be *$C52,500 of which:

* $C16,000 to be used toward the purchase of a selected Chrysler
Group vehicle;

* $C26,000 will be paid as a one-time cash payment; and,

* $C10,500 as an additional lump-sum to offset the tax
implications with the vehicle incentive

"Under very difficult circumstances affecting nearly 3,000
DaimlerChrysler CAW members, the union was successful in
negotiating an early retirement package that will encourage
senior people to retire and will go a long way towards protecting
the jobs of junior workers," said CAW president Buzz Hargrove.

"We are pleased to announce this special voluntary program
agreement reached through negotiations with the Canadian Auto
Workers union," said Phil Bezaire, Vice President, Human
Resources, DaimlerChrysler Canada. "Our efforts have been to
minimize the impact of potential layoffs by developing a program
that will allow us to adjust our workforce and operations so that
capacity is more in line with the current market."

The acceptance period for this incentive program for retirees
will vary depending on the timing of the actions at each of the
affected locations.

Workers and management from Mexico's troubled Chrysler operations
are closely monitoring negotiations in other countries to ensure
they are receiving equal treatment.


GRUPO DESC: Announces Unaudited Fourth Quarter 2000 Results
-----------------------------------------------------------
Desc, S.A. de C.V. (NYSE:DES; BMV:DESC) announced today its
unaudited results for the fourth quarter ended December 31, 2000.
All figures were prepared according to generally accepted
accounting principles in Mexico.

Fourth Quarter 2000 Financial Highlights

- Dollar-denominated sales posted a slight decline of 1.5%, from
US$ 620 million during the fourth quarter of 1999 to US$ 611
million during the fourth quarter of 2000.

- Operating income decreased 41.7% to US$ 42 million during the
fourth quarter of 2000 from US$ 73 million in the fourth quarter
of 1999.

- EBITDA, in U.S. dollars, during the fourth quarter of 2000 was
US$ 73 million, a 28.1% decline compared to the same quarter of
the previous year.

- 1999 figures include the poultry business and therefore are not
comparable.

                  DESC, S.A. DE C.V. AND SUBSIDIARIES

                Table 1. Unaudited Consolidated Results

(Figures in millions of constant pesos (Ps.) and U.S. dollars
(US $))

                      4Q00     4Q99(a)  4Q00 vs. FY 2000 FY 1999
                                          4Q99                       

       Sales (Ps.)(3)   5,865   6,298    -6.9%   23,485   25,330
       Sales (US$)(1)     611     620    -1.5%    2,389    2,335
     Exports (US$)(2)     246     251    -2.0%    1,036      933
   Operating Income
             (Ps.)(3)     406     750   -45.9%    2,296    3,335
   Operating Income
             (US$)(1)      42      73   -41.7%      233      307
   Operating Margin      6.9%   11.7%               9.7%    13.2%
      EBITDA (Ps.)(3)     705   1,120   -37.0%    3,435    4,474
      EBITDA (US$)(1)      73     102   -28.1%      349      405
Net Majority Income
      (Loss) (Ps.)(3)   (186)      62      N/A      289    1,935
Net Majority Income
      (Loss) (US$)(1)    (19)       8      N/A       29      175


                        2000 vs.     3Q00   4Q00 vs.
                         1999               3Q00

       Sales (Ps.)(3)      -7.3%     5,931    -1.1%
       Sales (US$)(1)       2.3%       614    -0.5%
     Exports (US$)(2)      10.9%       271    -9.2%
   Operating Income
             (Ps.)(3)     -31.2%       566   -28.4%
   Operating Income
             (US$)(1)     -24.3%        59   -28.0%
   Operating Margin                   9.5%
      EBITDA (Ps.)(3)     -23.2%       852   -17.3%
      EBITDA (US$)(1)     -14.0%        88   -16.8%
Net Majority Income
      (Loss) (Ps.)(3)     -85.1%       320   N/A
Net Majority Income
      (Loss) (US$)(1)     -83.3%        33   N/A

1. All figures in U.S. dollars for sales, operating income,
EBITDA and net income are calculated using monthly figures in
current pesos divided by the average monthly exchange rate.

2. All export figures are based on real sales invoiced in U.S.
dollars.

3. All figures in this report are expressed in constant pesos as
of December 31, 2000.

  (a) 1999 figures include the poultry business and are therefore
not comparable.


GRUPO DINA: Mexican Bourse Temporarily Suspends Trading In Shares
-----------------------------------------------------------------
The Mexican Stock Exchange announced it temporarily suspended
trading in shares of the bus and truck maker Consorcio G Grupo
Dina SA, according to a Bloomberg article published Thursday. The
announcement came after Dina said it would not make a scheduled
bond payment. In a statement, the stock exchange said that the
suspension would last no more than 60 days. The company said it
would meet with bondholders Feb. 28 to begin negotiating a
restructuring deal.

Dina was dealt a severe blow in September when Canada's Western
Star Trucks Holding Ltd., Dina's main client, canceled a contract
for 9,000 trucks.


XEROX: Shareholder Files Lawsuit Accusing Stock Fraud
-----------------------------------------------------
The law firm of Berman DeValerio & Pease LLP filed a lawsuit
today that charges Xerox Corporation (NYSE: XRX) with defrauding
shareholders by illegally pumping up the company's stock price.

The class action was filed in the United States District Court
for the District of Connecticut. The complaint seeks damages for
violations of federal securities laws on behalf of all investors
who bought Xerox stock between February 15, 1998 and February 6,
2001 (the "Class Period").

Berman DeValerio & Pease has represented defrauded investors in
class actions for nearly two decades. To review the complaint and
learn more about becoming a lead plaintiff, visit our Website at
http://www.bermanesq.com.

The complaint says that Xerox and several of its top officers
reported false financial results during the class period, failing
to adhere to the standard accounting practices the company
claimed to follow. Among other things, Xerox is charged with:

--Improperly recognizing revenues from its leasing operations by
booking up front those lease payments attributable to future
supplies and services.

--Boosting short-term results by overstating the value of future
payments from leases originated in developing countries.

--Failing to write off mounting bad debts and improperly
classifying transactions in its Mexico operations, which resulted
in $119 million in charges in the second and third quarters of
fiscal 2000.

Xerox issued a statement about the "irregularities" in Mexico on
June 16, 2000, falsely portraying them as an aberration
perpetrated by rogue executives. But on February 6, 2001, a Wall
Street Journal article reported allegations of accounting fraud
that went far beyond Mexico. Meanwhile, Xerox shares fell from as
high as $124 a share during the Class Period to just $4.43 a
share, resulting in hundreds of millions of dollars in losses to
Class members. The company's accounting practices are now the
subject of a Securities and Exchange Commission (SEC)
investigation.


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P A R A G U A Y
===============

ANTELCO: MSDW Refuses To Manage Privatization
---------------------------------------------
Paraguay's National Reform Secretariat (SNRE) is now preparing a
new process for selecting an advisory investment bank. The firm
is seeking strategy recommendations for privatization of
Paraguay's incumbent telecom operator Antelco. The move follows a
decision by U.S.-based investment bank Morgan Stanley Dean Witter
(MSDW) to decline a contract for managing the privatization
process. Oscar Stark, Antelco director, told Business News
Americas of the developments last Thursday.

In the previous selection process, MSDW offered to manage the
privatization for a US$1.5-million fee in addition to a
commission equivalent to 1 percent of Antelco's sale price. ABN
AMRO also bid for the contract but was eliminated because its
technical offer fell short of SNRE's requirements.

The World Bank, which has put up US$12.5mn to help finance
Paraguay's privatization program, has final say on the selection
process.



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

CANTV: Retirement Program Translates Into Losses
----------------------------------------------
Cantv, one of Venezuela's largest telecommunications operators,
posted losses totaling BS$90.1bil in 2000, according to an
article in the South American Business Information published
Thursday. The company attributed its losses to the voluntary
retirement program, which imposed extraordinary expenses of
Bs$110,6bil. The original goal of the program was to lay off
3,725 employees and save the company some US$85mil.

In 2000, Cantv registered an operating income of Bs$1,824,9bil
(Bs$1,946,7bil in 1999), with an increase from Internet
increasing by 24.1 percent and from cellular telephony by 1.4
percent.

Income from local telephone calls was Bs$650.1bil, national long
distance Bs$85bil, international long distance Bs$128,5bil, and
public telephone Bs$108,4bil.

Cantv's cellular customer base grew 44 percent to 1.7mil, while
traffic increased by 39.9 percent.

Customers using its Internet access services increased by 30
percent and Internet services was up 69.5 percent. In addition,
the company also bought back 74mil shares, or 7.4 percent of its
equity and also distributed dividends of Bs$64bil in the same
year.

Its Ebitda was up 2 percent cumulating Bs$748bil. Digital
technology spread to 80 percent of the network and installed
lines were 3.07mil, of which 2.6mil active, with the public
telephone reaching 85,016 boots.

Cantv has reportedly come out in support of mobile telephony
tariff benchmarking as proposed by Conatel, the national telecoms
commission. Conatel would like to see a drastic cut in the
charges for calls from fixed to mobile lines. Cantv's mobile
subsidiary Movilnet has been offering 50 percent reductions in
its rates since December 2000 as part of a promotion for Cantv
fixed lines to Movilnet mobiles.


MAVESA S.A.: CNV Approves Required Changes To Proposed Offers
-------------------------------------------------------------
Mavesa, S.A. (NYSE: MAV) today announced that the Venezuelan
National Securities Commission ("Comision Nacional de Valores")
(CNV) yesterday stated that Primor Inversiones, S.A. had made the
changes to the proposed tender offers to purchase all of the
outstanding shares and American Depository Shares of Mavesa, S.A.
requested by the CNV earlier this week.

Although the proposed offers have now been approved by the CNV,
Mavesa and its counsel, together with Primor and its counsel,
continue working with the United States Securities and Exchange
Commission to implement the modifications requested by the CNV.

Holders of Mavesa's shares and ADSs are advised to read Mavesa's
solicitation/recommendation statement in connection with the
offers when it becomes available because it will contain
important information. Holders of Mavesa's shares and ADSs may
obtain Mavesa's solicitation/recommendation statement and other
documents when they are filed with the United States Securities
and Exchange Commission from the SEC's website at www.sec.gov or
from Mavesa.




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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