/raid1/www/Hosts/bankrupt/TCRLA_Public/010221.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

         Wednesday, February 21, 2001, Vol. 2, Issue 36

                           Headlines



B A R B A D O S

LIAT: Ceases To Pay Debts When Confronted With Competition


B O L I V I A

COTEL: To Have New Management


B R A Z I L

AMBEV: Completes the Acquisition of Cympay
COPENE: Delay In Sale Process Hinders New Investments
SARAIVA LIVREIROS: Market Speculation Is Without Merit


C H I L E

GENER: Divides Business Into 4 Geographical Areas


C O L O M B I A

AVIANCA: Prepares For A Possible Merger


M E X I C O

BANCRECER: Scotiabank Inverlat Yet To Decide On Bid
BANCRECER: Advanced Banking System Increases Attraction
BUFETE INDUSTRIAL: Still In The Hunt For A New Partner
CHRYSLER: Plant Closures May Cost 1,000 Employees' Jobs
CINTRA: Mexicana de Aviacion Likely To Cancel Contract With SEAT
GRUPO DINA: Bondholders' Meeting Set For February 28 In NYC
GRUPO DINA: Trading of Grupo Dina Securities Suspended on NYSE
IMSA: Posts 14-Percent Increase In Sales Through 2000
PEMEX: Mexican President Fox Commences Restructuring
UNEFON: TV Azteca To Sell Off Stake In Telephony Group


P A R A G U A Y

ANTELCO: Telefonica Eyes Paraguayan Incumbent Telecom Operator


V E N E Z U E L A

CORIMON: In Discussions To Sell Position In Pralca
MAVESA: Announces Cash Dividend


     - - - - - - - - - -


===============
B A R B A D O S
===============

LIAT: Ceases To Pay Debts When Confronted With Competition
----------------------------------------------------------
Financially-strapped LIAT Limited does not pay its debts every
time it is confronted with stiff competition. The complaint was
leveled by Allen Chastanet, Vice-President of Marketing and Sales
at rival company Air Jamaica, according to a Caribbean News
Agency report released last week. Speaking at a Rotary Club of
Barbados South luncheon on the importance of service to the
Caribbean's tourism industry, Chastanet said, "LIAT has developed
some bad habits."

"Every time that LIAT is under competition, they stop paying
their taxes, they stop paying their departure tax and their
landing fees. And they use these monies to fight off the
competition.

"And what happens now, the airline is in more debts ... and guess
who has to pay the bills... the customer and the governments,"
Chastanet added.

LIAT, according to figures available up until November 2000, owes
Caribbean governments over 20 million Eastern Caribbean dollars
(US$7.4 million) in landing and navigational fees.



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

COTEL: To Have New Management
-----------------------------
According to a South American Business Information report Friday,
Bolivia's largest fixed line operator Cotel will have a new
management. The move follows the intervention measures being
implemented by the Bolivian government. Cotel's case is critical
for the telecoms policy adopted by the government, which recently
revealed it would hold another international tender offer for the
fixed-line operator after its first attempt failed when none of
the bidders presented a bid. Meanwhile, it has also issued norms
to reorganize the telecoms market. Both the intervention and the
norms reportedly are heavily contested by other cooperatives.



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

AMBEV: Completes the Acquisition of Cympay
------------------------------------------
COMPANHIA DE BEBIDAS DAS AMERICAS -- AMBEV (NYSE: ABV, ABVc;
BOVESPA: AMBV4, AMBV3), concluded its due diligence on February
14, 2001 and has exercised its option to acquire 95.437% of the
total capital of Cerveceria y Malteria Paysandu S/A (Cympay).
Shares were purchased from the German group Oetker (Eufra Holding
AG) for US$43.5 million, including US$15.8 million in debt. The
purchase price is based upon the January 31, 2001 financial
statements.

Through this acquisition, AmBev's Uruguayan beer market share
will grow to 48%, adding the Nortena and Prinz brands to its
portfolio. AmBev's malt business, which represents 3% of net
sales on a consolidated basis (excluding this acquisition), will
be further strengthened by Cympay's malt production.

Cympay had net revenues of US$ 35 million in 2000 (fiscal year
ending June 30th), with 266 employees and operates in three
business segments:

- Beer:  Cympay has 24% of the beer market in Uruguay.  It sells
the Nortena and Prinz brands, accounting for 26% of net sales.  
The beer business has annual production capacity of 300,000 hl
and utilization was 62% in 2000;

- Malt:  Production totaled 81,000 tons in 2000, which represents
69% of net sales; and

- Mineral Water:  Cympay owns 78.42% of Fuente Matutina S/A, with
an 8% market share in Uruguay.  Sales volume of mineral water was
115,000 hl in 2000, representing 5% of net sales.


COPENE: Delay In Sale Process Hinders New Investments
-----------------------------------------------------
Several new investments in the production of raw material for the
petrochemicals sector have suffered a setback as the sale process
of Companhia Petroquimica do Nordeste (Copene) has been delayed.
According to a South American Business Information report
released Friday, one of the projects is a styrene plant, which
Basf and Dow Quimica were planning to set up. The plant requires
investments of US$250 million. Another project is slated for the
production of polypropylene and polyethylene, which Odebrecht is
planning to develop in partnership with Petrobras. Odebrecht is
just waiting for the definition to develop the said project. On
the other hand, Ultra, one of the bidders for the petrochemicals
company, also wants to set up a plant to produce terephthalic
acid at Camacari complex, Bahia state.


SARAIVA LIVREIROS: Market Speculation Is Without Merit
------------------------------------------------------
Word on the street says the Brazilian audio and book retailer
Saraiva Livreiros Editores is close to a takeover by a foreign
group, Brazil Financial Wire reported Friday. The interested
foreign company is rumored to be U.S. company Barnes & Noble.
However, Joao Luiz Hopp, finance and investor relations director
with Saraiva, rebuffed the recent speculation as groundless,
saying that trading in the company stock has been regular in the
last few months.

"As liquidity is low, share volatility increases," Hopp said.

He also denied that a current equity restructuring at Saraiva is
aimed at divesting the company. "Saraiva has tried to come closer
to investors for years, a move that has given the company further
transparency," he explained.



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

GENER: Divides Business Into 4 Geographical Areas
-------------------------------------------------
AES-controlled Chilean power company Gener announced it had its
business divided into 4 geographical areas, South American
Business Information reported Friday. These areas are Coast
(Ventanas), Andes cordillera (water resources), Central area
(Electrica Santiago) and Northern area (Norgener). Gener,
according to a strategy by AES, is going to sell off its non-
electrical assets, where it holds stakes:

* Puerto Ventanas - 60.77 percent

* Pacsa - 97.9 percent

* Agunsa - 26.7 percent

* CCNI - 13 percent

* Portuaria Cabo Froward - 21.18

* Compania Carbones del Cesar - 100 percent

* Carbones Colombianos del Cerrajon - 60 percent

* Explotaciones Sanitarias - 51 percent

* GasAndes -  13 percent

However, the sale of these assets does not mean breaking them up
but rather seeking the best opportunities to capitalize on their
sale, a Gener source stated in a previous TCR-LA report. So far,
AES has reduced Gener's work force by 10 percent. The
multinational company also changed Gener's headquarters from
Santiago's downtown to Apoquindo.



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

AVIANCA: Prepares For A Possible Merger
---------------------------------------
Struggling Colombian airline Aerovias Nacionales de Colombia
(Avianca) announced in a report by The Financial Times published
Friday that it has reached further agreements to restructure its
costs as it readies for a possible merger with Aces, its biggest
domestic competitor.

The company has now arranged a new fleet rental deal which
reduces the financial impact of the leasing by 27 percent as well
as allowing 7 years (three free) for the payment of leasing
quotas that have gone previously unpaid. AVIANCA has also
restructured its debt with Bank of New York-listed note holders
as it had already done with its pension debts with the civil
aviators savings bank.

AVIANCA announced last month it was in talks with Aces, an
expanding Colombian airline, over a possible "equity
integration".

Its major shareholder is Colombia's Valores Bavaria conglomerate,
which injected 50 billion pesos into the struggling airline in
1999 and which is reported to be planning a further injection of
capital.



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

BANCRECER: Scotiabank Inverlat Yet To Decide On Bid
---------------------------------------------------
Grupo Financiero Scotiabank Inverlat hasn't ruled out bidding for
government-intervened Mexican bank Bancrecer when IPAB puts it on
the auction block in the next several weeks. In a
Reforma/Infolatina report published last week, Inverlat sources
said that the Canadian bank awaits further information on the
sale details as well as the expected price before it decides on
its position.


BANCRECER: Advanced Banking System Increases Attraction
-------------------------------------------------------
The Robert Alcantara group, former owners of government-
intervened Bancrecer, created an advanced technology system for
the Mexican bank called the Altamira system, South American
Business Information reported Friday. The creation of the system
cost the group some US$120 million. However, it also lost over
US$900 million in the Mexican financial crisis five years ago and
had to offload the bank on the government.

The Altamira universal banking system, which is also used
worldwide by Spanish banking giants in Mexico, BSCH and BBVA, and
by the Mexican banks they acquired, makes Bancrecer all the more
attractive as re-privatization looms ahead. Currently, Bancrecer
has 758 branches, 955 cash machines and 6,400 employees as well
as Bancrenet (Internet banking) and Bancretel (telephone
banking).


BUFETE INDUSTRIAL: Still In The Hunt For A New Partner
------------------------------------------------------
Heavily-indebted Mexican construction firm Bufete Industrial is
still looking for a new financial partner, according to a
Reforma/Infolatina report published Friday. Bufete Director of
Finance Erick Quinones announced the company is suing
Transportacion Maritima Mexicana (TMM) over a $64-million payment
TMM has accepted on behalf of a joint venture between
subsidiaries of the two companies.

The company has reportedly sought deals with Mexico's Grupo
Iconsa and Houston, Texas-based Grupo Evron, but its bank
creditors shunned the proposals. Currently, two groups have
expressed interest in Bufete and the company is hoping to close a
deal with these two. Quinones refused to confirm or deny reports
that Grupo Serbo's Sergio Bolanos is close to assuming control of
the company.


CHRYSLER: Plant Closures May Cost 1,000 Employees' Jobs
-------------------------------------------------------
At least 1,000 employees will lose their jobs as a result of auto
giant DaimlerChrysler's decision to shut down two production
lines at a plant in the Mexican city of Toluca. The announcement
was made by state of Mexico Industry and International Promotion
ministry senior official Gabriel Villasenor in a La
Jornada/Infolatina report published last week. According to
Villasenor, the company is closing its automatic transmission
production line later this year, which employs 200 workers. Next
year, it will also be shutting down its engine assembly plant,
where it employs 800 workers. The company and the local
authorities have reportedly set up two working teams with the aim
of finding new jobs for Chrysler workers in Toluca.


CINTRA: Mexicana de Aviacion Likely To Cancel Contract With SEAT
----------------------------------------------------------------
Mexicana de Aviacion, the airline company held by Cintra, is
contemplating cancellation of its contract with Servicios de
Apoyos en Tierra (SEAT), also held by Cintra, South American
Business Information said Friday. Should the airline decide to go
through with its threat, at least 1,900 employees could lose
their jobs at SEAT.

SEAT is a ground-staff operation and link up with other groups
offering cheaper and more reliable services. Mexicana has been
confronted with many complaints from passengers about lost
luggage, etc. SEAT is aware of these complaints and while not
assuming total blame is to sign a collective agreement aimed at
ensuring higher quality.


GRUPO DINA: Bondholders' Meeting Set For February 28 In NYC
-----------------------------------------------------------
Consorcio G. Grupo Dina, S.A. de C.V. (NYSE: DIN, DIN.L), a
leading Latin American producer of trucks, today announced that a
meeting is scheduled for 9.30 am (local time) on February 28,
2001 for the holders of Dina's 8% subordinated debentures due in
2004. The purpose of the meeting is the restructuring of the
Company's debt.

Mr. Mauricio Mendoza, Dina's General Counsel, stated that the
meeting will be held at the offices of Gibson, Dunn & Crutcher
LLP, located on the 48th. floor at 200 Park Avenue, New York
City.

The bondholders have been notified in accordance with sections
502 and 512 of the indenture governing the debentures, which
establishes, among other things, that the holders of a majority
of the aggregate principal amount of the debentures may determine
the course of action to be taken by the trustee.

Those bondholders who are unable to attend the meeting in person
may participate through a conference call. The dial in numbers
will be 1-800-457-0182 for those calling from the United States,
and 1-775-785-1940 for those calling from abroad.


GRUPO DINA: Trading of Grupo Dina Securities Suspended on NYSE
--------------------------------------------------------------
Consorcio G. Grupo Dina, S.A. de C.V. (NYSE: DIN, DIN.L), a
leading Latin American producer of trucks, was informed today
that the Committee of the Board of Directors of the New York
Stock Exchange (NYSE) suspended trading of its shares (NYSE: DIN,
DIN.L), and its 8% Convertible Subordinated Debentures due
8/08/04 (NYSE: DIN 04).

The action was taken because the company's market capitalization
has remained below US $15 million over a 30-day trading period,
and the value of Dina's shares has remained at less than US $1
over a 30-day trading period.

Grupo Dina's Chief Executive Officer, Mr. Gamaliel Garcia, said
that due to circumstances affecting the company in recent months,
which have been previously publicly disclosed, Dina could not
prepare a viable business plan that would bring it into
compliance with the required minimum quantitative continued
listing criteria within 18 months, as required by the NYSE.


IMSA: Posts 14-Percent Increase In Sales Through 2000
-----------------------------------------------------
Mexican steelmaker Grupo IMSA announced an increase of 14 percent
in sales through 2000 to total 21.212 billion pesos, according to
a South American Business Information report Friday. However,
profits were down by 45 percent, totaling 1.367 billion pesos
(operating profits fell 24.3 percent to 2.171 billion pesos). The
company attributed the decrease in profits to depressed
international steel prices, the overvaluation of the peso against
the dollar and a dramatic increase in energy costs. The company
also reduced its debt by US$163 million (to total US$810 million
net) as part of its restructuring, and made a profit on
financing.


PEMEX: Mexican President Fox Commences Restructuring
----------------------------------------------------
Mexican president Vicente Fox has begun restructuring of Mexican
state oil company Petroleos Mexicanos (Pemex), according to a
South American Business Information report Friday. As a start, he
introduced a modernizing package, which includes a new tax regime
with oil separate from industrial activity. Also, four top
Mexican businessmen, Carlos Slim, the billionaire owner of
telecoms giant Telefonos de Mexico (TELMEX), Lorenzo Zambrano,
chairman and CEO of No. 3 cement company Cementos de Mexico,
Alfonso Romo, chairman of specialty vegetable-seed producer Savia
and executive Rogelio Rebolledo Rojas, were brought onto the
board. Additionally, five union members will serve on the Pemex
board.

General director Raul Munoz Leos has reportedly established three
key strategies - increasing hydrocarbon reserves, becoming faster
to react and adapt to world oil sector dynamics and reaching high
levels of performance. Munoz believes that the restructuring of
Pemex should produce some $3 billion in savings in the next few
years.

Pemex, the world's fifth largest oil producer, is restructuring
its operations so that it can operate more like a publicly-traded
company and improve its competitiveness with rival oil firms.


UNEFON: TV Azteca To Sell Off Stake In Telephony Group
------------------------------------------------------
In an effort to concentrate on content generation and
communications over telecommunications while strengthening its
financial situation, TV Azteca will get rid of its holdings in
Unefon. In an article published by the South American Business
Information Friday, the Mexican TV group TV Azteca has officially
requested the right to sell of its stake in telephony group
Unefon. The company must offer its own shareholders the right to
retain Unefon shares through commercial papers structure but now
wants Unefon to sail alone. If Unefon is not sold to any other
company, shareholders will be able to exercise options on shares,
which total US$177 million in December 2002.


UNEFON: Reports 4Q00 and Full Year 2000 Results
-----------------------------------------------
Unefon, a Mexican mobile telephony operator focused on the mass
market (BMV: UNEFON), announced today that it added more than
95,000 subscribers in the fourth quarter of 2000, a 163 percent
increase compared to the level at the third quarter; Unefon had
156,000 customers at year-end. Halfway through the first quarter
of 2001, the Company has added another 95,000 subscribers.
Currently Unefon has more than 250,000 subscribers and is adding
12,000 new subscribers per week.

Adrian Steckel, Unefon's Chief Executive Officer noted, "Unefon
achieved all its key operating objectives during the year. We
have now built a critical mass of subscribers and market
coverage. With continued rapid subscriber growth in the first
part of 2001, Unefon is well on its way of reaching its next
target of 450,000 subscribers, which we estimate is our EBITDA
breakeven point."

Unefon's strategic alliances with Grupo Elektra and TV Azteca
allow it to preserve cash and penetrate the market rapidly. These
arrangements minimize distribution and marketing costs and
together with the Company's policy of low handset subsidy,
translate into a low acquisition cost, key to being successful in
the Mexican mass market.

Providing competitive pricing is an important element in the
Company's commercial strategy. Today Unefon's rate is the lowest
in the marketplace. "Our target market is the Mexican mass
market, where home phone penetration is low and Unefon is used as
a fixed line substitute. Our pricing is meant to be attractive to
our core customer base," Mr. Steckel added.

Operating Highlights

                           Year 2000            4Q 2000
    Revenue             Ps 327.8  million   Ps 167.5 million
    EBITDA              Ps(214.1) million   Ps(182.3) million

                                       Year 2000
    Covered Cities                           12
    Customers (Ending Balance)          155,871
    ARPU*                                Ps 190

    * Refer to ARPU section for methodology explanation.

Rollout of the Network During the Year

Unefon began commercial operations on February 1, 2000, with the
inauguration of service in Toluca. During the fourth quarter,
Unefon launched operations in six additional cities, including
Guadalajara and Monterrey, bringing the total to 12 cities. In
addition, the Company increased its coverage area in Mexico City,
and now offers service throughout 85 percent of the metropolitan
area.

City Launching Current Date Coverage

1Q2000 Toluca Feb 1, 2000 100% Acapulco Mar 1, 2000 100%

2Q2000 Leon May 8, 2000 100% Mexico City May 18, 2000 85%

3Q2000 Queretaro Aug 28, 2000 100% Aguascalientes Sep 28, 2000
100%

4Q2000       Puebla              Oct 8, 2000         100%
             Guadalajara         Nov 19, 2000         80%
             Monterrey           Dec 3, 2000          75%
             San Luis Potosi     Dec 26, 2000        100%
             Torreon             Dec 26 2000          70%
             Morelia             Dec 29 2000         100%

Shalom Manova, Unefon's Chief Operating Officer, noted, "The
teamwork and commitment of the entire Company has enabled Unefon
to build a network in record time. We have stuck with our
coverage strategy, focusing on investments in transmission
equipment in urban areas, which allows us make the most efficient
use of our network assets."

"Unefon is currently constructing its network in seven additional
cities, and we expect to begin service in two additional cities
before the end of the first quarter," Mr. Manova added.

ARPU Level Within Forecast Range

The average revenue per user (ARPU) includes revenue from sale of
airtime and interconnection fees for incoming traffic.
Traditionally, ARPU is calculated based on minutes of use times
the applicable tariff for calls divided the by number of
subscribers at the end of the period. In the case of Unefon, this
methodology would take into account the free minutes given to
customers at the time of their activation. As a result, the ARPU
levels calculated by this method would overstate the monthly
revenue that the Company receives per subscriber. Additionally,
given the high rate of growth in subscribers (relative to its
base) and therefore the high level of free minutes that the
Company is experiencing, this methodology would not be useful in
giving a realistic approximation of the revenue generated per
subscriber.

Accordingly, the Company utilizes an alternative methodology that
will use until it reaches a stable growth stage. Under this
method ARPU is defined as outbound ARPU plus inbound ARPU.
Outbound ARPU is calculated as total revenue received from the
sale of prepaid cards divided by the average subscriber level of
the four weeks prior to calculation date. Inbound ARPU is defined
as revenues from interconnection divided by subscriber level at
time of calculation. The Company tracks its ARPU on a weekly
basis.

As of January 2001, ARPU according to this definition was Ps. 167
per month.

Distribution Network Also Grows

A central element of Unefon's marketing strategy is the constant
growth of its distribution network. The strategic alliance with
Grupo Elektra (NYSE: EKT, BMV: ELEKTRA) has enabled Unefon to
have an immediate national distribution. Elektra operates more
than 850 stores throughout Mexico. In the 12 cities where Unefon
is currently operating, Elektra provides Unefon 315 points of
sale.

Unefon has also reached distribution agreements with such diverse
chains as Walmart, Gigante, Auchan, Oxxo, 7 Eleven, Farmacias
Benavides, and Farmacias del Ahorro, as well as many independent
distributors in each city. In addition, as of November, Unefon
began distributing prepaid cards through the automatic tellers
machines of Bital.

At the end of 2000, Unefon had nearly 5,500 points of sale, of
which 1,500 sold both handsets and prepaid cards. Through this
distribution network, Unefon can provide its customers with easy,
convenient access to its services.

Other Corporate Developments

During the fourth quarter, the Company completed its IPO on the
Mexican Stock exchange (Bolsa). The IPO raised a total of Ps. 916
million at an offering price of Ps. 5.20 per share. The number of
shares sold in the IPO represent 7 percent of Unefon's equity
capital, or 6.3 percent on a fully diluted basis. Based on the
IPO price, the market capitalization of Unefon was US$ 1.6
billion. As of February 16, 2001, the share price was Ps. 6.45,
implying a market capitalization of US$1.9 billion.

Unefon also reached an agreement for the modification of
contracts between the Company and subsidiaries of American Tower
Corporation (ATC). As part of the modification of the contracts,
Unefon received a US$ 7 million fee of which US$ 4.5 million was
collected and recognized in fourth quarter results as Other
Income. The agreement between Unefon and ATC regarding the
construction of towers was expanded from 400 to 1,000 towers.

Full Year Results

For the period from February 1 (the beginning of operations)
through December 31st, the Company registered revenue of Ps. 337
million, of which 81 percent resulted from sale of handsets.
Variable costs were Ps. 405 million, of which 91 percent resulted
from handset sales.

2000 Q4 Pesos* USD** Pesos* USD**

Revenues
Handsets sales     272.4   28.3         139.9   14.6
Service revenue     30.6   30.6          14.2   14.2
Other                4.9    0.5           3.3    0.3
                   337.4   35.1 100%    177.4   18.5   100%

Variable costs
Handsets           367.2   38.2  109%   205.7   21.4   116%
Cost of services    28.1    2.9    8%    21.1    2.2    12%
TV advertising       9.9    1.0    3%     9.6    1.0     5%
                   405.2   42.2  120%   236.4   24.6   133%

Contribution      (67.8)   (7.1) -20%   (59.0)  (6.1)  -33%
Fixed expenses     149.4   15.5   44%   123.3   12.8    70%
EBITDA           (217.2)  (22.6) -64%  (182.3) (19.0) -103%

(*) Peso figures are expressed in millions of constant December
31, 2000 Pesos

(**) USD figures are expressed in millions. Foreign exchange rate
used for translating peso figures into USD: Pesos 9.6098/ USD 1

Gerardo Ibarra, Unefon's Chief Financial Officer, noted, "The
revenue reported is consistent with our expectations for the
initial period of operations and the build up of subscribers. As
the Company continues to grow its customer base, service revenue
will become much more important in the total mix of revenues."

Fixed expenses incurred by the Company totaled to Ps. 149 million
and consisted principally of personnel expense, lease payments,
professional fees, and certain advertising expenses (not
including TV advertising).

Through January 31, 2000 Unefon was in its pre-operating stage,
and all expenses incurred through that date were capitalized in
accordance with generally accepted accounting principles (Mexican
GAAP). Beginning February 1, 2000, when the Company began
operations in Toluca, the Company recognized in its results the
income and expenses relative to cities where operations had begun
and all the revenue, costs and commissions related to handset
sales. Following Mexican GAAP, expenses in cities in a pre-
operating phase as well as a portion of corporate expenses
(personnel expenses, lease payments, etc.) were capitalized as
pre-operating expenses. The latter were capitalized based on the
proportion of covered POPs relative to the POPs that the Company
expects to cover when its network is completed. The Company will
no longer capitalize any corporate expenses and expects to stop
capitalization of pre- operating expenses for cities under
construction once it has concluded its initial deployment in 19
cities.

Unefon generated an EBITDA (operating cash flow) loss of Ps. 217
million which was mainly a result of the high fixed expenses
relative to current revenue levels. Given the current pace of
growth (12,000 weekly net additions), the Company estimates that
it will achieve a large enough subscriber base in order to reach
its EBITDA breakeven point during the current year. The EBITDA
breakeven point is estimated to be approximately 450,000
subscribers.

Unefon generated other income of Ps. 51 million, which consists
principally of the payment from ATC and reimbursement to the
Company of an excess payment of political risk insurance premium
relative to the Company's financing agreement with Nortel
Networks.

Unefon recorded a non-cash tax credit of Ps. 70 million.
Currently the company is generating losses, which creates tax
losses to be amortized in future periods. The net loss for the
year was Ps. 237 million.

Fourth Quarter Results

Net revenue was Ps. 130 million in the fourth quarter of 2000 and
the Company recorded an EBITDA loss of Ps. 182 million. This loss
is largely explained by handset promotions over the December
season and by the high level of fixed expenses relative revenue.

Regarding handset promotions, the Company's policy has been to
manage handset subsidies to maximize subscriber gains; it has
decided to subsidize handset sales during specific weeks of the
year, when consumer spending is traditionally high. Such was the
case during December 2000, impacting Company results. After the
Christmas holidays and during the first days of January Unefon
launched another promotion with a high subsidy in order to take
advantage of holiday spending.

Capital Expenditures and Capital Resources

As of December 31,2000, the Company recorded total investments in
fixed assets of Ps. 2,464 million (US$ 257 million), of which Ps.
1,961 million (US$204 million) represent equipment that comprises
the telephone network. In addition, the Company has accumulated
capitalized pre-operating expenses of Ps. 636 million relative to
1998, 1999 and 2000.

Unefon has supplier and financing contracts with Nortel Networks.
The finance agreement is divided into two portions. The initial
portion, Tranche A, is for US$ 408 million, and a subsequent
Tranche B is for US$ 210 million. As of December 14, the Company
had borrowed US$ 327 million under Tranche A, made a mandatory
pre-payment of US$ 23 million from the IPO proceeds, and thereby
reduced balance of debt to Nortel Networks to US$ 304 million.

Most of the remaining un-drawn portion of Tranche A (US$ 81
million) is committed for payments to outstanding purchase orders
to Nortel Networks. Availability of the second portion is subject
to the sale by Nortel Networks, on a dollar for dollar basis, of
Tranche A to third party investors. Syndication efforts have been
initiated by Nortel Networks, with the assistance of Unefon.

Total net proceeds from the IPO completed on December, 2000 were
Ps. 896 million. After the mandatory payment established by the
Nortel Networks and payment of other outstanding debts and
payables, Unefon ended the year with Ps. 530 million in
unrestricted cash.



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

ANTELCO: Telefonica Eyes Paraguayan Incumbent Telecom Operator
--------------------------------------------------------------
Believing Antelco could be added to its asset portfolio, managers
of Telefonica (Spain) expressed interest in privatizing
Paraguayan telecommunications firm Antelco, South American
Business Information reported Friday.

TCR-LA previously reported that Antelco's privatization could be
postponed for a few months due to Morgan Stanley Dean Witter's
(MSDW) decision to decline management of the transition.
According to MSDW, the team that made the proposal for Antelco
was dissolved and its proposal could not be sustained by others.

Paraguay's National Reform Secretariat (SNRE) is now preparing a
new process for selecting a new investment bank to recommend the
best privatization strategy for the company. Already qualified
for the tender are ABN Amro and Salomon Smith Barney.



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

CORIMON: In Discussions To Sell Position In Pralca
--------------------------------------------------
Venezuela's leading paint maker Corimon is in talks with Pequiven
for a possible sale of a 26-percent stake in local alcohol
producer Pralca. The move was revealed by Corimon Executive
President Mauricio Gomez in a Reuters report released last week,
who also said that the deal is part of the company's corporate
restructuring.

"We want to get out of anything that is not related to our core
business," Gomez said. "Pequiven is evaluating if it is a good
opportunity to buy the stake." Pequiven is the petrochemicals
branch of state oil company Petroleos de Venezuela (PDVSA), which
already owns 49 percent of Pralca.

However, before the sale could go ahead, Corimon had to complete
negotiations with the International Finance Corp (IFC), according
to Corimon President Carlos Gill. IFC is the private sector
lending arm of the World Bank, which had financed its purchase of
a 10 percent stake in Pralca worth around $18 million.


MAVESA: Announces Cash Dividend
-------------------------------
Annual Meeting Held - Shareholders Approve Financial Statements

Mavesa, S.A. (NYSE: MAV), a leading manufacturer, marketer and
distributor of branded consumer goods in Venezuela, announced
today the results of the company's annual shareholders' meeting
held on February 16.

Shareholders at the annual meeting approved the Company's
financial statements for fiscal year 2000 and the distribution of
a cash dividend of Bolivars 6,224 million (equivalent to US$8.8
million), to be paid in four quarterly installments of Bs.
0.432571 per share or Bs. 25.95 per ADR. The payment date will be
set later by the Company.

Values for bolivars in this release are in numbers reflecting the
value of the Bolivar vis a vis the dollar on February 16, 2000.
The foreign exchange rate on that date was Bs. 703.50 to one U.S.
Dollar, but it is expected to change by the time the cash
dividends are paid. Based on the exchange rate on February 16,
the quarterly dividend is equal to US$0.0368 per ADR, or US$3.689
per 100 ADRs.

With fiscal 2000 revenue of US$424.3 million, Mavesa's sales and
distribution system services more than 50,000 stores throughout
Venezuela, representing 90 percent of all domestic stores that
sell consumer food and cleaning products. Marketed under the
Mavesa, Las Llaves, La Torre del Oro, Nelly, Rikesa, Margarita,
Yukery, Pampero, and Toddy names, among others, the company's
products hold leading shares in the Venezuelan take-home markets.
Founded in 1949, Mavesa employed 2,656 people at the end of
October 2000. Besides the Caracas Stock Exchange, the company's
ordinary shares are also listed in Venezuela on the Maracaibo
Stock Exchanges. The company's ADRs, at a ratio of 60 ordinary
shares per ADR, are traded on the New York Stock Exchange.



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
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