TCRLA_Public/010309.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

            Friday, March 9, 2001, Vol. 2, Issue 48



CESP: S&P Rates US$700M Note B+; Placed On CreditWatch
CVRD: To Review Docenave Activities
GLOBO CABO: Broadens Client Base By 60 Percent In 2000
GLOBO CABO S.A.: Company Profile


AHMSA: Will Not Increase Production Volume This Year
ASUR: Former Tribasa Stake To Be Sold In Several Weeks
ASUR: Entering Negotiations With Selected Potential Operators
BANCRECER: IPAB Sells 9,793 Bancrecer Mortgage Portfolios
BUFETE: Mendoza Blames Pemex For Financial Difficulties
ENTREGAMOS: Ceases To Operate In Mexico
GRUPO PROTEXA: Attempts To Reach Agreement With Creditors
PEMEX: Energy Ministry Official Defends President's Appointments


MADECO: Reports 16.8B Peso Unconsolidated Net Loss In 2000
MAVESA: Board Hands Down Regulations During Tender Offer Period

     - - - - - - - - -


CESP: S&P Rates US$700M Note B+; Placed On CreditWatch
Standard & Poor's--March 7, 2001-- Standard & Poor's assigned its
single-'B'-plus foreign currency rating to Companhia Energetica
de Sao Paulo's (CESP) US$700 million medium-term note program.
The rating has also been placed on CreditWatch with developing

The notes are senior-unsecured obligations of CESP. CESP is
Brazil's and Latin America's third-largest electricity generator,
providing electricity to the four main distribution companies
serving the key State of Sao Paulo. Debt guaranteed by the State
of Sao Paulo or the government of Brazil (approximately 75% of
total debt) is expected to diminish over time. The rating
reflects CESP's current business and financial profile and does
not incorporate credit enhancement from its status as a state-
owned company. The rating reflects:

-- A high nominal debt service burden -- As a result, gross cash
flow interest coverage is low at approximately 1.8 times
estimated for Dec. 31, 2000; comparing cash flow to the stock of
debt, the debt payback period is lengthy at 15 years.

-- High foreign currency exposure -- CESP is exposed to
fluctuations in the value of the real, in which it derives its
earnings, while about 75% of its debt is in foreign currencies.

-- Fundamental uncertainties regarding the structure and
regulation of the power market -- CESP sells all of its assured
energy to its distribution customers under initial contracts that
end in 2006. Brazil is forecast to be short of power, and the
buying and selling of energy post-2006 should be at a market
rate. These conditions suggest a seller's market, which should
benefit CESP; but the regulation for pricing and contracting for
power is untested.

-- Potential environmental and associated litigation concerns --
CESP's inability to raise the water level behind the Porto
Primavera hydroelectric plant to the design height of 259 meters
from the currently licensed 257 meters highlights a source of
regulatory risk. While the affect on capacity from the two-meter
differential should be fractional, a related issue is the
possibility of additional, unexpected expenditures as the other
plants undergo environmental relicensing.

These weaknesses are offset by the following strengths:

-- CESP's generation sources are fairly new, in good condition,
and evidence strong availability rates. CESP has always generated
more than its designated "assured energy". As a hydro producer,
CESP has a negligible marginal cost of production.

-- A tight energy market suggests that for the near-term future,
CESP should have no trouble in finding buyers for its output.

-- The market, consisting of the greater Sao Paulo metropolitan
area and, eventually, the south-southeastern region of Brazil, is
large and growing; this region is Brazil's richest and most

-- CESP participates in a risk-sharing mechanism with all other
hydro plants in the nation to minimize the risk of poor hydro
conditions occurring in any one hydrological basin. All of CESP's
generating plants are hydroelectric, and four stations generating
98% of CESP's energy are located either within or near the Parana

Currently, CESP provides power to much of the Sao Paulo
metropolitan area through its sales to four distribution
companies. Growth in electricity demand is high as the city and
its environs continue to industrialize. In a liberalized market,
CESP will sell power to the entire south-southeastern market of
Brazil, which is still the most developed and rapidly growing in
the country.

The national government, in an effort to create a competitive
generation market, restructured the contracts between government-
owned generation entities and distributors. Energy sales are
currently made under initial contracts that mandate an annual
decline of 25% in contracted volume beginning in 2003 to provide
a transition to a competitive wholesale market. Distributors and
generators must negotiate contracts to replace the initial
contracts. CESP to date has refrained from entering into
replacement contracts as it expects prices to become more
favorable with the passage of time. The pricing of these
contracts and the availability of energy, particularly from
potential thermal sources, are uncertainties bondholders face.

CESP was to have been privatized in December 2000. The attempt to
privatize CESP failed because of concerns surrounding a bullet
amortization of US$500 million due in May 2001 and uncertainties
regarding CESP's ability to raise the water level behind the
Porto Primavera plant. Issuances under this medium-term note
program refinance the bullet. Now that CESP is again able to
raise the water level behind Porta Primavera, all major
impediments to privatization have been removed, and the State of
Sao Paulo plans to privatize the company during the first six
months of 2001. CESP's CreditWatch Developing status reflects
uncertainties surrounding the creditworthiness of the purchaser
of CESP, the manner in which the acquisition will be financed,
and the resultant capital structure, Standard & Poor's said.

CVRD: To Review Docenave Activities
The investor relations department of CVRD (Companhia Vale do Rio
Doce) announced that the company is reevaluating the transport
activities of its marine transport unit Docenave (Navegacao Vale
do Rio Doce SA), Bloomberg said Wednesday. As previously
reported, CVRD is selling off its interest in the shipping
company Docenave, in which it has 99 percent ownership. Docenave
is one of Latin America's largest shipping companies. It carries
much of CVRD's iron ore to markets in Europe and Asia aboard a
large fleet of bulk carriers. It also operates ports and
container ships.

GLOBO CABO: Broadens Client Base By 60 Percent In 2000
Brazilian pay-TV and high-speed Internet provider Globo Cabo in
2000 saw its client base increased by 60.8 percent owing to its
acquisitions of cable companies Net Sul and Unicabo as well as to
the group's organic growth of 16.1 percent. In a Brazil Financial
Wire report released Wednesday, the company informed it
registered 1.505 million subscribers. This week, the company said
its net losses in 2000 had declined by 30.3 percent from a year
before, totaling R$ 366.59 million.

GLOBO CABO S.A.: Company Profile
Name:    Globo Cabo S.A.
         Rua Verbo Divino, 1356 first Floor
         Sao Paulo, SP, Brazil
         (212) 688-6840  


Type of Business:  Globo Cabo is the largest cable television
                   operator in Brazil, operating under the brand
                   name NET in the major Brazilian cities,
                   including operations in Brazil's largest
                   cities, Sao Paulo, Rio de Janeiro and Belo  
                   Horizonte.  The company also offers broad band
                   Internet services under the brand name VIRTUA,
                   and data communications and multimedia
                   services  for corporate networks through
                   VICOM. With close to 1.5 million connected
                   subscribers, Globo Cabo's NET cable network
                   extends over 34,000 kilometers and passes
                   through approximately six million homes.

SIC: Telecommunications - Cable TV and Satellite Systems  

Employees:    24,000 (1999)

Net Loss:     R$366.6 million year ending Dec. 31, 2000

Net Revenues: R$890.9 million year ending Dec. 31, 2000

Trigger Event: 1999 has begun with deep impacts in the national
               economy, due to the maxi-devaluation of the local
               currency compared to the American dollar. To  
               minimize and offset the economic and financial
               impacts of this crisis, the Management has
               promptly promoted a number of positive actions
               such as: centralization of the operational and
               administrative activities; unification of the
               offices; and the consolidation of the operational
               and administrative centers - "clusters". It also
               suspended investments and restricted on
               expenditures, implemented new commercial and
               credit policies, intensified the combat to piracy
               of signals and restructured indebtedness through a
               recapitalization process.

CEO: Moyses Pluciennik

CFO: Leonardo Pereira

Last TCRLA Headline DATE: Thursday, March 8, 2001, Vol.2, Issue


AHMSA: Will Not Increase Production Volume This Year
Due to a slump in international steel prices, former state-owned
enterprise Altos Hornos de Mexico (AHMSA) will not increase
production volume this year from year-2000 levels. The new
forcast was announced by Francisco Orduna, company spokesperson,
in a Reforma/Infolatina report Wednesday edition. According to
Orduna, while production volumes will remain unchanged from last
year, the company does not expect to accumulate excess
inventories during the current year.

Early this month, the company reported just 11.6 million pesos in
operating profits in the fourth quarter of the year 2000, a 97-
percent decrease from the previous year's 404.4 million pesos due
to a 30-percent drop in international steel prices and higher
energy costs. According to reports, low profit could likely cause
further complications to the company's debt restructuring talks
with banks and bondholders, which have dragged on since the
company defaulted on a 1.85-billion-peso debt in April 1999.

ASUR: Former Tribasa Stake To Be Sold In Several Weeks
Aaron Dychter, Communications and Transport ministry senior
official, revealed in an Infolatina report Wednesday that an 11.1
percent stake in Aeroportuario del Sureste (Asur) is soon to be
sold. Shares of the Mexican airport operator, which Tribasa
formerly owned, will be put up for sale in several weeks. The
decision was reached in order to make way for another Mexican
partner taking a substantial position in Asur. Previous reports
suggested that the U.S.-based investment fund Advent was looking
to buy the stake, which was ceded by Tribasa to state-run
development bank Nacional Financiera (Nafin) last year. Tribasa
forfeited the position after failing to make good on interest
payments it owed Nafin.

ASUR: Entering Negotiations With Selected Potential Operators

Grupo Aeroportuario del Sureste, S.A. de C.V. (NYSE: ASR; BVM:
ASUR) (ASUR) today announced that, after a period of thorough
analysis, during which the bids submitted in the retail tender
have been carefully assessed by an evaluation team in ASUR, the
company will go into negotiations with a few selected potential

The tender, launched by the company in December 2000, covers the
operation of all retail shops - with the exception of newspaper
and magazine stores - at Cancun, Cozumel and Merida, ASUR's three
largest airports, for 10 years of operation.

Frantz Guns, CEO of ASUR, commented: "The retail contract, which
will be valid for 10 years, is of huge importance for ASUR with
regard to revenues. Image and passenger perception are to a great
extent dependent on the retail outlets in an airport. Therefore,
ASUR has decided to go into a negotiation phase with a few
operators to determine which one will provide the types of
concepts and service that will best meet the needs of the
passenger and maximize revenue generation for our company."

Retailing is one of the most important sources of commercial
income for any airport company.

Grupo Aeroportuario del Sureste, S.A. de C.V. (ASUR) is a Mexican
airport operator with concessions to operate, maintain and
develop the airports of Cancun, Merida, Cozumel, Villahermosa,
Oaxaca, Veracruz, Huatulco, Tapachula and Minatitlan in the
southeast of Mexico. The company is listed both on the Mexican
Bolsa, where it trades under the symbol ASUR, and on the NYSE in
the U.S., where it trades under the symbol ASR. One ADS
represents ten (10) series B shares.

BANCRECER: IPAB Sells 9,793 Bancrecer Mortgage Portfolios
Mexican bank bailout agency IPAB announced it had sold 9,793
home-mortgages from the bad-loan portfolio of government-
intervened Bancrecer for a total of 815.73 million pesos,
Reforma/Infolatina said Wednesday. Among the successful bidders
for mortgage packages were FirstCity Commercial Corporation, Lone
Star US Acquisitions and Solida Administracion de Portafolios.
According to IPAB, the mortgages are denominated in pesos or
inflation-indexed investment units, known as UDIs. The total
amount paid for the mortgages, which were sold in six separate
packages, is approximately 29 percent of their combined book
value, the agency added.

BUFETE: Mendoza Blames Pemex For Financial Difficulties
Jose Mendoza Fernandez, founder and chairman of the struggling
Mexican construction company Bufete Industrial, blamed state-
owned energy conglomerate Petroleos Mexicanos (Pemex) for its
financial woes and its forthcoming takeover, Reforma/Infolatina
reported Wednesday. According to Mendoza, had Pemex awarded
Bufete major contracts such as the Ciudad Madero and Cadereyta
refinery projects, instead of granting them to South Korean
firms, it wouldn't be saddled with the enormous amounts of debt
it faces today. Mendoza recalled that Pemex in 1999 decided to
allow foreign companies to bid for energy-sector construction and
engineering projects and subsequently awarded a string of major
contracts to foreign firms whose bids did not comply with
appropriate technical standards. Bufete is recently the subject
of an imminent takeover by Sergio Bolanos Quesada of Mexico's
Corporacion Serbo.

ENTREGAMOS: Ceases To Operate In Mexico
After an unsuccessful attempt to resolve financial problems,
Mexican Internet-based delivery service Entregamos
( decided to close its Mexican office in
December, Business News Americas related Wednesday. The site is
currently down and an answering machine responds to all telephone

Entregamos was founded in February 2000 by a group of Mexican
Harvard graduates and received an initial investment from
Vineyard Ventures investment fund, Latin Idea
(, LLC (, Sun Technology Investors
( and Wasabi Fund (

GRUPO PROTEXA: Attempts To Reach Agreement With Creditors
Grupo Protexa is still trying to reach an agreement with
creditors to restructure the terms of a $90million eurobond issue
the company conducted three years ago, Reforma/Infolatina said
Wednesday. However, both parties have agreed in principle to an
outline of the negotiations. Protexa already made a $6million
prepayment last year. Additionally, it has also initiated talks
with the Mexican federal Finance ministry on the company's
estimated $90million tax debt.

PEMEX: Energy Ministry Official Defends President's Appointments
The four prominent Mexican businessmen who were named into the
board of state-owned energy conglomerate Petroleos Mexicanos
(Pemex) by President Vicente Fox will remain on the board. This
was stressed by Energy ministry senior official Juan Antonio
Barges in a Reforma/Infolatina report published Wednesday despite
the opposition-controlled Congress's approval of the
recommendation to revoke the President's recent appointments.
Barges defended the president's recent move saying the new
directors' extensive financial experience is essential to turning
Pemex into a world-class company.


MADECO: Reports 16.8B Peso Unconsolidated Net Loss In 2000
Chilean copper producer Madeco S.A. reported an unconsolidated
net loss of 16.786 billion pesos in 2000 versus the previous
year's net loss of 54.486 billion pesos, Reuters reported
Wednesday. No other figures were released. The company issued a
statement saying that consolidated results for 2000 will be
published on March 16.

Madeco operates in four business segments that include wire and
cable, pipes, bars and sheets (brass mills), flexible packaging
and aluminum profiles.

MAVESA: Board Hands Down Regulations During Tender Offer Period
Mavesa S.A. (the "Company"), one of the leading Venezuelan food
products manufacturers, today announced that its Board of
Directors has adopted an internal regulation (the "Regulation")
governing the general business conduct of the Company during the
tender offer by Primor Inversiones, C.A. for all of the Company's
outstanding shares and American Depository Shares. The Regulation
is also applicable in the event the tender offer is successful
and in the event a competing offer is made for Mavesa. Among
other things, the Company and its subsidiaries must conduct their
operations in a manner consistent with practices employed during
the previous 12 months, and are restricted from (i) taking any
action which would result in the dissolution of the Company or
its subsidiaries; (ii) disposing of material fixed assets of the
Company and its subsidiaries; (iii) modifying, rescinding or
failing to comply with certain types of contracts; and (iv)
incurring or assuming any indebtedness other than in the regular
course of business. The Company published the Regulation in two
newspapers in Caracas, Venezuela on March 6, 2001 and
communicated the same to the Venezuelan Securities Commission on
March 7, 2001.

Investors and security holders are strongly advised to read the
Mavesa's Recommendation Solicitation Statement on Schedule 14D-9
which was filed with the Securities and Exchange Commission (SEC)
and the tender offer statement on Schedule TO referred to in this
news release filed with the SEC by Primor Inversiones, C.A.
because they contain important information. Investors and
security holders may obtain a free copy of those statements and
other documents filed by Mavesa and Primor at the SEC's website, , and directly from the filing party, upon request.

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
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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,
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