/raid1/www/Hosts/bankrupt/TCRLA_Public/010327.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

            Tuesday, March 27, 2001, Vol. 2, Issue 60

                           Headlines


B R A Z I L

iG: Demarco Requests CVM Investigate Telemar's Acquisition
KLABIN: To Reduce Debts By 10 Percent This Year


C H I L E

EDELNOR: Plant Operations Affected By Pipeline Damages
ENAMI: Losses In 2000 Amounted To US$29.3M
TELEFONICA CTC: Explains Asset Divestiture Plan
TELEFONICA CTC: Philippi's Appointment Gets Support


C O L O M B I A

DRYPERS: To Join International Conglomerate


M E X I C O

AHMSA: To Implement Staff Cutbacks
ALO.COM: Head To Say Goodbye To Web Portal
ATLANTICO: Bital To Inject Capital Through Deal With IPAB
CHRYSLER: Not To Be Sold
GMD: In Talks With National And International Firms
GRUPO VITRO: Request Re Debt Emission Eminent       
SERFIN: Mexico's First Banking-Services Site Announced   
XEROX: Reaches Settlement Agreement With Accent Color  
XEROX: Cauley Geller Bowman & Coates Files Class Action


V E N E Z U E L A

SUDAMTEX: Turns To CND For Financial Help


     -  -  -  -  -  -  -  -  -  -  





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B R A Z I L
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iG: Demarco Requests CVM Investigate Telemar's Acquisition
-----------------------------------------------------------
Luis Fernando Demarco, a former executive of Brazilian investment
fund Opportunity and current minority shareholder of local fixed
line operator Telemar, requested the Brazilian securities
regulator CVM look into Telemar's plans regarding the acquisition
of iG's assets. According to a South American Business
Information report published Friday, Demarco claimed that the
company's board has not informed its shareholders about the
February 14 signing of the acquisition agreement with iG in a
deal valued at US$19.1 million.

According to Demarco, shareholders were only formally notified
last week, when they gave their approval of a plan to pay iG
US$4.8 million for the right to provide free access to iG users.
Demarco also protested the transaction before the March 20
shareholders' meeting, on grounds that Opportunity and GP
Investimentos have ownership positions in both Telemar and iG,
implying possible conflict of interest.


KLABIN: To Reduce Debts By 10 Percent This Year
-----------------------------------------------
In an effort to reduce debts by 10 percent this year, Brazilian
paper and woodpulp producer Industrias Klabin de Papel e Celulose
(Klabin) is selling-off assets, South American Business
Information said Friday. Klabin currently has liabilities of
R$2.2 billion, and the company is betting its EBITDA, expected to
represent R$150 million, and the sale of some assets to reach its
target. Reportedly the company has already sold to US Boise
Cascade 9,700 hectares of forests and 13,000 hectares of land,
both located in Rio Grande do Sul, for R$77.4 million. Duratex
acquired 5,400 hectares held by Klabin-controlled Igaras, for
R$10.5 million. According to market analysts, Klabin will also
sell-off 30,000 hectares of forest and 50,000 hectares of land to
reach the remainder of the R$12.1 million. It will also sell
Klabin Celucar, when turnover reaches R$27 million.



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C H I L E
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EDELNOR: Plant Operations Affected By Pipeline Damages
------------------------------------------------------
Power generating company Edelnor (Empresa Electrica del Norte
Grande S.A.) has been affected by damages at Nor Andino's gas
pipeline in Argentina, South American Business Information said
Friday. Accordingly, the power generator halted plant operations
last week due to the lack of natural gas supply from Tractebel-
owned Nor Andino. Sources at Nor Andino refused to predict when
the gas pipeline's repair would be finished.

Edelnor reported a loss of Ch$8.0 billion through year-end 2000,
compared to a loss of Ch$2.0 billion for the same period of 1999.
Results were negatively impacted by a non-cash monetary
correction adjustment (price level restatement) required under
Chilean accounting rules in the amount of Ch$6.6 billion.


ENAMI: Losses In 2000 Amounted To US$29.3M
------------------------------------------
Chile's state minerals processing company Enami, which is
currently restructuring US$465 million in debts, posted a loss of
US$29.3 million in 2000, up from US$24.3 million in the previous
year, South American Business Information said Friday. It
registered operational profits of US$2.7 million, however, non-
operational losses amounted to US$37.3 million, compared to a
US$17.6-million loss in 1999.

Most of the company's debts were incurred as a result of
environmental clean-up programs at its Paipote and Ventanas
smelters. Enami announced earlier this month that it would issue
bonds this month worth US$150 million in order to reduce current
liabilities.


TELEFONICA CTC: Explains Asset Divestiture Plan
-----------------------------------------------
Telecoms operator Telefonica CTC Chile cited in a South American
Business Information report Friday it is selling off non-
strategic assets due to the negative effect brought about by the
government's price regulation. The explanation by the telecoms
operator came after the securities and insurance agency SVS
demanded that Telefonica CTC provide clear information about its
assets divestiture plan. Part of the plan is to sell its
headquarters building and its 60-percent stake in Sonda.
According to Telefonica CTC, it hasn't reached a deal yet with
any firm over the sale of the Sonda stake.


TELEFONICA CTC: Philippi's Appointment Gets Support
---------------------------------------------------
Mr. Bruno Philippi, a former president at Gener, has been
appointed President by Telefonica Espana (TE) at Telefonica CTC
Chile, according to South American Business Information Friday.
The decision received support from pension fund firms - the main
minority holders of the telecoms operator holding 20.17 percent
interest in the company. TE believes that having Bruno as the new
president will help improve its relationship with minority
holders. Philippi is to replace former chairman Javier Aguirre,
whose resignation came just days after the release of the
company's poor results for 2000, posting heavy losses for the
second consecutive year.



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C O L O M B I A
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DRYPERS: To Join International Conglomerate
-------------------------------------------
Drypers Andina, a producer of diapers/nappies with operations in
Colombia, Brazil and Argentina, will join an international
conglomerate, Mexican group Productora Internacional Mabe, South
American Business Information said Friday. Drypers will become
the property of Mabe, which specializes in hygiene products and
operates in the US and in Mexico. Drypers ran into financial
difficulties in October of last year, having started Colombian
operations three years earlier. It employs 100 Colombians
directly, and at least another 400 indirectly. Exports fell from
30 percent in the first semester of 2000 to 15 percent in the
second.



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

AHMSA: To Implement Staff Cutbacks
----------------------------------
Former state-owned steelmaker Altos Hornos de Mexico (Ahmsa)
plans to implement staff cuts that could affect 1,200 workers,
600 of whom are union members. In an Infolatina report published
Friday, national miners and steelworkers labor union official
Napoleon Gomez Urrutia revealed that the management has voiced
its interest in implementing the plan. Talks between the union
and management have just started, Gomez Urrutia disclosed. The
company has explained to the union that the planned cuts are a
direct consequence of the company's ongoing financial problems,
including a year-long suspension of payments, and a slump in
steel demand and prices.


ALO.COM: Head To Say Goodbye To Web Portal
------------------------------------------
Alejandro Reynoso, head of the Mexican horizontal web portal and
media content company Alo.com, will soon leave his position and  
the company, Reforma/Infolatina revealed Friday. This event is
seen as one proof of the breakdown of Alo.com's internet
business, originally centered around transmitting television
content via the web, and increasing focus on production of
content for the traditional media.

As previously reported, Alo.com co-founder Guillermo Canedo White
has invited Grupo IUSA Chairman Carlos Peralta, former owner of
mobile carrier Iusacell, to back expansion of Alo.com's content
production activities. Since Alo.com's web portal business has
not lived up to expectations the company seeks to shift its
emphasis toward the traditional media, possibly through
acquisitions. The portal has been in talks with institutional
investors in hopes of establishing an investment fund to finance
its traditional-media expansion project.


ATLANTICO: Bital To Inject Capital Through Deal With IPAB
---------------------------------------------------------
Antonio del Valle, a top executive at Grupo Financiero Bital,
revealed in a Reforma/Infolatina report Friday that the bank's
acquisition of government-intervened Atlantico from Mexican bank
bailout agency IPAB is almost completed.

According to Del Valle, Bital would inject 300 million dollars in
fresh capital into the merged entity as soon as it reaches a
final agreement with IPAB. Bital's acquisition of Atlantico has
been stalled for three years due to a political controversy
surrounding the taxpayer-funded rescue of Mexico's banks and the
creation of IPAB in 1998. Meanwhile, Atlantico's books have
deteriorated significantly, fueling Bital's expectation to pay
less for the bank.


CHRYSLER: Not To Be Sold
------------------------
DaimlerChrysler AG has said once again that it is not considering
the sale of its troubled U.S. Chrysler division, Reuters reported
Sunday. The announcement came in response to a media report,
which said that a sale option was being discussed at the auto
giant. According to Spiegel, a German magazine, DaimlerChrysler
major shareholder Deutsche Bank AG had appointed its new mergers
and acquisitions chief Michael Cohrs as adviser and that all
options for Chrysler were open to discussion. However, an unnamed
DaimlerChrysler spokesman strongly rejected the report, saying
that the firm's chief executive Juergen Schrempp had pledged on
February 26 to invest $4 billion in the U.S. unit to restore it
to full profitability by 2003.

"Mr. Schrempp has said numerous times and repeated only several
weeks ago that we are not considering a sale of Chrysler. That
position hasn't changed in the past several weeks. We have a
clear strategy and part of that strategy includes Chrysler," he
said.


GMD: In Talks With National And International Firms
---------------------------------------------------
Talks between Grupo Mexicano de Desarrollo (GMD) and some
national and international financial institutions are underway,
according to South American Business Information Friday. GMD
needs to secure financing for the development of the toll
motorway Atizapan-Venta de Carpio as well as the roads leading
off it to Ecatepec and Huehuetoca in Mexico. According to
reports, it has already acquired signed declarations of intent
for the pre-construction studies as well as one for the whole
project.

GMD is involved in road and water treatment projects as well as
maritime cargo terminals and municipal services. Last year, it
showed an operating profit of P$32.4 million compared with a loss
of P$28.2 million pesos in 1999.  Earlier this month, the company
announced it had made payments of P$35 million and P$350 million
on promissory notes as part of its financial restructuring.


GRUPO VITRO: Request Re Debt Emission Eminent       
---------------------------------------------
Leading glass manufacturer Grupo Vitro of Mexico will ask
shareholders' permission to refinance debt by emitting more,
South American Business Information reported Friday. The group,
which debts amount to US$1.634 billion at the end of 2000, wants
to emit debt totaling US$250 million, and speculation is rife
that the majority owners are likely to approve the proposal.

TCR-LA previously reported that the company would also seek the
approval of the shareholders at their next meeting on April 5 of
its intention to pay dividends amounting to $30.5 million, equal
to 1 peso ($0.11) a share. It is widely believed that the Sada
Gonzalez family, the company's controlling shareholders, will
approve the dividend payment. However, its plan was questioned by
some analysts, who said they would rather see the company use the
available funds to reduce its debts.


SERFIN: Mexico's First Banking-Services Site Announced   
------------------------------------------------------
Serfin Bank has launched Mexico's first-ever banking-services web
site that allows users to consult balances and make transfers to
accounts in other financial institutions. This was announced by
Serfin senior executive Francisco Javier Lorenzo Muradas, in a
Reforma/Infolatina report Thursday edition. According to Muradas,
Serfin clients can consult balances and make transfers to
accounts at Banamex, BBVA-Bancomer, Banorte and Bital from the
new web site. Carlos A. Oramos, Serfin Executive Director of
Banking Products and Services, revealed that the cost of
processing an online transaction is approximately 10 cents, as
opposed to a cost of one dollar for a traditional transaction.

Serfin aims to restore its former position as the country's
third-largest bank in five years' time. It was acquired in May
2000 by the local subsidiary of Spain's Banco Santander Centro
Hispano (BSCH) from IPAB, the country's bank bailout agency.


XEROX: Reaches Settlement Agreement With Accent Color  
-----------------------------------------------------
March 23, 2001 - Business Wire

Accent Color Sciences, Inc. (OTC Bulletin Board: ACLR), a leading
provider of high-speed spot color printing systems and ink jet
integration services, announced today that it has reached a
settlement with Xerox Corporation terminating Accent Color's
agreements with Groupe Set International, a subsidiary of Xerox
in Europe.

Under the terms of the settlement, Accent Color received a cash
payment from Xerox in return for the termination and other
considerations.

Charles Buchheit, president and chief executive officer of Accent
Color Sciences, commented: "We are disappointed Xerox has chosen
not to continue its program with our product but understand its
current business challenges, especially as we continue to refocus
our business plan. Xerox's earlier indications, such as its
reluctance to place additional orders for 2001, caused us to
accelerate our efforts in industrial printing. In addition to our
previous transactional printing business, we have also initiated
business activities in package printing, engineering services,
and component sales. As we speak with companies in various
industrial markets, we find increasing need for our technical
expertise and we are focusing our attention there."

Buchheit continued: "The industrial printing opportunity has been
sized by consultants as being substantially larger than the
conventional transactional printing market. The opportunity is
also very diverse. In fact, we are currently reviewing programs
that would require us to jet not only hot melt ink but also
solvents, powdered metals, oils, and even glue. This opportunity
is available for us due to the years of experience Accent Color
has in the electrical and mechanical integration of ink jet
technology."

Accent Color Sciences, Inc. designs, manufactures and sells
innovative, high-speed ink jet printing systems, and provides ink
jet integration and manufacturing services specializing in
systems for industrial use. Its products include the
Truecolor(TM) System--for the production printing and production
publishing segments of the printing industry. Truecolor(TM)
Systems, when integrated with high-speed, digital, black-on-white
printers, create a system that prints or highlights critical
information in multiple colors for large-volume applications.
Such applications include billing statements, account statements,
invoices, check in-filling, legal notices, brochures, financial
reports and short-run, on-demand publications.


XEROX: Cauley Geller Bowman & Coates Files Class Action
-------------------------------------------------------
The Law Firm of Cauley Geller Bowman & Coates, LLP announced on
March 23, 2001 that it has launched a class action lawsuit in the
United States District Court for the District of Connecticut on
behalf of all individuals and Institutional investors that
purchased the common stock of Xerox Corporation between February
15, 1998 and February 6, 2001, inclusive (the "Class Period"),
reported PrimeZone Media Network.

According to the lawsuit, the company and certain of its officers
and directors violated the federal securities laws by reporting
false financial results during the class period and failing to
adhere to the standard accounting practices the company claimed
to follow. Specifically, the complaint alleges that Xerox
improperly recognized revenues from its leasing operations by
booking up front 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, and 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.



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

SUDAMTEX: Turns To CND For Financial Help
-----------------------------------------
A proposal by the Venezuelan textile group Sudamtex, which aims
to collaborate with the CND (Corporacion Nacional para el
Desarrollo) in financing its merger with an Argentinean textile
firm, is now under the scrutiny of the latter, South American
Business Information reported Friday. Sudamtex wants to merge
with an Argentinean firm and concentrate on production of knitted
fabric and spun textiles in Uruguay leaving the distribution to
the Argentinean firm. Both companies would have to invest US$1
million each. According to CND, it could invest in the company
through a debt bond.




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,
contact Christopher Beard at 301/951-6400.


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