TCRLA_Public/010418.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, April 18, 2001, Vol. 2, Issue 76



RECOL NETWORKS: Files For Bankruptcy Protection


RANDON PARTICIPACOES: Sells Stake In Carrier To US Company


ENAMI: Restructuring Proposals Due By Month's End
GENER: Refuses To Comment On Reduced Rating
TELEX-CHILE: Plans To Appeal To Court's Ruling


ANGLOGOLD: Withdraws From Colombian Project

D O M I N I C A N   R E P U B L I C

CDE: Defends Operation To Privatize Company
CDE: Senate Investigates Privatization Irregularities


AEROMEXICO: Limited Room For Competing Airlines Says CEO
GRUPO DINA: Strike Seen Likely At Plant

     -  -  -  -  -  -


RECOL NETWORKS: Files For Bankruptcy Protection
Spain-based content and e-commerce service provider Recol
Networks ( has applied for bankruptcy protection
from creditors, South American Business Information reported

Recol implemented a revised business plan earlier this year,
reducing operating costs by 69 percent and reducing its
workforce. In February, Recol was trying to determine whether to
close down its Mexican and Argentine subsidiaries as these two
businesses were no longer profitable for the company.


RANDON PARTICIPACOES: Sells Stake In Carrier To US Company
Randon Participacoes is selling its stake in Carrier Transicold
Brasil Equipamentos de Ar Condicionado e de Refrigeracao para
Transportes, implementing an important element of its
restructuring program to focus business in sectors with a major
return, South American Business Information said Monday.

Randon recently sold the stake to the US company UTI (United
Technologies International), which already has a 49-percent stake
in Carrier, for an undisclosed sum.

Randon ended last year with R$5.47 million in losses and R$11.4
million in net earnings. It also posted a negative net worth of
R$12.9 million.


ENAMI: Restructuring Proposals Due By Month's End
The board of Chile's state minerals processing company Enami has
until the end of the month to present restructuring proposals to
President Ricardo Lagos, Business News Americas reported Monday.
The directors of the financially-strapped company have already
ruled out privatization as an option, however, partnerships with
the private sector and sale of assets to state copper corporation
Codelco will figure among the proposals.

Last week Enami, which has liabilities amounting to US$465
million, successfully concluded the renegotiation of US$150
million of short-term debt into medium-term liabilities,
according to Chief Executive Jaime Perez de Arce. Recently, the
company announced it has officially registered a $140-million
bond issue with regulatory authorities, to cover part of its
medium-term debt.

GENER: Refuses To Comment On Reduced Rating
Chilean generator Gener, controlled by U.S.-based AES, refused to
make a comment on the reduction of its rating by credit rating
agency Standard & Poor's (S&P's), according to a Gener source in
a Business News Americas report published Monday.

"Gener has never commented on ratings or evaluations, positive or
negative, made by third parties, as it is not company policy,"
the source said.

Last week, S&P cut Gener's rating from BBB+ to BBB. The rating
remains on CreditWatch with negative implications, where it was
placed on Dec. 28, 2000, as a result of AES Corp.'s (double-
'B'/Watch Pos) acquisition of 61.57 percent of Gener on the
Santiago stock exchange for US$841 million.

TELEX-CHILE: Plans To Appeal To Court's Ruling
Chilean Telecom's holding, Telex-Chile, plans to appeal the court
ruling which approved the sale of long distance subsidiary
Chilesat, yet denied the company protection from its creditors
for a 90-day period, Business News Americas reported Monday.
According to reports, the company failed to convince the court
that a majority of its creditors backed the plan. The ruling
still allows creditors to request Telex-Chile's bankruptcy.

The Telex-Chile board said in an April statement that it would
seek court protection from creditors and recommend the sale of
Chilesat at an extraordinary shareholders' meeting on April 27,
in order to pay down debts. Telex defaulted on the payment of a
US$8.9mn credit facility due April 5.


ANGLOGOLD: Withdraws From Colombian Project
AngloGold South America has informed Conquistador Mines Ltd. of
its decision to withdraw from the Colombian Regional Project
within the next 30 days, Market News Publishing said in a report

The project is owned and operated the company's subsidiary,
Corona Goldfields S.A. The unfortunate state of the gold market,
as well as the junior mining industry and the continuing
difficulties in Colombia, contributed adversely to AngloGold's
ability to raise further funding for its Colombian activities.

AngloGold will use its best efforts in the immediate future to
attempt to raise further funding for its Colombian activities. If
it is not possible to attain the required funding, the company
will be forced to abandon its Colombian subsidiary, Corona, and
its properties and programs in Colombia.

D O M I N I C A N   R E P U B L I C

CDE: Defends Operation To Privatize Company
Ignacio de Alvaro Gonzalez, spokesman for Edenorte and Edesur,
the two Union Fenosa power distributors, defended the companies'
decision to privatize bankrupt company Dominican Electricity
Corporation (CDE), in a DR1 Daily News release April 11.

de Alvaro explained that since the start of its operations in
August 1999, the companies have lost US$234 million, or an
average of US$14 million a month. He condemned the stand taken by
former CDE administrator Radhames Segura, and present CDE
administrator Cesar Sanchez, suggesting that they are not helping
to create an environment in which the electricity crisis could be
resolved and urged political interests to stay out of the

He said that (the huge loss) was the whole reason for privatizing
the CDE, despite the state continuing on as owner of half of the
companies. He admitted that the process has not been what it
should have been as Congress failed to pass the General Energy
Bill during the previous administration. This has obliged them to
operate as a concession of the CDE.

CDE: Senate Investigates Privatization Irregularities
The Senate technicians, who were contracted by Union Fenosa to
investigate the privatization of the Dominican Electricity
Corporation (CDE), have discovered irregularities in CDE's
accounting procedures, DR1 Daily News reported Monday.

"When analyzing the accounting procedures of Ortega y Asociados
we observe serious irregularities," states the Senate, adding
that the firm did not apply generally accepted auditing
procedures. The Senate claims the auditing firm of Ortega y
Asociados did a crude appraisal, reducing the value of the assets
by RD$35,000 million.

The Senate attributes responsibility for this to Antonio Isa
Conde, who was in charge of the Commission that carried out the
privatization. Isa Conde said if summoned by any technical or
legal body, he would answer questions about the privatization


AEROMEXICO: Limited Room For Competing Airlines Says CEO
Alfonso Pasquel, CEO of leading carrier Aeromexico, revealed that
Mexico only has enough room for three or four major airlines,
according to a report in Reforma/Infolatina released Monday.
Pasquel related that airlines would not be able to cover their
operating costs if more than one or two carriers were to serve
major domestic routes.

"I think the model should be three or four important players that
would have a chance to move ahead. The companies that are viable
should benefit from the introduction of clear and equitable
rules. We need intelligent models and schemes under which to
organize the aviation industry," Pasquel said.

Aeromexico is one of the two leading airlines owned by
government-run airline holding company Cintra. Cintra, which
holds more than 70 percent of the country's air transport market,
was targeted last year for break up and sale by Mexican antitrust
agency the Federal Competition Commission (CFC). Cintra is slated
to go on the auction block before the end of the year. The local
office of Merrill Lynch has been hired to manage the forthcoming

GRUPO DINA: Strike Seen Likely At Plant
Struggling Mexican heavy-vehicle maker Dina could be dealt a
final blow if workers carry out their threat to strike at 12:00
a.m. Tuesday, El Economista said in a report Monday.

Dina employees have demanded a 40-percent increase in wages and
have threatened to strike if management fails to meet their
demands. According to Lazaro Osorio, secretary general of the
labor union at Dina Camiones, there is little hope of a wage deal
being reached before the strike deadline. Executives of the
company describe the idea of meeting workers' demands as
financially suicidal.

Dina has been seeking a domestic or a foreign partner to help the
company resolve its financial problems but there's still no word
on the outcomeof the search from management. The 506 workers set
to strike are employed at a plant in the central state of
Hidalgo, in which operations were shut down two months ago due to
the company's lack of liquidity and inability to meet obligations
to creditors.

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.

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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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