TCRLA_Public/011016.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, October 16, 2001, Vol. 2, Issue 202

                           Headlines


A R G E N T I N A

COMPANIA MEGA: On S&P CreditWatch, Negative Implications
Moody's Downgrades Argentine 11 Issuers On Currency Troubles
Moody's Downs LT Foreign Bonds, Deposit Ratings At 15 Banks


B O L I V I A

LAB: Bolivian Government Applauds Vasp Withdrawal From Market


B R A Z I L

EMBRAER: Shares Up On Purchase Announcement By China Southern
MOULINEX: Bidders Improve Offers While Court Readies Decision


E C U A D O R

BANCO DEL PACIFICO: Arrest Warrant Issued For Finance Minister


H O N D U R A S

GEOMAQUE EXPLORATIONS: Financial Restructuring Progressing Well


M E X I C O

AMERIJET INTERNATIONAL: HIG Eyes Majority Stake, Awaits Approval
AMERIJET INTERNATIONAL: To Surrender, Lease Back 5 Boeing 727s
CINEMASTAR LUXURY: Company Profile
MAXCOM TELECOMUNICACIONES: Using Up Cash Fast
SL INDUSTRIES: Company Profile
VITRO: To Confront Enormous Debt In The Near-Term
XEROX: Reports Better Results Despite Latin American Troubles


P A R A G U A Y

ANTELCO: Workers Want Parity In Bidding Race


P E R U

PROCACAO: Refinancing Debt To Get Back In The Black



     - - - - - - - - - - - -
=================
A R G E N T I N A
=================

COMPANIA MEGA: On S&P CreditWatch, Negative Implications
--------------------------------------------------------
Standard & Poor's placed Friday Argentina-based Compania MEGA
S.A.'s (MEGA) single 'B'-plus foreign currency rating on
CreditWatch with negative implications.

The CreditWatch placement reflects the company's technical
default due to the noncompliance with certain timely information
requirements to the administrative agent. It is a condition
precedent for the exchange of the notes that there is not an
event of default pending. MEGA is currently in the process of
passing through documentation in this regard to the
administrative agent and the bondholders for their consent.
Another condition precedent is still pending as to the funding of
the debt service reserve account (DSRA). Standard & Poor's
expects MEGA to be able to resolve these issues and cure the
technical default in a timely fashion. In the unlikely event that
this situation is not resolved in the next couple of weeks, then
Standard & Poor's might downgrade the outstanding rated debt.

Compania MEGA owns a natural gas separation plant, a pipeline,
and a gas fractionation facility. The company's shareholders are
YPF S.A. (38%), Petrobras (34%), and Dow Quimica Argentina (28%).

CONTACT:  Standard & Poor's, Buenos Aires
          Matias Badia, (54) 114-891-2129
          or
          Lidia Polakovic, (54) 114-891-2130


Moody's Downgrades Argentine 11 Issuers On Currency Troubles
------------------------------------------------------------
Subsequent to the downgrade of Argentina's foreign currency
ceiling to Caa3 from Caa1, Moody's Investors Service lowered
ratings for the issuers listed below:

- Mastellone Hermanos S.A.
  Senior Implied to Caa3 from Caa1
  Issuer Rating to Caa3 from Caa1
  $225 million senior unsecured notes, due 2008, to Caa3 from
    Caa1

- Compania de Alimentos Fargo S.A.
  $120 million senior unsecured notes, due 2008, to Caa3 from
   Caa2

- Acindar Industria Argentina de Aceros S.A.
  Senior Implied to Caa3 from Caa1
  Issuer rating to Caa3 from Caa1
  $100 million of 11.25% senior notes, due 2004, to Caa3 from
   Caa1

- IMASAC S.A.
  Senior Implied to Caa3 from Caa1
  Issuer rating to Caa3 from Caa1
  $80 million senior unsecured global bonds, due 2005, to Caa3
  from Caa1

- Industrias Metalurgicas Pescaroma SAIC
  Senior Implied to Caa3, from Caa1
  Issuer rating to Caa3, from Caa1
  $150 million of aggregate 9.5% senior unsecured Global Notes,
  due 2002, to Caa3, from Caa1

- Global MTN Program to Caa3/Not Prime, from Caa1/Not Prime

- CableVision S.A.
  Senior implied to Caa3 from Caa1
  Issuer rating to Caa3 from Caa1
  $525 million aggregate of senior unsecured notes to Caa3 from
  Caa1 $425 million Global MTNs to Caa3 from Caa1

- Multicanal S.A.
  Senior implied to Caa3 from Caa1
  Issuer rating to Caa3 from Caa1
  MTN program to Caa3 from Caa1
  $687.5 million aggregate of senior unsecured notes to Caa3 from
   Caa1

- Disco S.A.
  $100 million 9.125% senior notes, due 2003, to Caa3 from Caa1
  $250 million 9.875% senior notes, due 2008, to Caa3 from Caa1

- Coto Centro Integral de Comercializacion S.A.
  $300 million global medium term note program to Caa3 from Caa1

- Supermercados Norte S.A.
  10.875% senior notes, due 2004, t

The outlook on these ratings is stable, consistent with the
stable outlook on Argentina's foreign currency ceiling.

New York
Michael Rowan
Managing Director
Corporate Finance Group
Moody's Investors Service
JOURNALISTS: (215) 967-6233
SUBSCRIBERS: (215) 967-6233

New York
Daniel Gates
Senior Vice President
Corporate Finance Group
Moody's Investors Service
JOURNALISTS: (215) 967-6233


Moody's Downs LT Foreign Bonds, Deposit Ratings At 15 Banks
-----------------------------------------------------------
Moody's Investors Service downgraded the long-term foreign
currency bond and deposit ratings of all the rated Argentine
banks listed below. The rating actions follows the agency's
announcement that it had lowered Argentina's foreign currency
country ceiling for bonds and notes and the foreign currency
country ceiling for long term bank deposits to Caa3. The outlook
is stable.

- Banco Rio de la Plata, S.A.: long- term foreign currency debt
lowered to Caa3, with stable outlook; long-term foreign currency
deposits and issuer rating lowered to Caa3, with stable outlook;

- Banco Ro de la Plata, S.A., New York branch: long term foreign
currency debt lowered to Caa3, with stable outlook;

- Banco Ro de la Plata, S.A. Grand Cayman: long term foreign
currency debt lowered to Caa3, with stable outlook;

- BBVA Banco Frances, S.A.: long- term foreign currency debt
lowered to (P) Caa3, with stable outlook; long-term foreign
currency deposits and issuer rating lowered to Caa3, with stable
outlook;

- Banco de Galicia y Buenos Aires, S.A.: long- term foreign
currency debt lowered to Caa3, with stable outlook; long-term
foreign currency deposits and issuer rating lowered to Caa3, with
stable outlook;

- Banco de Galicia y Buenos Aires, S.A. (New York): long-term
foreign currency debt lowered to Caa3, with stable outlook;

- Banco Hipotecario, S.A.: long- term foreign currency debt
lowered to Caa3, with stable outlook; long-term foreign currency
deposits and issuer rating lowered to Caa3, with stable outlook;

- HSBC Bank Argentina, S.A.: long-term foreign currency deposits
lowered at Caa3, with stable outlook;

- Banco de la Provincia de Buenos Aires: long-term foreign
currency deposits lowered to Caa3, with stable outlook;

- BankBoston, N.A. (Argentina Branch): long-term foreign currency
deposits lowered to Caa3, with stable outlook;

- Citibank, N.A. (Argentina Branch): long- term foreign currency
debt lowered to Caa3, with stable outlook; and long-term foreign
currency deposits lowered to Caa3, with stable outlook;

- Banco de la Nacion Argentina: long-term foreign currency
deposits lowered to Caa3, with stable outlook;

- Scotiabank Quilmes, S.A.: long- term foreign currency debt
lowered to Caa3, with stable outlook; and long-term foreign
currency deposits lowered to Caa3, with stable outlook;

- Banco Bansud, S.A.: long-term foreign currency debt lowered to
Caa3, with stable outlook; long-term foreign currency deposits
lowered to Caa3, with stable outlook;

- Banco de la Ciudad de Buenos Aires: long-term foreign currency
debt lowered to Caa3, with stable outlook; long-term foreign
currency deposits lowered to Caa3, with stable outlook.

The actions do not affect the bank financial strength ratings of
the rated Argentine banks.

New York
Gregory W. Bauer
Managing Director
Financial Institutions Group
Moody's Investors Service

New York
Jeanne Del Casino
Vice President - Senior Analyst
Financial Institutions Group
Moody's Investors Service



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

LAB: Bolivian Government Applauds Vasp Withdrawal From Market
-------------------------------------------------------------
The decision of the Brazilian aviation company Vasp to pull out
of the Bolivian market got the support of the Bolivian
government, La Razon reported October 10. The Bolivian
authorities believed that Vasp's withdrawal from the local market
is the only way to solve the problems caused by the airline.

VASP had announced that it would sell its 50-percent ownership in
Lloyd Aereo Boliviano (LAB), cutting off all ties from the
Bolivian company with which it has been involved since December
1995 through an original investment of $47 million.

The authorities also said that LAB has good reason to cancel the
contract with its Brazilian partner considering the allegations
presented at the Cochabamba shareholders meeting.

LAB, which is now on the verge of bankruptcy, has estimated debts
of US$50 million and 5 airplanes have stopped operating entirely.
The Bolivian government ruled out selling off its interest in LAB
to Vasp in order to pay debts with Bolivida (insurance). LAB
generates annual sales of US$160 million. According to the
government, 2 other companies have shown interest in a
partnership with the Bolivian airline



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

EMBRAER: Shares Up On Purchase Announcement By China Southern
-------------------------------------------------------------
Shares of Embraer rose on Thursday, a move perceived by analysts
as a reflection of the China Southern Airlines' interest in
buying at least 20 ERJ-145 aircraft from the Brazilian aircraft
manufacturer, O Globo said in a report. Embraer's preferred
shares rose 9.2 percent, the biggest increase since last month's
terrorist attacks in the US. Ordinary shares rose by 7.7 per
cent, while in the US, the company's ADRs (American Depository
Receipts) gained 6.54 per cent.

Andre Querne, an analyst at asset management company Maxima, said
that if Embraer does win the order, its shares might start to
recover. Embraer's preferred shares accumulated losses of 33.78
per cent between 11 September and 11 October 2001. The air
transport sector crisis has forced the company to cut 1,800 jobs
and estimate a loss of revenue of $700 million in 2001 and $1.2
billion in 2002. The company's shares have lost more than half
their value since the beginning of the year amid a sharp downturn
in the aviation industry.

CONTACT:  Milene Petrelluzzi of Embraer, in Brazil
          Phone: 55-12-345-3054
          e-mail: milene.petrelluzzi@embraer.com.br

          Anna Cecilia Bettencourt
          Investor Relations of Embraer S.A., in Brazil
          55-12-345-1106,
          or e-mail: acecilia@embraer.com.br


MOULINEX: Bidders Improve Offers While Court Readies Decision
-------------------------------------------------------------
The best-placed bidders for the French electrical appliances
group Moulinex improved their offers, as the Nanterre commercial
court prepares to decide on the group's future. According to a
report in Le Figaro Friday, Moulinex's competitor SEB SA and the
Fidei investment fund submitted new proposals to the court, but
inside sources claimed these changes are `minor' and do no
include any further Moulinex production sites. With regards to
the group Euroland, which had said that it wanted to takeover all
of Moulinex, the court said that it had heard nothing more.

The Nanterre court will consider the bidders' new proposals on 16
October. Moulinex's fate, including its Brazilian operations, is
expected to be decided at a public hearing of the court on either
Wednesday or Thursday.



=============
E C U A D O R
=============

BANCO DEL PACIFICO: Arrest Warrant Issued For Finance Minister
--------------------------------------------------------------
Ecuador's supreme court issued an arrest warrant Friday for
Finance Minister Jorge Gallardo over allegations of
irregularities he committed while he was executive president of
Banco del Pacifico, according to a report in AP. The Supreme
Court President Galo Pico issued the warrant based on an attorney
general's investigation of Banco del Pacifico. Prosecutors allege
that Gallardo set up a business trust on behalf of Banco del
Pacifico shareholders to improperly transfer $78 million of past-
due loans and debts to state-run Filanbanco bank before Pacifico
was taken over by government regulators.

Pacifico is one of 17 banks that has been taken over by the
government since 1998, when the near-collapse of Ecuador's
corruption-ridden banking system deepened an economic slump, set
off hyperinflation and caused the country's worst financial
crisis since the 1930s.

Gallardo, in the wake of the allegations, resigned Thursday as
Ecuador's Finance Minister. President Gustavo Novoa has accepted
his resignation and appointed economist Carlos J. Emanuel (ex-
director of the Central Bank) to replace him, though the exact
date for accession remains unknown yet, the president's office
said.



===============
H O N D U R A S
===============

GEOMAQUE EXPLORATIONS: Financial Restructuring Progressing Well
---------------------------------------------------------------
In an official press release, Geomaque Explorations Ltd. (the
"Company") announced that it has made an arrangement with its
principal lender, Resource Capital Fund II L.P. ("RCF") and
certain creditors whereby a total of $2,922,000 of debt owing to
these creditors has been eliminated by the payment to these
creditors of $825,000 and the provision of certain other
consideration. The Company obtained the $825,000 as a result of
the exercise by these creditors of the outstanding Warrant B,
originally issued to RCF in connection with its financing of the
Company. As part of the arrangement, RCF transferred Warrant B to
these creditors. The exercise of the warrant resulted in the
issuance to these creditors of a total of 17,471,556 common
shares.

    - Butler Machinery Co. ("Butler") provided construction
      equipment to Geomaque de Mexico S.A. de C.V. ("Geomaque
      Mexico") for use at Geomaque Mexico's San Francisco Mine in
      Mexico. As full settlement for outstanding amounts invoiced
      by Butler totaling $2,297,000, Butler has agreed to take
      payment of US$500,000 plus the proceeds in excess of
      $500,000 from the sale of certain equipment at the San
      Francisco Mine. Butler was also given contingent rights,
      first, to any royalty that may arise on the sale of the
      equipment and, second, a 1% NSR on any future gold
      production from the unmined resources in the main pit. No
      present value has been ascribed to these rights. Butler
      paid $500,000 on the exercise of part of Warrant B and
      received, pursuant to the terms of the warrant, 10,597,943
      common shares of the Company. As a result, Butler currently
      owns approximately 14% of the 75,960,637 common shares now
      outstanding. Butler may increase or decrease its interest
      in the Company as market circumstances dictate.

    - Sococo de Costa Rica, S.A. ("Sococo") provides contract
      mining services to Geomaque de Honduras, S.A. d C.V.
      ("Geomaque Honduras") at Geomaque Honduras' Vueltas del Rio
      mine in Honduras. Geomaque Honduras currently owes Sococo
      approximately $2,000,000. As settlement of $600,000 of this
      amount, Sococo has agreed to take payment of $300,000 and,
      the Company has agreed on an arrangement for the payment of
      the remaining amounts owing over a period of time. Sococo
      paid $300,000 on the exercise of part of Warrant B and
      received, pursuant to the terms of the warrant, 6,344,874
      common shares.

    - Haywood Securities Inc. ("Haywood") is the Company's
      financial advisor and is providing advice to the Company in
      respect of its financial restructuring. The Company has
      agreed to apply the $25,000 received from Haywood on the
      exercise of a part of Warrant B to reduce fees owing to
      Haywood by that amount. Haywood received 528,739 common
      shares pursuant to the terms of the warrant.

Geomaque Explorations Ltd. is an international mining company
that is producing gold from its Vueltas del Rio Mine in Honduras
and San Francisco Mine in Mexico, and exploring for precious
metals in the Americas.

CONTACT:  John Paterson, President and Chief Executive Officer,
          (416) 956-7470



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

AMERIJET INTERNATIONAL: HIG Eyes Majority Stake, Awaits Approval
----------------------------------------------------------------
US investment firm HIG Capital is looking to acquire a majority
interest in the bankrupt Caribbean cargo airline Amerijet
International, Air Transport Intelligence reported Wednesday. The
looming acquisition is part of a restructuring plan the Florida-
based carrier submitted on October 5 and is now being considered
by a Florida court. Should Amerijet's creditors and the court
approve the plan, HIG would acquire two-thirds of the company
from its current owner and chief executive, David Bassett. HIG,
in turn, would provide $3 million in cash and help secure the
company new financing. HIG would also purchase Amerijet's Fort
Lauderdale, Florida, headquarters and lease it back to the
company.

The company, which primarily serves the Caribbean, Mexico and
South America, blames its rapid expansion into the net lease
business for its bankruptcy and claims its niche in the small but
profitable Caribbean cargo market remains viable.

"Amerijet has consistently maintained that our core operation is
viable," says Bassett. "We believe this reorganization plan
provides the tools and additional resources to enable a seamless
emergency from Chapter 11, including our ongoing business
relationships and present employees."

Amerijet hopes to emerge from bankruptcy protection at the end of
November, just three months after declaring bankruptcy.


AMERIJET INTERNATIONAL: To Surrender, Lease Back 5 Boeing 727s
--------------------------------------------------------------
The bankrupt Caribbean cargo airline Amerijet International
announced plans of giving up and leasing back five of its owned
Boeing 727 freighters, according to a report October 10 in Air
Transport Intelligence.

"The aircraft we are operating are being voluntarily returned to
the lenders and they have agreed to lease them back," says
Amerijet's outside counsel, Steven Peretz of Miami firm Luger,
Peretz and Kaplan.

Before its August bankruptcy filing, Amerijet had 12 727s, 10 of
which it owned. However, all the aircraft were heavily financed
and Amerijet began missing payments earlier this year after a
dramatic reduction in its wet lease business forced it to ground
half of its fleet.

According to Peretz, the carrier has since returned the two
aircraft it had leased from South Trust and four of its ten owned
aircraft that were financed by First Star and Providence banks.
He said the carrier is still negotiating the return of a sixth
aircraft still in its possession to Success Bank. But its two
other lenders - First Source and Joda - have agreed in principle
to take back their five aircraft and lease them to the
restructured Amerijet.

Joda is a new bank involved in the bankruptcy, having purchased
the aircraft previously controlled by Pullman Bank.


CINEMASTAR LUXURY: Company Profile
----------------------------------
NAME:  CinemaStar Luxury Theaters, Inc.
       7220 Avenida Encinas #203
       Carlsbad, CA 92009

TELEPHONE:  (760) 929-2525

FAX: (760) 929-2535

WEBSITE: http://www.cinemastar.com/

Email: corporate@cinemastar.com

TYPE OF BUSINESS:  CinemaStar Luxury Theaters, Inc. owns and
                   operates multi-screen movie theaters in
                   Southern California and Northern Mexico.
                   Approximately 69 percent of the Company's
                   revenues are derived from the sale of movie
                   tickets, 29 percent from concession sales, and
                   approximately 2 percent from the operation of
                   video games and other revenues. The Company
                   currently operates nine theaters with a total
                   of 103 screens.

SIC:  SERVICES-MOTION PICTURE THEATERS [7830]

EMPLOYEES (last reported count): 54

TRIGGER EVENT:  CinemaStar voluntarily filed a petition to
                reorganize its business under chapter 11 of the
                U.S. Bankruptcy Code on January 4, 2001, after
                overbuilding in the motion picture theatre
                industry and the resulting intense competition
                for movie patrons caused the Company to incur
                significant losses.

CHAIRMAN/CEO:  Jack Crosby

CFO:  Donald H. Harnois, Jr.
      Contact no.: (760) 929-2525

Last TCRLA Headline DATE:  Friday, October 12, 2001, Vol. 2,
                           Issue 200


MAXCOM TELECOMUNICACIONES: Using Up Cash Fast
---------------------------------------------
The arrival of Fulvio del Valle and his management team has
quickly drained the cash box at Maxcom, suggests a report Friday
in Mexico City daily Reforma. Of the $80 million the company had
in their coffers at the beginning of this year, only $20 million
remains. Fulvio's management moves have been very expensive for
Maxcom, as has the decision to move operations to the high-rent
Santa Fe district. The move apparently resulted in $2 million of
out of pocket expenses, according to the report.

CONTACT:  Jose-Antonio Solbes of Maxcom Telecomunicaciones
          525-147-1125, or email
          investor.relations@maxcom.com.mx;


SL INDUSTRIES: Company Profile
------------------------------
NAME:  SL Industries, Inc.
       520 Fellowship Road, Suite A-114
       Mt. Laurel, NJ 08054

TELEPHONE:  (856) 727-1500

FAX:  (856) 727-1683

WEBSITE:  http://www.slpdq.com

Email: info@slindustries.com

TYPE OF BUSINESS:  SL Industries, Inc. designs and produces
                   proprietary advanced systems and equipment for
                   the power and data quality industry. The
                   Company's products include a wide range of
                   standard and custom power supplies; customized
                   power conditioning and power distribution
                   units; motion control systems; electric
                   utility equipment protection systems, and
                   surge suppressors. These products are sold to
                   original equipment manufacturers and
                   incorporated into larger industrial equipment
                   and systems, or sold through distribution for
                   general retail or commercial use.

SIC:  ELECTRIC LIGHTING & WIRING EQUIPMENT [3640]

EMPLOYEES (last reported count): 2,000

TRIGGER EVENT:  SL Industries Inc. on October 10 announced it
                would take a $2.5 million charge and close a
                plant in Reynosa, Mexico, adding that it is
                defaulting on some credit agreements. It also
                announced plans of consolidating operations in
                its Mexicali, Mexico facility. The company
                planned to take the steps to offset a slowdown in
                the telecommunications market.

                The company has also advised banks that it will
                be in default of the financial covenants in the
                revolving credit facility for the quarter ended
                Sept. 30. The company is recently in talks to
                amend its financial covenants for the quarter and
                beyond. The company said it is too early to
                determine the outcome of the discussions with
                creditors, noting that its ability to continue
                operations as presently conducted will be
                adversely affected if a favorable agreement is
                not reached.


CHAIRMAN/PRES./CEO:  Owen Farren

VP-FIN.& ADMIN./SEC.:  David Nuzzo

Last TCRLA Headline DATE:  Friday, October 12, 2001, Vol. 2,
                           Issue 200

To see company's latest financial statements:
http://www.bankrupt.com/misc/SL_INDUSTRIES.pdf

For further information, contact:  SL Industries Inc.
                                   Owen Farren, 856/727-1500
                                   www.slpdq.com
                                   or
                                   Neil Berkman Associates
                                   Neil Berkman/Melanie Beeler,
                                   310/277-5162 (Investors)
                                   info@BerkmanAssociates.com




VITRO: To Confront Enormous Debt In The Near-Term
-------------------------------------------------
The Vitro group is facing a debt load of $519 million coming due
in the next year, Mexico City daily Reforma reported Friday. That
amount includes a debt of $227 million in short term maturities.
According to Banamex analyst Claudia Medina, Vitro already has
total debts of over $1.6 billion. The Vitro administration is on
record saying their intention is to defer these loans, so as not
to have payments concentrated in a single year, a strategy they
are already carrying out with a $235 million credit facility
obtained in August for refinancing short-term loans.


XEROX: Reports Better Results Despite Latin American Troubles
-------------------------------------------------------------
Xerox Corporation announced Friday preliminary third-quarter
results that include an estimated $3.8 billion to $4 billion in
revenue and a loss in the range of 22 to 25 cents per share,
before net restructuring charges of 5 cents. Results were
impacted by a number of factors including a reduction of
approximately 9 cents due to currency losses from unhedged
exposures, a tax rate change, and a property insurance deductible
related to Sept. 11 losses.

"In many regards, Xerox's performance in July and August exceeded
expectations and we were well positioned to meet our third-
quarter targets," said Anne M. Mulcahy, Xerox president and chief
executive officer. "However, the events of Sept. 11 resulted in a
significant impact on sales for the balance of the month -
typically the strongest two weeks of the quarter.

"We continue to aggressively implement our cost-reduction
initiatives and focus on operational improvements. With further
progress expected in these areas, we remain cautiously optimistic
for a return to operational profitability in the fourth quarter,"
added Mulcahy.

The company also reported continued progress in strengthening its
liquidity. After the repayment of approximately $350 million in
third-quarter maturing debt, Xerox had $2.4 billion in cash at
the end of September, compared to $2.2 billion at the close of
the second quarter.

Xerox had cited problems at some of its Latin American operations
for revised sales and profit forecasts in the past. The company
revised restated earnings for the past three years in May because
some accounting practices were misapplied. Mulcahy also has said
the debt crisis in Argentina, which weakened currencies in
neighboring Brazil and Chile, has eroded profit.

Xerox continues to be in full compliance with its debt covenants
and expects the consolidated tangible net worth cushion to be
approximately $200 million.

Xerox will report its full third-quarter results on Oct. 23,
2001.

CONTACT:  Media Contacts: Xerox Corporation
          Christa Carone, 716/423-5074
          christa.carone@usa.xerox.com
          Bill McKee, 716/423-4476
          bill.mckee@usa.xerox.com



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

ANTELCO: Workers Want Parity In Bidding Race
--------------------------------------------
Workers at Paraguay's state-run telephone company National
Telecommunications Administration (Antelco) are seeking equality
from the government authorities regarding the competition for an
interest in Antelco, South American Business Information reported
October 9. Workers have requested transparent conditions, as they
don't have enough information to make an offer, while other
interested parties like Telefonica are already aware of terms and
conditions. They are complaining about the fact that the sale is
being advised by a Spanish bank (Santander) and a Spanish
advertising agency (Sanchis & Asociados).



=======
P E R U
=======

PROCACAO: Refinancing Debt To Get Back In The Black
---------------------------------------------------
Procacao, a Peruvian candies producer, will attempt to refinance
US$44 million in debts over a 10-year term at an annual interest
rate of 8 percent, South American Business Information reported
October 9. Accordingly, the restructuring plan drawn up by the
company will be analyzed by its creditors within the next months.

Procacao was prompted to refinance its debts after sales fell
nearly 50 percent between 1999 and 2000, from US$31 million to
US$16 million. Procacao reported sales of US$5 million for the
period between January and May 2001, with a negative
stockholders' equity of US$16 million.

After its restructuring, Procacao expects sales to reach US$18.5
million at first, reaching US$22.5 million per year within a 10-
year term. The company expects to be profitable as of the 4th
year, reaching US$12 million in annual profits within 10 years.




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 and Edem
Psamathe P. Alfeche, 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
written permission of the publishers.

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 240/629-3300.


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