TCRLA_Public/011029.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

            Monday, October 29, 2001, Vol. 2, Issue 211

                           Headlines



B O L I V I A

LAB: Bolivia Wants VASP Chairman And Son Arrested


B R A Z I L

CLUB MED: Subsidiary Proceeding Despite Parent's Problems
CVRD: Approves New Corporate Governance and Strategic Guidelines
CVRD: Includes Electricity Generation As One Of Core Businesses
CVRD: Acquisition of Sossego Project Confirms Copper Strategy
SOLETUR: Files For Bankruptcy Protection
VARIG: Delays Replacement Of Planes


C H I L E

COMPANIA MINERA: CVRD Still Contemplating Purchase
TELEFONICA CTC: Financial Battle Still Far From Over
TELEFONICA CTC: Trims Losses In First Nine Months Of 2001


M E X I C O

AEROMEXICO/MEXICANA: Blames Terrorist Attacks For Worker Layoffs
HYLSAMEX: Will Meet 2001 Debt Obligations Even Without Partner
MEXICANA: Pilots Agree To Suspend Salary Increase To Save Jobs
TRI-NATIONAL DEVELOPMENT: Company Profile


P A N A M A

CHIQUITA BRANDS: Company Profile


P A R A G U A Y

ANTELCO: Privatization Process Extended Until March


P E R U

AERO CONTINENTE: Plans To Expand Operations Next Year


     - - - - - - - - - - -


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

LAB: Bolivia Wants VASP Chairman And Son Arrested
-------------------------------------------------
Bolivia demanded the arrest of Vasp Chairman Mr. Vagner Canhedo
and of his son Mr. Ulisses Canhedo for allegedly applying illegal
procedures in the management of LAB (Lloyed Aereo Boliviano),
Jornal do Brasil reported Thursday.

Vasp controls LAB with 50.37 percent interest since 1995. The
Bolivian company has debts of US$50 million, losses of US$18
million and a net worth of US$60 million.

According to market sources, the Bolivian authorities are
pressuring Mr. Canhedo to sell off the shares he holds in LAB.



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

CLUB MED: Subsidiary Proceeding Despite Parent's Problems
---------------------------------------------------------
The downfall of French resort operator Club Mediterranee didn't
affect its Brazilian subsidiary, Club Med Brasil, according to a
report Wednesday in Gazeta Mercantil.

In fact, the subsidiary intends to proceed with its expansion
plans, which include building a new hotel in Trancoso, Bahia
state that will join other Club Med facilities in Rio das Pedras
(Rio de Janeiro) and Itaparica (Bahia).

The Trancoso project, which requires investments of approximately
US$23 million, is expected to be completed by the end of 2002.

Club Med Brasil accounts for 80 percent of the R$56 million
turnover generated by its sisters in South America.


CVRD: Approves New Corporate Governance and Strategic Guidelines
----------------------------------------------------------------
According to a company press release, the Board of Directors of
Companhia Vale do Rio Doce (CVRD) approved a new corporate
governance model and strategic guidelines to develop the
Company's businesses.

    -- The new governance model clearly defines the roles and
responsibilities of the Board of Directors and the Executive
Board in the formulation of strategies and the running of the
Company's businesses. The Board of Directors shall essentially
focus on the analysis and discussion of the central questions
related to the Company's future, without getting involved in
operational matters, and ensuring that the Executive Board has
more autonomy to act.

    -- The established strategic guidelines define the Company's
action focus on the areas of mining, logistics and energy. They
translate the aspiration to make CVRD a company with market value
and total shareholder return at par with its main peers.

    -- The Executive Board, led by CEO Roger Agnelli, should
focus its efforts on the challenge of devising action plans
aligned to the strategic guidelines defined by the Board of
Directors, so that targeted objectives can be achieved.

    -- CVRD's management model will drive the  Company towards
the objective of value creation. The Company's organizational
structure and senior management are already defined and other key
elements are under development to revise the main corporate
processes and incentives.

THE NEW CORPORATE GOVERNANCE MODEL

CVRD's new governance model is built on the principles of
transparency and stability needed to position CVRD on a clear
growth and value creation path.

    -- It shall be the responsibility of the Board of Directors
to define general company policies and guidelines, to evaluate
the plans and projects submitted by the Executive Board, and to
make sure that results are achieved. Company by-laws are being
revised in order to define new autonomy levels and areas of
responsibility meeting this orientation.

    -- To support the Board of Directors activities there will be
five advisory committees: strategic, financial, governance and
ethic, executive development, and auditing. The committees will
be discussion forums where the visions of its members shall be
examined. This shall help achieve greater maturity and alignment
of the ideas presented to the Board of Directors, thus helping
streamline the decision-making processes and improving decision
making quality.

    -- The composition of each committee was established to
ensure such principles as member competency, transparency,
representativeness and independence. According to the nature of
each committee, each will be made up of CVRD Board of Directors
members, CVRD executives, as well as outside professionals
without links to shareholders, who have a proven track record and
knowledge in the specific areas of the Company's businesses shall
participate in the committees.

    -- Key among the committees to be implemented is the
Strategic Committee, which will conduct discussions related to
the formulation of the Company's corporate strategy according to
the growth and value creation goals and to the strategic
guidelines and risk boundaries defined by the Board of Directors.
The Strategic Committee shall be composed by the CEO, the
Executive Director of Planning and Control and selected outside
professionals. The Strategic Committee shall be led by the CEO.

The presence of outside members and the non-representation of
CVRD Board of Directors members in this committee illustrate the
willingness to adhere to transparency and stability principles.

STRATEGIC GUIDELINES

The strategic guidelines approved by CVRD's Board of Directors
are designed to guide the efforts of the Executive Board in the
search, development and implementation of projects contributing
to growth and value creation goals and bringing the Company to
profitability and market valuation levels comparable to the CVRD
main peers.

    -- Given the consolidation of the iron ore mining industry,
CVRD should look to capture value through strategic positioning
processes, favoring the strengthening of customer relations by
vertically integrating in the value chain, deepening market
penetration and diversifying the supply of products and services
to the steel industry.

    -- CVRD should increase its participation throughout the
aluminum value chain by expanding its bauxite and aluminum
production capacities to meet the increasing global demand. At
the same time, it should look to develop medium and long term
strategic partnerships to place the Company's alumina output in
the global market.

    -- In the copper business, CVRD should develop and exploit
mining projects. It should look to develop medium and long term
business partnerships with independent smelters to place the
Company's future production of copper concentrate. Furthermore,
CVRD must develop risk management mechanisms to hedge against
copper price volatility and keep researching and prospecting new
areas targeting reserve replenishment and expansion.

    -- The logistics area should represent one of the most
significant opportunities for the Company to create value. To
that effect, CVRD should increase the efficiency of its services
and to capture value by managing services with greater added
value. CVRD should further develop its abilities to act as a
provider of integrated logistic solutions in the medium term.

>From the definition of these guidelines it is expected that each
business area should act with the methodological support from the
Planning and Control area in prioritizing existing projects and
developing new projects, all of which will be integrated into a
corporate strategic plan.

THE MANAGEMENT MODEL

To ensure the integration and to coordinate the action of the
various business areas, a new management model is under
development to redesign the way business is conducted at CVRD,
oriented towards growth and creation of shareholder value. The
new management model should deal with the elements of corporate
strategy, organizational structure, processes and management
systems, personnel management and incentives in an integrated
approach.

A key element in the new model is the new structure of the
Executive Board, which clearly defines the role played by the
business and corporate areas. The business areas are responsible
for development and business results within their sphere of
action, while the corporate functions will focus on capturing
synergies between areas by applying consistent practices for
business planning, management and control.

Key changes in the configuration of the Executive Board include:

    -- The strengthening of corporate functions with a
restructuring of the Corporate Center and the resulting creation
of three new Executive Boards:  Planning and Control, Finance,
Human Resources and Corporate Services.

    -- The configuration of the logistics area as a business
area, separated from the Ferrous Minerals Executive Board, and
the appointment of two new executive directors responsible for
each one.

    -- The separation of the Non-Ferrous Metals area from
Holdings into two executive boards and their reorientation under
a business development approach. Aside from aluminum, the
businesses initially assigned under the responsibility of this
area should be prepared to foster new growth opportunities for
the Company. These businesses would then become new executive
boards, integrating with existing businesses if synergic, or they
would be disinvested. Two new executive officers are being
appointed for the Holdings and New Business Executive
Directorship and Non-Ferrous Metals Executive Directorship.

The executives integrating the Company's new senior management
team were selected by the CEO and confirmed by CVRD's Board of
Directors. Overall, the new team brings proven experience,
expertise and a renewed willingness to face the challenges raised
by this new phase in CVRD's history.

The new management model's operational details are under
development and should be widely discussed by the members of
CVRD's new leadership team so that the model can be implemented
as soon as possible. New value metrics should also be implemented
to support the strategic planning process, so that the
corporation's objectively-quantified goals and performance can be
communicated to the market in a clear, transparent, dynamic and
consistent way at each budgetary cycle.

EXECUTIVE BOARD

    -- Roger Agnelli -- Chief Executive Officer of CVRD since
July 2001. An economist, he was previously Chairman of the Board
of Directors of CVRD, Director President of Bradespar S.A.,
Executive Director of Banco Bradesco and a Board of Directors
member of several companies, like Companhia Paulista de Forca e
Luz, Companhia Siderurgica Nacional, VBC Energia S.A. and
Brasmotor S.A.

    -- Antonio Miguel Marques -- Executive Director of Businesses
Development and Holdings. A mining engineer, he was previously
Superintendent Director of Alcoa Mineracao, Superintendent
Director of Paraibuna de Metais, Superintendent Director of
Companhia Mineira de Metais and Superintendent Director of
Votorantim Metais.

    -- Armando Santos -- Executive Director of Ferrous Minerals.
A civil engineer, he has been with CVRD for 31 years, where he
has assumed various roles such as Executive Director of the
Ferrous Division, Sales Director and, most recently, President of
Rio Doce America.

    -- Carla Grasso -- Executive Director of Human Resources and
Corporate Services. An economist, since 1997 she has been
responsible for the Directorship of CVRD's human resources,
administration and information technology departments. Previously
she occupied the post of Secretary of Complementary Security for
the Brazilian Ministry of Social Security.

    -- Diego Hernandez -- Executive Director of Non-Ferrous
Metals. A mining engineer, he was formerly President of Compania
Mineradora Dona Ines de Collahuasi, in Chile.

    -- Gabriel Stoliar -- Executive Director of Planning and
Control. A production engineer, he has been responsible since
1997 for the Executive Directorship of CVRD's Corporate Center
and Investor Relations, having been formerly a Director of
BNDESPAR.

    -- Guilherme Laager -- Executive Director of Logistics. A
civil engineer, he was formerly Logistics and Supply Director for
AMBEV.

The appointment of the Executive Director of Finance is due to be
announced shortly. Temporarily, Gabriel Stoliar will be
responsible for Finance.

CONTACT:  Roberto Castello Branco: castello@cvrd.com.br
          +55-21-3814-4540

          Andreia Reis: andreis@cvrd.com.br
          +55-21-3814-4643

          Barbara Geluda:  geluda@cvrd.com.br
          +55-21-3814-4557

          Daniela Tinoco: daniela@cvrd.com.br
          +55-21-3814-4946


CVRD: Includes Electricity Generation As One Of Core Businesses
---------------------------------------------------------------
The Board of Directors of Companhia Vale do Rio Doce (CVRD) has
included electricity generation as one of its core businesses. As
the Brazilian energy market becomes deregulated, CVRD intends to  
be a player in the wholesale market.

The Brazilian electricity market presents good prospects. CVRD
owns some of the basic competencies to thrive in the electricity
generation business, like a successful track record in managing
large projects and dealing with environmental protection issues.
Additionally, centralized planning and management of the
Company's own internal needs for electrical energy increases its
ability to implement low risk generation projects, thus reducing
capital cost. More specifically, the fact that CVRD Group is a
large consumer of electrical energy makes it possible to enter
into PPAs (Power Purchasing Agreements) that facilitate the
access to long term funding, in the form of project finance.

CVRD has an investment program in electrical power based on their
rigorous economic evaluation criteria. The Company is currently
involved in eight hydro-electrical power plants projects. Two of
them are already under operation

-- Igarapava and Porto Estrela -- and the remaining six are in
different stages of construction. CVRD's estimated investment in
the eight plants is US$ 503.5 million, with a participation in
the total installed potency equivalent to 1,007 MW.

CVRD considers the acquisition of a stake on Companhia Paranaense
de Energia -- COPEL, an opportunity with good potential to
anticipate and to increase expected earnings from its energy
investment plan. The Company's interest is solely on the
electricity generation assets.

Consequently, CVRD qualified to participate in the auction of
COPEL through a special purpose company. However; the decision to
bid for COPEL will depend on the result of the studies being
conducted regarding to the expected return on investment and the
structure of the transaction.


CVRD: Acquisition of Sossego Project Confirms Copper Strategy
-------------------------------------------------------------
The Sossego project, control of which was acquired Wednesday by
Companhia Vale do Rio Doce (NYSE: RIOpr) (CVRD), has an estimated
313 million tons in copper ore reserves, with a 1.02% copper
content and 0.3 grams of gold per ton. This open-pit mining
project -- among the most competitive in the global copper mining
industry -- has an estimated capex cost of nearly US$ 2,800 per
ton of annual production capacity and estimated cash production
cost of approximately US$ 0.32 per pound of copper concentrate.

The Sossego project is expected to start copper and gold
production by mid-2004, with an annual capacity of 140,000 tons
of high-grade copper concentrate and 3 tons of gold.

Sossego will be CVRD's first copper project to begin production
in Carajas, in the north of Brazil, where CVRD has four other
copper projects -- 118, Cristalino, Alemao and Salobo -- all of
which are in various stages of development and slated to start
production between late 2004 and 2007. In addition, CVRD is
prospecting 200 anomalies that have been identified by Company
geologists and that are likely to contain copper deposits.

Copper mining investments are an integral part of CVRD's strategy
being a profitable growth opportunity. CVRD's mine production in
Carajas will help modify Brazil's trade position, from a copper
importer -- US$ 310 million in 2000 -- to a net exporter. It will
position CVRD as one of the leading global producers.


SOLETUR: Files For Bankruptcy Protection
----------------------------------------
One of Brazil's largest and most traditional travel agencies
finally cedes to economic pressure.

According to a report Thursday in O Globo, travel agency Soletur,
with R$30 million in debt, filed for bankruptcy protection from
creditors on Wednesday.

Soletur has been battling with financial problems since 1999 when
the government let the value of the real float freely against the
dollar and the company needed to finance itself in the
international market. Despite having carried out a restructuring
process, the company failed to stabilize its accounts. The energy
crisis and the terrorist attacks in the US, which hit sales
heavily, later added up to the company's already grave situation.
The company said that the number of passengers to the US
fell from 800 per week to zero following the terrorist attacks in
New York and Washington.

The bankruptcy filing will affect about 7,000 customers who had
already paid for tourist packages. Carlos Alberto Amorim
Ferreira, chairman of Abav-RJ, the Rio de Janeiro division of the
Brazilian travel agency association, urged the sector to join
forces with airlines and the government in order to help
Soletur's customers and save the reputation of the national
tourism system. According to Mr. Ferreira, the government should
give more incentives to the tourism sector.


VARIG: Delays Replacement Of Planes
-----------------------------------
Brazilian air transportation company Varig decided to delay for
some months receiving four Boeing 737-800's that the US company
was supposed to deliver late this year, O Estado de Sao Paulo
reported Thursday.

The company, which has been planning to remove 13 737-200 models
from its existing fleet, made the decision as it struggles to
conform to the new aviation reality worldwide.

CONTACT:  VARIG Brazil
          Media Relations
          21-3814-5480



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

COMPANIA MINERA: CVRD Still Contemplating Purchase
--------------------------------------------------
Brazilian iron and steel company Cia. Vale do Rio Doce (CVRD) is
eyeing multinational Exxon Mobil's Chilean subsidiary, Compania
Minera Disputada de las Condes, EFE reported Thursday.

Buying the copper mine is part of CVRD's strategic plan to meet
greater copper demand expected in the next few years, according
to the Brazilian company's president, Roger Agnelli.

Agnelli said that his company has already hired the services of
the firm Goldman Sachs to appraise the Disputada mine. He
declined to say how much CVRD is willing to invest in the
project.

Exxon is putting the copper mine up for sale in the next few
weeks.


TELEFONICA CTC: Financial Battle Still Far From Over
----------------------------------------------------
When Bruno Philippi took over as chairman of Telefonica CTC Chile
in March, he had only one mandate -- to reverse two years of
losses at the telephone company.

However, according to a Bloomberg report released Thursday,
Philippi only accomplished part of that mandate as reflected in
the company's third quarter results. But then, the numbers at
least show that the company is improving although there's still a
long way to go.

The company, under Philippi's leadership, implemented cost
cutting measures, which helped it return to profitability,
breaking five straight quarterly losses that included a 34.9-
billion-peso loss in the third-quarter 2000.

But even if profits are higher, revenue is unlikely to recover
much after the government in May 1999 lowered the former state-
run monopoly's local calling fees for five years, stalling growth
in its principal business. Mobile telephone service sales, which
once boosted revenue, have also stalled.

Analysts say it looks unlikely Telefonica CTC will return to the
average 17 percent growth in revenue it registered in 1997 and
1998, a time when mobile services grew and the company faced less
competition and earned higher fees for local services. Estimates
by Larrain Vial SA indicate that revenue will grow 3 percent this
year, compared to last year's 4 percent drop.

The global slump in orders for telecommunications equipment and
services may also make the task harder for Philippi.

"The outlook is difficult and there aren't any miracles."
Philippi said recently.

According to analysts, even if cost cutting and sales of non-
essential assets help restore profit, he still faces a rocky road
rebuilding revenue.

"I don't expect mobile to have a good rebound," said Barbara
Angerstein, an analyst at Celfin SA. "And I don't see where they
can get growth with the fixed line service."


TELEFONICA CTC: Trims Losses In First Nine Months Of 2001
----------------------------------------------------------
Telefonica CTC Chile reduced its net loss during the first nine
months of this year to 9.392 billion pesos, compared to the
figure posted in the same period a year ago, which was 43.558
billion pesos, Reuters reported Thursday.

The smaller losses reflected a third-quarter net profit of 8.939
billion pesos, excluding extraordinary items, helped by a cost-
cutting restructuring program, the company revealed in a
statement.

The loss was in line with the average forecast by analysts
surveyed by Reuters, which had pegged the company's losses at
9.322 billion pesos.

The firm reported a nine-month operating profit of 97.741 billion
pesos, up 2.7 percent from 95.165 billion pesos in the same
timeframe in 2000.



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

AEROMEXICO/MEXICANA: Blames Terrorist Attacks For Worker Layoffs
----------------------------------------------------------------
Leading Mexican airlines Aeromexico and Mexicana are
contemplating layoffs due to the losses they have incurred after
suspending flights to the US a month ago, Mexico City daily
Reforma reported Thursday.

Aeromexico, which has a total of 7,000 workers, said it is
considering the layoff of up to 1,400, but Mexicana didn't reveal
how many it was going to sack.

Aeromexico Director Alfonso Pasquel revealed that the airline
lost 4 million dollars during the four days that flights were
cancelled.

Mexicana, on the other hand, lost $12.5 million because of the
cancellation of 80 daily flights to the United States and Canada,
according to spokesperson Fernando Martinez.

CONTACT:  AEROMEXICO
          Mayte Sera Weitzman of AeroMexico, +1-713-744-8446, or
          mweitzman@aeromexico.com

          MEXICANA DE AVIACION
          Jenny Jenks, Marketing Director, International
          Division of Mexicana Airlines, +1-210-491-9764, or
          ennyjenks@mexicana.com


HYLSAMEX: Will Meet 2001 Debt Obligations Even Without Partner
--------------------------------------------------------------
Mexican steel maker Hylsamex, which had debts of 17.466 billion
pesos at the end of the third quarter, confirmed it is going to
pay off debts due this year, even if it has not found a financial
partner by that time, Reuters reported Thursday.

"The projections for cash flow allow for the commitments for the
rest of this year to be covered without problems," suggested
Enrique Flores, spokesman for conglomerate Grupo Alfa. Hylsamex
is a unit of Alfa.

That includes interest and principal on $50 million due this
year, Flores said.

The announcement came amid analysts' speculations that company
might not be able to meet its debt payment obligations as it
struggles with effects of an international steel glut depressing
prices and the rising cost of energy.

Previously, Hylsamex announced it would consider giving up a
controlling interest in the company to a partner willing to
inject capital and help meet debt requirements. But Flores said
it was unlikely to reach such an agreement this year.

At the same time, Flores revealed that Hylsamex is in close
contact with creditor banks in an effort to extend terms of
short-term loans.

"We are in the process of revising financial situations with
creditor banks," he said.


MEXICANA: Pilots Agree To Suspend Salary Increase To Save Jobs
--------------------------------------------------------------
In an effort to retain their jobs and to help airline Mexicana de
Aviacion SA overcome a drop in passenger traffic as a result of
the terrorist attacks, Mexican pilots agreed to postpone for six
months a 7.8 percent wage increase, Bloomberg reported Thursday.

In addition, the pilots also offered to donate their overtime pay
in order to help pay part of the salaries of 135 pilots Mexicana
would have dismissed.

"The severe market contraction, the reduction in the number of
flights and routes, has led to an excess of pilots and so to
avoid seeing any of them lose their jobs we reached an accord,"
the Mexican Pilots' Association said in a statement.

Among Mexico's largest airlines, Mexicana is the carrier likely
to suffer the most from the slowdown in air travel. The airline
has reduced the frequency of its flights by 15 percent to lower
its operational costs.

"With all these measures we are securing the future of the
company so that it can remain afloat," said Fernando Martinez, a
Mexicana spokesman.


TRI-NATIONAL DEVELOPMENT: Company Profile
-----------------------------------------
NAME:  Tri-National Development Corp
       480 Camino Del Rio S., #140
       San Deigo, California  92108

TELEPHONE:  619-718-6370

FAX:  619-718-6377

WEBSITE: http://www.tri-national.com/

INVESTOR RELATIONS:  Jason Sunstein/Main Office
                     Email: jason@adnc.com

TYPE OF BUSINESS:  Tri-National Development Corp. is an
                   International Real Estate Development and
                   Management Company publicly traded under the
                   symbol, TNAV.  The Company is a fully
                   reporting Wyoming corporation and is
                   headquartered in San Diego, California.

                   The Company's projects include current and
                   projected developments in Mexico, the United
                   States, and Canada, with a current focus on
                   large scale multi-use developments in Northern
                   Baja, Mexico, approximately 45 miles south of
                   the San Diego border.

SIC:  LAND SUBDIVIDERS & DEVELOPERS (NO CEMETERIES) [6552]

TRIGGER EVENT:  Tri-National filed a voluntary Chapter 11
                bankruptcy petition in the San Diego Bankruptcy
                Court because it didn't have cash to satisfy the
                claims of its creditors.

PRES./CEO:  Michael A. Sunstein

CFO:  Gilbert Fuentes

VP, LEGAL COUNSEL: Paul G. Goss, Esq.

ATTORNEY: Colin W. Wied, Esq.

FIRM:  C.W. Wied Professional Corporation
       501 West Broadway, Suite 1780
       San Diego, CA 92101-3568
       Telephone: Direct dial: 619-338-4024
       Facsimile: 619-338-4022 URL: http://www.cwwied.com
       Web Site: http://www.lawyers.com/cwwiedpc

Last TCRLA Headline DATE:  Friday, October 26, 2001, Vol. 2,
                           Issue 210

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



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P A N A M A
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CHIQUITA BRANDS: Company Profile
--------------------------------
NAME:  Chiquita Brands International Inc.
       250 East Fifth Street
       Cincinnati, OH 45202
PHONE: (513) 784-8000

FAX: (513) 784-8030

EMPLOYEES (last reported count): 30,000

WEBSITE: http://www.chiquita.com/

TYPE OF BUSINESS:  Chiquita Brands International Inc. is an
                   international marketer, producer and
                   distributor of quality fresh fruits and  
                   vegetables and processed foods sold under the
                   "Chiquita" and other brand names.

SIC:  AGRICULTURE PRODUCTION - CROPS [0100]

TRIGGER EVENT:  The company plans to restructure under the
                protection afforded through the Chapter 11
                bankruptcy code about $861 million of public debt
                after suffering losses of more than $1.5 billion
                over eight years during a dispute with the
                European Union over EU banana imports from former
                European colonies.

PRES./CEO/DIRECTOR: Steven Warshaw

CFO/SR.VP: James Riley
          +1-513-784-6307,

DIRECTOR OF INVESTOR RELATIONS:  William T. Sandstrom
                                 +1-513-784-6366

Last TCRLA Headline DATE:  Friday, October 26, 2001, Vol. 2,
                           Issue 210

To see company's financial statement:
http://www.bankrupt.com/misc/Chiquita.pdf



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

ANTELCO: Privatization Process Extended Until March
---------------------------------------------------
The Paraguayan Reform Secretariat says that the privatization
process of government-owned telephone company Antelco has been
extended until March 2002, EFE reported Thursday.

Antelco was supposed to be auctioned in December but according to
the agency, the schedule was changed due to the complexity of the
privatization process and to the requests made by companies
interested in its purchase.

The document containing the terms and conditions was submitted on
Monday, and 13 companies from several counties, including
Argentina, Brazil, Uruguay and the United States, have until
Novemnber 19 to pose questions. The pre-qualification stage
begins on November 26 and envelopes with the bids will be opened
on March 7, 2002, an Antelco spokesperson said.

Among the firms that have expressed interest in the process are:
Paraguay's Telecel (associated with U.S.-based Millicom), Spain's
Telefoonica, Paraguay's Personal, U.S.-based AES Corporation,
Hong Kong's Hutchinson, Paraguay's Coinsa, Brasil Telecom,
Paraguay's Consorcio de Empleados de Antelco, Telecom Argentina
and Uruguay's Antel.

Joining the running in recent days are Paraguay's Rieder,
Argentina's IMPSAT and Paraguay's Consorcio de Beneficiarios
Inscritos de la Opcion Preferencial.

The "preferential option" is a benefit that Peru's constitution
guarantees to officials, suppliers and other industries linked
with the company to assure their portion of the company's shares,
once it goes private.



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P E R U
=======

AERO CONTINENTE: Plans To Expand Operations Next Year
-----------------------------------------------------
Peruvian airline AeroContinente expects to increase its market
presence and geographic reach next year, Gestion reported
Tuesday. Under the plan, the airline will open subsidiaries in
Argentina, Bolivia, Venezuela, Dominican Republic and the United
States. According to AeroContinente, expansion will be based on
franchising. The company's primary goal is to cover part of
Mercosur, reaching further into the Andean market.




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.

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