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       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, November 5, 2001, Vol. 2, Issue 216

                           Headlines



A R G E N T I N A

BANCO RIO: American Depositary Shares To Be Delisted From NYSE
MULTICANAL SA: S&P Places On CreditWatch, Negative Implications


B O L I V I A

COTEL: To Expand, Offer New Services
LAB: Vasp’s Participation Awaits Court Decision


B R A Z I L

CONAB: To Sack Workers, Negotiating Sale Of Warehouses
EMBRATEL: Announces Plan To Raise Data Transmission Prices
EMBRATEL: Wins Injunction Preventing Against Competition
FAZENDAS REUNIDAS: Location Of Bankruptcy Trial Sparks Conflict
SOLETUR: Sintur Obtains Court Injunction To Block Assets
UOL: Brings Terminates Zip.Net’s Operations


M E X I C O

AHMSA: Hires Weston Group To Handle Bond Interchange
BUFETE INDUSTRIAL: IMSS Pushes For Payment Of Outstanding Debts



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

BANCO RIO: American Depositary Shares To Be Delisted From NYSE
--------------------------------------------------------------
In a company press release, Banco Rio de la Plata S.A. announced that
trading in the American Depositary Receipts of Banco Rio de la Plata
S.A. - ticker symbol BRS - on the New York Stock Exchange will be
suspended as of today, November 1, 2001. Following suspension, Banco
Rio expects that application will be made to the Securities and
Exchange Commission to delist the issue.

The NYSE normally considers suspending and removing from its list a
class of securities listed by a company when there are fewer than 400
holders of that class of securities. As a result of the completion of
the tender offer by Banco Santander Central Hispano, which expired on
July 19, 2000, there are currently fewer than 400 holders of Banco
Rio's ADRs.

Banco Rio is working with the New York Stock Exchange to ensure that
the delisting process is completed as smoothly and quickly as
possible. Once the anticipated delisting is complete, the company's
shares will continue to trade on the Buenos Aires Stock Exchange.

In connection with the suspension of trading and delisting of the
ADRs, the company has notified The Bank of New York, as Depositary,
that it must terminate the Deposit Agreement relating to the ADR
program on November 30, 2001, or as soon as practicable thereafter.
ADR holders should soon receive letters from the Bank of New York
which explain the holders' rights and options with respect to the
ADRs, although they are advised that they may continue to sell their
ADRs until the program is actually terminated. In addition, ADR
holders may surrender their ADRs to the Bank of New York at its
Corporate Trust Office, 620 Avenue of the Americas, 6th Floor, New
York, NY 10011, in exchange for the number of Class B Shares
represented by the ADRs they have surrendered at a fee of five cents
per ADR, plus payment of any applicable taxes or other governmental
charges.

If you have any questions relating to the sale or transfer of Banco
Rio ADRs, please contact your broker or The Bank of New York at "888
BNY ADRs." For all other questions relating to the suspension of
trading in the ADRs and the delisting, please contact Guillermo
Glattstein at Banco Rio de la Plata at (5411) 4341-1644.

CONTACT:  Luis Aragon, 54-11-4341-1254, laragon@bancorio.com.ar,
          Guillermo Glattstein, 54-11-4341-1644,
          gglattstein@bancorio.com.ar,
          both of Banco Rio;
          or
          Ana Calvo de Luis of Santander Central Hispano- NY,
          +1-212-350-3903, Acalvo.ny@siny.com,
          for Banco Rio


MULTICANAL SA: S&P Places On CreditWatch, Negative Implications
---------------------------------------------------------------
Standard and Poor’s placed on CreditWatch with negative implications
the unchanged CCC+ rating of cable television operator Multicanal SA,
AFX-Europe reported Thursday.

S&P instigated this action over concern of the maturities that the
company will face in 2002 and the increasing challenges that the
current environment present for its successful refinancing.

For more information on the company's financial statements:
http://www.bankrupt.com/misc/Multicanal.pdf



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

COTEL: To Expand, Offer New Services
------------------------------------
Cotel, the La Paz-based telecoms operator Cotel that recently formed
an alliance with Viva GSM (Nuevatel), will start providing new
services in Bolivia, such as mobile telephony, cable television and
Internet, according to a report in La Razon. The new offerings will
take the place of some of its telephone information services which the
company will no longer provide.

Following an authorization from telecoms agency Sittel, Cotel plans to
implement new pricing as of the end of this year.

Cottel’s alliance with Viva GSM was formed in order to grow mobile
telephone sales in Bolivia. Their short-term goal is to sell more than
20,000 units in La Paz.


LAB: Vasp’s Participation Awaits Court Decision
-------------------------------------------------
The Cochabamba High Court is expected to hand over its decision within
the next few days as to whether or not it will seize Vasp’s 48 percent
interest in LAB (LLoyd Aereo Boliviano) owned by the Canhedo family,
La Razon reported.

Court sources announced that the family, who spent only US$5 million
to acquire the stake, managed the Bolivian airline secretly in order
to take advantage of it.

However, market sources claimed that the legal problems faced by Mr.
Wagner Canhedo and pension funds would not hinder the definition of a
temporary management for the Bolivian airline. Lufthansa has offered
to take over LAB's management, while General Electric Capital Aviation
Service and International Leasing Financial Corporation offered 9
airplanes and US$8 million.



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

CONAB: To Sack Workers, Negotiating Sale Of Warehouses
------------------------------------------------------
State-owned Conab (Companhia Nacional de Abastecimento), the Brazilian
National Council of Supply, will be slashing its staff from 3,700 down
to 2,100, according to a report in Gazeta Mercantil.

The move comes as part of a management restructuring process, which
will also include the sale of assets and the identification of new
assignments approved by the Ministry of Agriculture.

Conab, which manages warehouses, commercializes and prices
agribusiness products, ended the first half 2001 with a loss of R$29.8
million despite the transfer made by the Treasury worth R$121.8
million for the payment of its employees. Consequently, it decided to
sell part of the R$240 million in property, plant and equipment to
improve its balance sheet.

The company is currently negotiating the sale of 58 warehouses with a
capacity of 421 m tons and 152 warehouses with a capacity of 2.2
million m tons.


EMBRATEL: Announces Plan To Raise Data Transmission Prices
----------------------------------------------------------
Embratel Participacoes SA, Brazil's largest long-distance telephone
company, on Thursday announced that it was raising prices it charges
for data transmission by up to 25 percent, depending on the size of
the client, from the start of December, Reuters reported.

Embratel, which is controlled by WorldCom Inc., issued a statement
disclosing that its data transmission prices had not been changed
since March 1997, while consumer prices had risen 50.45 percent over
the period.

Competition from companies such as AT&T, Latin America Corp. and
Impsat Fiber Networks Inc., companies that have installed fiber optic
networks in Brazil's main cities, has cut data transmission prices and
prevented Embratel from raising rates since 1997. Embratel described
pricing by competitors as “predatory.”

Meanwhile, the Rio de Janeiro-based operator warned it would also
raise some of its prices following dismal third quarter earnings
provoked by the depreciation in the Brazilian currency, the real.

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

CONTACT:  Embratel Participacoes S.A.
          Investor Relations
          Silvia M.R. Pereira, (55 21) 2519-9662
          fax: (55 21) 2519-6388
          invest@embratel.com.br
          or
          Press Relations
          Wallace Borges Grecco, (55 21) 2519-7282
          fax: (55 21) 2519-8010
          cmsocial@embratel.net.br


EMBRATEL: Wins Injunction Preventing Against Competition
--------------------------------------------------------
The ministry of justice granted Embratel Participacoes SA and National
Grid Group PLC unit Intelig an injunction preventing AT&T Corp. and
local Internet telephony service provider AloNet SA from offering
international and long distance telephony services through the
call-back system, Valor Economico reported.

According to Heitor Bastos-Tigre, the lawyer who represented Embratel
and Intelig, the evidence submitted to the ministry of justice show
that AT&T put at AloNet's disposal its networks, enabling it to
by-pass Embratel and Intelig and therefore, to develop a clandestine
and illegal long-distance telephony service.

In separate legal proceedings, Embratel and Intelig are seeking
compensation for the losses incurred and damages.


FAZENDAS REUNIDAS: Location Of Bankruptcy Trial Sparks Conflict
--------------------------------------------------------------
In a bid to move the Fazendas Reunidas Boi Gordo bankruptcy trial to
the Sao Paulo judiciary district, Attorney Antonio Manssur Filho,
filed a writ challenging the jurisdiction of the Comodoro judiciary
district (Mato Grosso state), Gazeta Mercantil Online reported.

Manssur, who represents one of the company’s creditors, asked that the
process be moved to the Sao Paulo judiciary district where the
principal establishment of the bankrupt company is located. He said
that the change of venue is fundamental so that the creditors can
accompany and police the progress of the case.

The company chose to file its bankruptcy in the Comodoro district
because its major agricultural establishment supposedly is located
there. But according to the attorney, based on documentation of the
company itself, this is not true.

He argued that, according to "doctrinaire and jurisprudential
understanding, the principal establishment of the company is that
where its nervous center, its command, functions."


SOLETUR: Sintur Obtains Court Injunction To Block Assets
--------------------------------------------------------
Sintur (Sindicato de Trabalhadores e Profissionais de Turismo do
Estado do Rio de Janeiro), representing employees in the travel
industry, managed to get a legal injunction against the bankrupt
travel agency Soletur, Valor Economico reported.

The injunction blocks the company’s bank accounts, headquarters and
another outlet. Soletur had employed 330 people and owes a total of
R$7 million.

The company declared bankruptcy and shuttered its doors due to a
long-standing financial crisis worsened by the effects of the
September 11 terrorist attacks.


UOL: Brings Terminates Zip.Net’s Operations
-------------------------------------------
As part of a restructuring process aimed at conforming to the new
economic situation, UOL (Universo Online) announced the end of
operations for Zip.Net, Jornal do Commercio reported Thursday. The
company will keep only the e-mail service ZipMail. Zip.Net contents
will be transferred to UOL, including the site Pele.Net.

UOL acquired the portal in February 2001 in partnership with Portugal
Telecom and FolhaPar in a transaction which involved a US$100 million
capital offering.

Zip.Net is currently responsible for 16 percent of the audience of UOL
’s domains or 1.4 million users from a total of 4.7 million users of
UOL.

UOL reported a loss of R$106.6 million in the first half of 2001, 35
percent higher than what was reported in the same period of 2000.



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

AHMSA: Hires Weston Group To Handle Bond Interchange
----------------------------------------------------
Leading Mexican steel producer Altos Hornos de Mexico (AHMSA), which
stopped making debt payments in May 1999, hired the Weston Group as
agent for the exchange of its bonds, Mexican financial daily El
Economista reported Thursday.

The deal, according to AHMSA, will allow it to lift its suspension of
payments. The indebted company is in the process of completing an
agreement with its bankers to restructure its debt, in order to lift
its suspension of debt payments by the beginning of next year.

The Weston Group will handle the interchange of bonds required by the
restructuring plan.

AHMSA has accumulated debt of 1.8 billion dollars, of which close to
$500 million is in the hands of bondholders.


BUFETE INDUSTRIAL: IMSS Pushes For Payment Of Outstanding Debts
---------------------------------------------------------------
Bufete Industrial was very nearly placed under embargo Tuesday when
IMSS officials arrived at the offices of the construction company in
order to confiscate furniture, computers and luxury cars in an attempt
to recoup the 60 million pesos the firm owes to IMSS, Mexican
financial daily El Economista reported.

IMSS officials pressured Bufete representatives to pay their debt,
outstanding since 1997. The firm's representatives made out a
guarantee for 5 million pesos to buy time while the group's
subsidiaries - Servicios Descentralizados Bufete Industrial;
Ingenieria y Fabricacion Maritimas and Coparcom - suffered the same
fate.

The company is currently facing one of the most complicated financial
crises of its history, as it is unable to pay its debts of over $400
million.

Bufete is awaiting the go-ahead from Pemex for its part in Bolanos'
Altamira petrochemical complex project estimated to be worth $3
billion to the company.




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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