/raid1/www/Hosts/bankrupt/TCRLA_Public/011119.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, November 19, 2001, Vol. 2, Issue 226

                           Headlines


A R G E N T I N A

BANCO FRANCES: Setting Aside US$66M For Economic Risks
DAIMLERCHRYSLER ARGENTINA SA: Closing Tech School To Save Costs


B R A Z I L

ENRON CORP.: Company Profile
TRANSBRASIL: Launches Fair Promo For Funds To Cover Unpaid Wages


C H I L E

TELEX-CHILE: GTD Mulls Partnership If It Acquires Chilesat


M E X I C O

AHMSA: Making Little Progress Toward Debt-Restructuring
BURLINGTON: No Word Yet On Disposition of Mexican Operations
GRUPO CAZE: Probe Finds No Support For AG's Allegations
GRUPO MEXICO: Mandatory Trust Funding Could Mean Serious Trouble
SANLUIS: To Begin Preliminary Meeting With Bondholders
SAVIA: Shares Nose-Dive On Pulsar's Likely Default


P A R A G U A Y

ANTELCO: Troops To Protect Offices Against Striking Workers


P E R U

NBK BANK: Banco Pichincha To Invest US$16M To Facilitate Merger
SIDERPERU: Refinancing Plan Awaits Shareholders' Approval


V E N E Z U E L A

SEGUROS ORINOCO: Venezuela To Sell 16% Stake November 28


     - - - - - - - - - - -


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

BANCO FRANCES: Setting Aside US$66M For Economic Risks
------------------------------------------------------
Pedro Luis Uriarte, CEO and deputy-chairman at Banco Bilbao
Vizcaya Argentaria SA, disclosed that the company's Argentine
unit BBVA Banco Frances has made a special provision of US$66
million against "unspecified risks" arising from the country's
economic crisis, AFX-Europe said Thursday.

However, Uriarte expressed confidence that the government's new
package of economic measures will help to solve the country's
problems. Uriarte says BBVA will announce "in the next few days"
its strategy in Argentina in the wake of the announcement of the
economic program.

With respect to the proposed debt swap operation, he said BBVA
Banco Frances' response "will fit in with its vision of the
country's future."


DAIMLERCHRYSLER ARGENTINA SA: Closing Tech School To Save Costs
---------------------------------------------------------------
In a bid to reduce overhead, DaimlerChrysler Argentina SA will
close its Mercedes Benz Technical Educational School at the end
of the year, AFX-Asia reported.

"The decision is in the framework of the crisis ... of the
automobile sector. The situation has become more critical in the
past two months," DaimlerChrysler institutional relations
director Enrique Federico said.

In this context, DaimlerChrysler's policy is to "minimize fixed
costs the utmost, without this affecting personnel," Federico
informed.

"This year's budget was US$960,000. We cannot continue its
upkeep," he added.



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

ENRON CORP.: Company Profile
----------------------------
NAME: Enron Corp.
      Enron Building, 1400 Smith Street
      Houston, TX 77002

PHONE: (713) 853-6161

FAX: (713) 853-3129

WEBSITE:  http://www.enron.com/corp/

EMAIL: investor-relations@enron.com

TYPE OF BUSINESS:  Enron Corp. provides products and services
                   related to natural gas, electricity and
                   communications to wholesale and retail  
                   customers

SIC:  SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211]

EMPLOYEES:  (last reported count): 20,600

TRIGGER EVENT:  Enron has been under Wall Street and SEC scrutiny
                since mid-October when it said shareholder equity
                had been cut by $1.2 billion because of off-
                balance sheet deals with partnerships run by
                former Chief Financial Officer Andrew Fastow, who
                was later replaced. The deals are under
                investigation by U.S. regulators.

CEO/CHAIRMAN:  Kenneth Lay

CFO:  Jeffrey McMahon

Last TCRLA Headline DATE:  Friday, November 16, 2001, Vol. 2,
                           Issue 225

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


TRANSBRASIL: Launches Fair Promo For Funds To Cover Unpaid Wages
----------------------------------------------------------------
Brazilian airline Transbrasil recently offered a 69 percent
discount on fares for less than 10 percent of seats on flights to
any destination in Brazil.

According to a report in O Globo, the money raised from this
promotion will be used to pay the wages for September by November
27, with the possibility that October's wage bill may also be
settled on this date.

The total amount actually raised from the promotion so far was
not disclosed.



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

TELEX-CHILE: GTD Mulls Partnership If It Acquires Chilesat
----------------------------------------------------------
Grupo GTD, a Chilean corporate communications provider, is
analyzing a plan to incorporate a new shareholder in case it
emerges as the winning bidder for local long distance and network
operator Chilesat'S assets, Chilean financial daily El Diario
reported.

According to the report, GTD issued about US$15 million in bonds
last week, possibly to fund the acquisition.

GTD, local fixed line operator Manquehue Net and AT&T Latin
America have submitted bids for Chilesat, the primary asset of
Chilean telecom holding Telex-Chile.

Chilesat, Chile's third-largest long distance carrier, defaulted
on an US$8.9 million credit facility in April and the Telex board
subsequently recommended its sale in order to pay off creditors.



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

AHMSA: Making Little Progress Toward Debt-Restructuring
--------------------------------------------------------
Mexican steelmaker Altos Hornos de Mexico (AHMSA) is struggling
to have the suspension of its own debt payments lifted, as its
subsidiary Grupo Acereros del Norte (GAN) is still far from
completing a plan to restructure, Mexico City daily Reforma
reported Thursday.

GAN is yet to conclude its restructuring plan pending creditors'
approval of some of the issues included in the plan, like
reductions in the anticipated payments, which GAN head Alonso
Ancira is trying to propose.

GAN's creditors include BBVA-Bancomer, Inverlat, Bital, Societe
General and West LB.

Creditors of AHMSA had warned earlier that the firm is in
jeopardy after failing to meet the timetable for a restructuring
agreement.


BURLINGTON: No Word Yet On Disposition of Mexican Operations
------------------------------------------------------------
Dealing with heavy debt, tight competition from cheaper imported
textiles and a slowdown in consumer spending, Burlington
Industries Inc. filed for Chapter 11 bankruptcy protection
Thursday, AP reported. The company's primary operatiosn are in
the United States, Mexico and India.

The huge textile maker said it would reorganize to concentrate on
its Lees Carpets business, expand global business and accelerate
manufacturing improvements in its North American operations.

The filing, which included 24 Burlington subsidiaries, was made
in the U.S. Bankruptcy Court in Wilmington, Del.

"This decision was not made lightly and we believe it is in the
best interest of the long-term viability of the company," said
George W. Henderson III, Burlington's chairman and chief
executive.

Burlington also said it has received a commitment for up to $190
million in financing underwritten by J.P. Morgan Chase & Co. that
will provide adequate funding for operations during the
reorganization period.

The company anticipates no disruption to daily operations at its
headquarters and manufacturing plants or to the delivery of
customer orders. Burlington Industries is one of the world's
largest manufacturers of textiles used for apparel and interior
furnishings.

CONTACT:  press, Delores Sides, +1-336-379-2303,
          or analysts, Ross Haymes, +1-336-379-2788,
          both of Burlington Industries, Inc. (BUR)


GRUPO CAZE: Probe Finds No Support For AG's Allegations
-------------------------------------------------------
The final results of the investigation conducted by the Federal
Attorney General's office concluded that the Mexican sugar
producer Grupo Azucarero Escoprion (Caze) has not committed any
crime in relation to the allegations made by the Federal Fiscal
Attorney General several months ago.

However, according to a report in Mexican financial daily El
Economista, the PGR said it's up to the courts whether to pursue
criminal charges against the company's officials.

Caze's sugar refineries are among 27 expropriated by the federal
government.

The company is accused of illegally diverting 103 million pesos
through irregularities in the export of sugar in 1997, 1998 and
1999.

"Grupo Caze expresses its confidence in the PGR," said the
company.


GRUPO MEXICO: Mandatory Trust Funding Could Mean Serious Trouble
----------------------------------------------------------------
Grupo Mexico SA, the world's third-largest copper maker, may not
have the cash to continue operating as its revenue from exports
is being held in a trust to cover $600 million in bonds,
Bloomberg reported Thursday.

The company sold the debt between 1995 and 1997 on the condition
that export revenue would be channeled to a trust if its credit
risk rating or that of its subsidiaries dropped below a certain
level.

Fitch Inc. cut the credit rating of Grupo Mexico's mining unit to
below investment grade in October, triggering the mechanism and
putting Grupo Mexico's operations in jeopardy unless bondholders
grant a waiver. The debt, sold privately by Grupo Mexico Export
Master Trust No. 1, starts maturing next year.

"If you use all the exports sales to pay noteholders you don't
have enough money to run the company from domestic sales," said
Anita Saha, director of Latin America corporate finance at Fitch.

Negotiations with bondholders, most of which are institutional
investors, to obtain a waiver that could free up the cash to keep
its operations running are now underway, according to company
officials.

Analysts believe bondholders will grant Grupo Mexico the waiver
because if they don't they will be putting the company's
operations in serious jeopardy, increasing the chances of a
default.

"Investors would be in a disadvantageous position because they
can't run the company and they can't pay investors," Saha said.
"That's why I don't think investors will choose that route."

A waiver, if obtained, is likely to come at a price. Bondholders
have asked the company to pledge some its shares in railway
company Grupo Ferroviario Mexico SA as collateral on the debt.

Grupo Mexico is studying that possibility, a company spokesman
said, adding that they expect to reach an agreement with its
bondholders before the end of the week.


SANLUIS: To Begin Preliminary Meeting With Bondholders
------------------------------------------------------
Aiming to reach an agreement with all of its creditors before
Christmas, Sanluis Corporacion is expected to begin a preliminary
meeting with its bondholders for the restructuring of its $550-
million debt soon, Mexico City daily Reforma said in a report.

On November 8, the company met in New York with creditors
associated with its suspension parts business, including JP
Morgan Chase, Deutsche Bank, Banamex-Citibank, the Canadian
Export Development Corporation, ABM AMRO and Bancomext.

The company is using a model developed by PricewaterhouseCoopers
as the basis of its negotiations. The third-party plan describes
Sanluis as a victim of a 15-month recession in the automobile
industry.


SAVIA: Shares Nose-Dive On Pulsar's Likely Default
--------------------------------------------------
Shares in the beleaguered conglomerate Savia on Wednesday opened
down 3 percent at 2.2 pesos after falling 13 percent on Tuesday
and almost 15 percent on Monday, the Financial Times reported.

Savia's shares plummeted on fears that Pulsar, the private
holding company of Mexican entrepreneur Alfonso Romo, would not
be able to restructure its $700 million debt.

Pulsar had planned to pledge shares in Savia as collateral
against new loans, but the shares have lost more than 95 percent
of their value since the beginning of this year. Savia itself has
liabilities of $490 million.

"Pulsar's creditors are nervous," said a New York-based
conglomerates analyst. "A default looks increasingly likely."

Fears of a non-payment have been further stoked by the precarious
position of Seminis, the world's largest vegetable seed company,
and a subsidiary of Savia.

Romo had hoped to use revenues from California-based Seminis to
help pay off both the Savia and Pulsar debts. Seminis, which has
yet to book a profit, posted a 17 percent drop in sales in the
second quarter, and has debts of more than $300 million.

Seminis could be sold off to avoid a Pulsar default, however.
"The option is on the table," according to one creditor.

But analysts were skeptical creditors would find a buyer.
"Seminis is simply not an attractive investment," one Mexico-City
based analyst said.



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

ANTELCO: Troops To Protect Offices Against Striking Workers
-----------------------------------------------------------
To ensure the continued provision of telephone service, the
Paraguayan Defense Minister Miguel Angel Candia informed that
military communications experts were being deployed at the
National Telecommunications Administration (Antelco), EFE
reported Thursday.

The troops will remain in their positions until Saturday, the day
before nationwide municipal elections. Officials fear that the
striking workers from Antelco, which is in the final stages of
privatization, could try to sabotage the elections.

The workers staged a strike to protest the indemnity payments set
by the government and denounced the lack of transparency in the
process.

The communications networks in Asuncion and Ciudad del Este were
sabotaged on several occasions prior to the strike, cutting
service to a fiber optic network and basic telephone lines.



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P E R U
=======

NBK BANK: Banco Pichincha To Invest US$16M To Facilitate Merger
---------------------------------------------------------------
Banco Pichincha of Ecuador will invest US$16 million in its
recently purchased NBK Bank of Peru in order to facilitate its
merger with Banco Financiero bank, El Comercio reported.

NBK Bank's incorporation by Banco Financiero, which is majority-
owned by Banco Pichincha, has already been completed, increasing
Banco Financiero's clientele by 15,000 to 35,000 clients.

A total of 8 NBK Bank agencies have also been added to Banco
Financiero's assets.

With the merger, Banco Financiero now holds 2 percent of the
deposits and 5 percent of the local financial operations.

NBK Bank was intervened late last year after a run on deposits
stemming from President Alberto Fujimori's abrupt departure to
Japan. The bank was sold off by the Peruvian government in order
to avoid its liquidation.


SIDERPERU: Refinancing Plan Awaits Shareholders' Approval
---------------------------------------------------------
Siderperu informed Peru's stock exchange that it will ask
shareholders at their December 10 meeting to approve the Peruvian
integrated steelmaker's refinancing plan, Business News Americas
reported.

The Chimbote-based company has been in a form of bankruptcy since
August and has since been negotiating with creditors. As a
result, certain agreements have been reached. But the company
reportedly has more negotiating to accomplish.

December 14 is the reserve date for the shareholders' meeting.



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

SEGUROS ORINOCO: Venezuela To Sell 16% Stake November 28
--------------------------------------------------------
Venezuela announced a plan to put on the block November 28 its 16
percent holding in CA Seguros Orinoco insurer, Bloomberg said
Thursday.

According to the Venezuelan Deposits Guarantee Fund, the state
agency managing the sale, the minimum bid is set at $1.92
million.

One of the institutions expected to bid is Mercantil Servicios
Financieros CA, the holding company for the country's second-
largest bank. Mercantil purchased last month at least 75 percent
of Seguros Orinoco for about $37.5 million.

Venezuela acquired its shares in Seguros Orinoco during the
collapse of Banco de Venezuela SA, which had owned them. The bank
used the shares as collateral for state loans. When the bank
fell, the government seized the shares.




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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