TCRLA_Public/030616.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, June 16, 2003, Vol. 4, Issue 117

                           Headlines


A R G E N T I N A

ACINDAR: Delays $2.4M Interest Payment On Agent's Advice
AEROPUERTOS ARGENTINA: To Bid for Uruguayan Airport Concession
AMPRI: Goes Bankrupt On Creditor's Request
AUTOMOTORES ROCA: Creditors Called To Formal Meeting
CONFIABLE: Court Declares Company Bankrupt

FRANCISCO L PADILLA: Summons Creditors To a Meeting
HAVANNA: Potential Acquirer Seeks Partners
HEROMA: Reorganization Proceeds With Creditor's Meeting
HFS MEDIA: Firm, Units Start Individual Restructuring Proceedings
IDEAS Y PROYECTOS: Creditor's Request Results in Bankruptcy

IEBA: Files For the Argentine Equivalent of US Chapter 11
LABORATORIO APOLO: Files For "Concurso Preventivo"
LIVING MODERNO: Calls Creditors To Formal Meeting
MUSIMUNDO: Sale Process Suffers Setback
PAN'S COMPANY: Court Calls Creditors To Formal Meeting

PECOM ENERGIA: Seeks Approval To Pay ARS55.1 Mln in Dividends
VENTURA: Carries Out Restructuring Plan To Stave Off Bankruptcy
WELL COMPANY: Calls Creditors To Meeting


B R A Z I L

EMBRATEL: Bear Cuts Recommendation, Lowers ADR Price Target
USIMINAS: Concludes $75M Debt Offering


C H I L E

MASISA: Fitch Downgrades to 'BBB-', Negative Rating Outlook
TELEFONICA CTC: Decision to Select Expert Expected Thursday


C O L O M B I A

AVIANCA: Agrees To Settle Obligation To Tax And Customs Agency
ESAQUIN: Invites Five Investors
PAZ DEL RIO: Reports Profits Due To Rising Steel Prices


D O M I N I C A N   R E P U B L I C

TRICOM: Announces Terms of its Exchange Offer


E C U A D O R

PETROECUADOR: Striking Workers Issue Ultimatum
PETROECUADOR: Government Asks Oil Buyers To Delay Sending Tankers


M E X I C O

AHMSA: Braces For Rapid Decrease of Steel Prices
AZTECA HOLDINGS: Announces Offers to Exchange Debt
BAYERISCHE LANDESBANK: Closing Two Latin American Subsidiaries
GRUPO IUSACELL: Unit Receives Temporary Amendment, Waiver
GRUPO IUSACELL: Targets Up to 20% of Top 250 Corporations

GRUPO TMM: Provides VAT Update


P A R A G U A Y

MULTIBANCO: Central Bank Sells Credit Card Portfolio for $5.63M


V E N E Z U E L A

INTESA: To File For Bankruptcy After PDVSA Cancels Contract
PDVSA: Likely To Reduce Oil Production Following OPEC Meeting

     -  -  -  -  -  -  -  -

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

ACINDAR: Delays $2.4M Interest Payment On Agent's Advice
--------------------------------------------------------
Argentine steel company Acindar Industrias de Aceros SA chose not
to make a US$2.4 million interest payment on the June 11 expiry
date. Instead, the Company will delay the payment until "on or
around" July 3 on advice of its agent, Deutsche Bank Trust
Company Americas, in New York.

The steelmaker, which defaulted on its debt in November 2001 amid
Argentina's economic crisis, explained in a filing to the Buenos
Aires stock exchange that it needs to fulfill certain contractual
obligations. Acindar didn't specify what those obligations are.

CONTACT:  ACINDAR INDUSTRIA ARGENTINA DE ACEROS SA
          1609 Boulogne, San Isidro
          E. Zeballos Esq. Uruguay
          Buenos Aires, Argentina
          Phone: +54 11 47198500
          Fax:   +54 11 47198501
          Home Page: http://www.acindar.com.ar/ir/eng/default.htm
          Contacts:
          Lic. Jose I. Giraudo, Investor Relations Manager
          Phone: (54-11) 4 719-8674
          Fax:   (54-11) 4 719-8501 Int. 8674

          Lic. Andrea Dala, Investor Relations Officer
          Phone: (54-11) 4 719-8672
          Fax: (54-11) 4 719-8501 Int. 8672


AEROPUERTOS ARGENTINA: To Bid for Uruguayan Airport Concession
--------------------------------------------------------------
Aeropuertos Argentina 2000 (AA2000), concessionaire to the
country's 33 airports, intends to bid for the concession to
operate the Carrasco International Airport in Uruguay. The
bidding will take place on 25 June 2003, relates South American
Business Information.

Other interested bidders are Aeropuertos de Chile and a Uruguayan
consortium formed by Candysur and Neutral.

Carrasco, which is the only international airport in Uruguay, is
used by more than 1 million passengers per year.

The new operator is expected to invest some US$70 million in
infrastructure projects.


AMPRI: Goes Bankrupt On Creditor's Request
------------------------------------------
Argentine medical services company Ampri S.A. was declared
bankrupt following a request filed by its creditor Universal
Asistense SA.

Court No, 17, which is under Dr. Bavastro ruled that the Company
is bankrupt due to its failure to pay the US$28,184 it owes
Universal. Dr. Vanoli from Secretary No. 34 assists Dr. Bavastro.

The Court assigned Mr. Hugo Trejo from Cordoba Avenue as receiver
for the proceedings.

Claims will be verified until August 19.

CONTACT:  AMPRI S.A.
          Azcnuenaga No. 1507
          Buenos Aires

          Mr. Hugo Trejo
          2nd Floor
          No. 744 Cordoba Avenue
          Buenos Aires


AUTOMOTORES ROCA: Creditors Called To Formal Meeting
----------------------------------------------------
Automotores Roca S.A., which recently filed for "concurso
preventivo" at Buenos Aires Court No.1, is calling its creditors
to a formal meeting, a local source indicated, without disclosing
the intended date and place.

The Company, whose case is handled by Dr. Juan Dieuzeide of Court
No. 1, stopped meeting its financial obligations in October 2001.
Dr. Marta Belsci de Pasina, of Secretary no. 2, assists the
Court.

In the meantime, local reports did not mention whether a receiver
has been assigned to the case.

CONTACT:  AUTOMOTORES S.A.
          San Martin 575
          Buenos Aires


CONFIABLE: Court Declares Company Bankrupt
------------------------------------------
Buenos Aires Court No. 18, under Doctor Bavastro declares
Confiable SA bankrupt. The announcement came after a creditor of
the Company, Nair Taufic Wehbe, requested for the bankruptcy.

The Company owes Nair Taufic some ARS23,076.08, according to a
local source.

The Court, assisted by Dr. Trebino Figueroa of secretary No. 33
chose Ms. Amrua Tynik as receiver.

Claims will be verified until September 19, 2003.

CONTACT:  CONFIABLE SA
          Belgrano Ave. No. 1502
          Buenos Aires

          Ms. Maria Tynik
          Rivadavia Ave. No. 10444
          Buenos Aires


FRANCISCO L PADILLA: Summons Creditors To a Meeting
----------------------------------------------------
Buenos Aires Court No. 15 is calling the creditors of Argentine
company Francisco L. Padilla e Hijos S.A. to a yet-to-be-
scheduled meeting. The move is one of the first steps towards
reorganizing the Company.

Earlier, the Troubled Company Reporter - Latin America related
that the Company, which has stopped paying its dues on February
2, 2002, submitted its motion for "concurso preventivo".

The Court appointed Mr. Roberto Maglio as receiver for the
proceedings.

Claims will be verified until August 28, 2003.

CONTACT:  FRANCISCO L. PADILLA E HIJOS S.A.
          French 2251, P.B.

          Mr. Roberto Maglio, receiver
          No. 1296 Av. Corrientes
          Buenos Aires
          Phone: (005411) 4383 7586


HAVANNA: Potential Acquirer Seeks Partners
------------------------------------------
Juan Navarro, head of the Uruguayan-Argentine buyout holding
Exxel Group, is looking for investors to join him in the
acquisition of Havanna, the traditional confectionery firm
acquired by The Exxel Group in 1998. Havanna started a formal
restructuring proceeding in July 2002 and is currently managed by
a group of creditor banks.

A couple of weeks ago, Navarro presented a proposal for the
acquisition of the Company and has recently asked the banks to
keep such proposal as exclusive, at least until August 20.  With
this, Navarro wants to have more time to reach a final agreement
with his financial partners, who will contribute with most of the
funds demanded by the operation.

The creditor banks (Deutsche Bank, Citibank, Santander Central
Hispano, Creditanstalt and Sudameris) have a pledge on Havanna s
shares as a consequence of an unpaid loan granted to the company
after The Exxel Group acquired it. Navarro and the other
investors would have proposed to buy back the loan by paying
between 55% and 60% of its nominal value (US$31.5 million).

Navarro and the private investors would actually take over 70% of
Havanna, while the other 30% would remain in hands of the
Deutsche Bank. Navarro would keep between 25% and 30% of the
mentioned 70% and the rest would be given to the other investors.

Although the banks have not answered Navarro's proposal yet, they
would be willing to accept it, taking into account that his
proposal is the best, followed by the one presented by Dolphin.


HEROMA: Reorganization Proceeds With Creditor's Meeting
-------------------------------------------------------
Heroma SA is calling its creditors to a formal meeting, said a
local source, without revealing the date and place of the
meeting.

The call comes after the Company filed for "concurso preventivo"
at Buenos Aires Court No. 10, which is under Dr. Hecor Chomer.
The motion was labeled case no, 30677308504 at Secretary No. 19,
of which Dr. Fernanda D'Alesandri takes charge.

The Company ceased making debt payments on May 22 this year.

CONTACT:  HEROMA S.A.
          8th Floor
          557 Parana


HFS MEDIA: Firm, Units Start Individual Restructuring Proceedings
-----------------------------------------------------------------
HFS Media SA, Telearte SA Empresa de Radio y Television, Prime
Argentina SA and Television ABC SA, holdings that have the
license to operate the open TV channel LS 83 TV Canal 9 have
started formal, individual restructuring proceedings.  The first
of these companies is domiciled in 853 Maipu St., 3th floor,
while the other three are domiciled in 1708 Dorrego St, all in
Buenos Aires. They defaulted on their debt payments on June 6,
2003. The case is in court NÝ 16, under Judge Alfredo Kolliker
Frers; Secretariat NÝ 32, Judge Jorge Yacante.

HFS Media controls the rest of the companies and its owner is the
businessman and journalist, Daniel Hadad.

The channel has a total debt of ARS60 million (US$21 million),
divided between US dollars and pesos. The outstanding creditors
are international movies distributors, such as Warner Bros.,
Sony, Disney and Fox, with a total debt of US$ 15 million; and
local TV content producers like Endemol, Cris Morena Group and
Enrique Estevanez, with over ARS3 million.

Around 80% of the total debt originated when the Spanish
telecommunications holding Telefonica owed the channel. The
latter sold Canal 9 to HFS Media in July 2002.

When that opportunity arose, HFS Media paid Telefonica and JP
Morgan US$3 million and agreed to pay US$9 million at a later
date. HFS also agreed to absorb the debts accrued by the channel,
a condition that other investors interested in Canal 9 did not
accept.

Besides restructuring its debt, Canal 9 wants to put an end to
its constant operating deficit. By January 2001, it was losing
ARS5 million a month. Since then, it has been making an effort to
reduce operating costs, by focusing its programming grid mainly
on journalistic programs rather than fiction shows. The latter
tend to cost more. Thanks to this course of action and to a 20%
increase in advertising billing, Canal 9 managed to reduce its
monthly deficit to ARS500,000.

The Company assured that the debt restructuring proceeding would
guarantee the continuity of the channel and said they were
already renegotiating the debt with domestic creditors so as not
to interrupt programming.


IDEAS Y PROYECTOS: Creditor's Request Results in Bankruptcy
-----------------------------------------------------------
Court No. 1 declared Ideas Y Projectos SRL bankrupt, following a
request from Horacio Olmos. The Company, which is involved in
goods importing and exporting, owes Mr. Olmos some ARS8,858.

Dr. Juan Dieuzeide is in charge of Court No. 1, and Dr. Marta
Belusci de Pasina, from Secretary No. 2, assists. The Court
assigned Ms. Julia Nunez Lozano as receiver.

Credit claims will be verified until August 11, 203.

CONTACT:  IDEAS Y PROYECTOS SRL
          Ground Floor C
          No. 2175
          Cramer Street
          Buenos Aires

          Ms. Julia Nunez Lozano
          No. 3746
          Nogoya Street
          Buenos Aires


IEBA: Files For the Argentine Equivalent of US Chapter 11
---------------------------------------------------------
Argentine power holding company Inversora Electrica de Buenos
Aires (IEBA), which defaulted on US$230 million worth of bonds in
September 2001, and following the conversion of rates from US
dollars into Argentine pesos, sought court protection from
creditors, relates Business News Americas.

In a statement filed with the Buenos Aires bourse, the Company
revealed it has filed for "Concurso Preventivo de Acreedores,"
the Argentine equivalent of Chapter 11 bankruptcy in the US.

The process will entail a local judge taking control of IEBA's
remaining US$162 million in debt, and meeting with creditors to
renegotiate the payments.

IEBA is 55% controlled by Luxemburg-based Camuzzi International
through Buenos Aires Energy Company. In April, Camuzzi offered to
buy back the defaulted bonds. However, just 30% of creditors
accepted the terms, and the Company cannot pay the remaining
debts.

IEBA's only source of income is its controlling stake in Buenos
Aires province-based distributor Edea, whose cash flow has fallen
sharply because of Argentina's reduced power demand, the tariff
conversion into pesos, and the subsequent rates freeze.

United Utilities, which owns the remaining 45% of IEBA,
previously said it will not put any additional equity into the
holding.


LABORATORIO APOLO: Files For "Concurso Preventivo"
--------------------------------------------------
The Civil and Commercial Tribunal of Rosario (Santa Fe) received
a petition for "concurso preventivo" from pharmaceutical company
Laboratorio Apolo SA.

According to a report by local news portal Infobae, the Company's
case, number 30561989865, is under the jurisdiction of Rosario's
Court No. 1.

However, the report did not mention whether or not the court has
assigned a receiver to the case.


LIVING MODERNO: Calls Creditors To Formal Meeting
-------------------------------------------------
Living Moderno SA is calling its creditors to a yet-to-be-
scheduled formal meeting. The move comes after the company
applied for "concurso preventivo" at Buenos Aires Court No. 11,
which is under Dr. Miguel Bargallo.

Dr. Marcela Macchi of Secretary No. 11 assists the Court.

The Company is starting reorganization proceedings. It stopped
making payments on its debt May 27 this year.

CONTACT:  LIVING MODERNO SA
          No. 3884
          Av. Corrientes
          Buenos Aires
          Argentina


MUSIMUNDO: Sale Process Suffers Setback
---------------------------------------
The sale of the Argentine chain of record stores Musimundo to
Industria Librera Holding (Ilhsa), controller of its competitor
Yenny-El Ateneo and the investment fund Pegasus could not be
carried out finally and the pool of banks that is currently
managing the Company is now looking for new potential purchasers.

A couple of months ago, Ilhsa had reached a preliminary accord
with the creditor banks that control Musimundo in order to take
over the chain for some US$10 million.

However, the negotiations hit a dead end. Although Ilhsa will not
acquire Musimundo, Pegasus is still interested in the firm.

In view of the decline in operations, the main record companies
have decided not to supply Musimundo, since they fear the payment
troubles of the firm might grow.

Before subscribing the preliminary sale agreement with Ilhsa,
Musimundo had reached a debt restructuring accord with its
creditors, through which it will repay its liabilities with a 60%
reduction, lowering the total debt to some ARS100 million (US$ 35
million).

Musimundo is currently under the administration of a pool of
banks led by Citibank, which took over the chain after its former
owner, The Exxel Group, did not pay some bank loans. The firm is
the major CDs and cassettes seller in Argentina, with 57 outlets
and a market share of around 60%. Its main competitor is Yenny-El
Ateneo, which holds a 15% to 20% share in music sales, although
its core business involves book sales.


PAN'S COMPANY: Court Calls Creditors To Formal Meeting
------------------------------------------------------
An Argentine Court is calling creditors of Pan's Company S.A. to
a formal meeting. The Company, whose business is food-related, is
under receivership, with Estudio Cordeo, Rojas, Nunez y Asociados
as receiver.

Court No. 20, under Dr. Taillade handles the Company's case with
the assistance of Dr. Amaya, from Secretary No. 39.

The Company declared assets of at least ARS2.72 million, and
liabilities of ARS697,886.

A local source reveals that the deadline for verification of
claims is on August 25 this year, while the informative meeting
will be held on May 19, next year.

CONTACT:  PAN'S COMPANY S.A.
          Pedro Lozano Street No. 5760
          Buenos Aires

          Estudio Cordeo, Rojas, Nunez y Asociados
          Doblas 631
          Buenos Aires


PECOM ENERGIA: Seeks Approval To Pay ARS55.1 Mln Dividends
----------------------------------------------------------
Pending shareholders' approval, Pecom Energia S.A. informed
Argentina's stock exchange that it will pay a dividend of ARS55.1
million ($1=ARS2.825), says Dow Jones. The dividend, Pecom
revealed, is generated from 2002 earnings and implies a payment
of ARS0.0707 per share.

Shareholders are scheduled to meet on July 8 to approve the
dividend payment.

Pecom Energia has been owned by Petroleo Brasileiro S.A. since
Brazil's state owned oil company bought a 58.6% stake in Pecom's
parent company, Perez Companc last month with Argentine
officials' approval.

In related news, Perez Companc revealed in a filing to the stock
exchange that it wouldn't pay a dividend for its results of 2002.
Instead, the non-assigned earnings it would have used to pay the
dividend will go to settle a debt with Pecom Energia.

The decision awaits shareholders' approval at a meeting on July
8.

If approved, it would mean that some of the ARS55.1 million
dividend Pecom Energia will pay out to shareholders may be
returned to the Company by Perez Companc as a debt repayment.


VENTURA: Carries Out Restructuring Plan To Stave Off Bankruptcy
---------------------------------------------------------------
Ventura, an Argentine retailer of household appliances, is
carrying out a restructuring plan in order to avoid going
bankrupt. The plan involves the closing down of 5 stores and the
dismissal of 100 employees.

Sources from the Company say they had to carry out this plan
because the court that oversees its debt restructuring proceeding
has not yet validated the accord Ventura reached with most of its
creditors in August 2001. Since we are still legally under
restructuring, we cannot use the US$1 million we had deposited in
the ABM Amro as a guarantee for our import operations, which
expired in December 1999, stated Daniel dos Reis, president of
the company. According to Dos Reis, Ventura cannot access to
loans either and they find it hard to keep operating under these
circumstances.

Sources from the Company affirm there are third parties that have
to do with the court's slow moves in the restructuring
proceeding. They suggest one of the creditor banks would be
willing to take over Ventura and sell it later for more money.

An executive from the firm said they have the money to pay the
creditors.

We made a deposit of US$11 million in an account administrated by
judge Adela Fernandez and this sum is more than enough to settle
the debt. But none of the banks will be able to collect until the
debt restructuring accord is validated by court he added.

Dos Reis acquired Ventura in August 1999. By that time, the
Company had a debt of US$61 million, which was refinanced
afterwards. Ventura was losing ARS3.6 million a month. After a
deep restructuring process that cost ARS7 million, Dos Reis
managed to reverse the red figures in July 2000.


WELL COMPANY: Calls Creditors To Meeting
----------------------------------------
Argentine cleaning services firm Well Company SRL calls its
creditors to a formal meeting, said a local source, without
revealing the time and date of the meeting.

Earlier, the Company was reported to have asked Buenos Aires
Court No. 4, which is under Dr. Fernando Ottolenghi, to allow it
to start reorganization proceedings.

The Company stopped paying its obligations in March 2002.

CONTACT:  WELL COMPANY SRL
          Bogota 3186



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

EMBRATEL: Bear Cuts Recommendation, Lowers ADR Price Target
-----------------------------------------------------------
Bear Stearns cut its recommendation on Embratel, a subsidiary of
US telecom giant MCI (formerly WorldCom), from "outperform" to
"peer perform," reports Business News Americas.

In addition, Bear revised its end-2003 price target for
Embratel's ADR to US$2.60 from US$1.80 each. The revision follows
Bear's revised country risk premium for Brazil, which was lowered
from 1,000 basis points to 800 bps above US Treasuries.

Starting June 16, Embratel's ADR ratio will change from 1,000
shares/ADR to 5,000.

To see financial statements:
http://bankrupt.com/misc/Embratel_Participacoes.htm

CONTACT:     Embratel Participacoes
             Silvia M.R. Pereira, (55 21) 2121-9662
             fax: (55 21) 2121-6388
             silvia.pereira@embratel.com.br
             invest@embratel.com.br


USIMINAS: Concludes $75M Debt Offering
--------------------------------------
Brazilian flat steelmaker Usiminas completed a US$75 million
offer of one-year notes on international capital markets,
Business News Americas reports, citing lead manager Banco
Espirito Santo (BES).

According to BES, the Company had originally offered US$50
million, but due to stronger-than-expected demand, the Company
increased the offer to US$75 million.

The papers, which mature June 30, 2004, will yield 6.875% at a
coupon rate of 6.75%. The yield came in at the bottom end of
Usiminas' price guidance of 6.875%-7.125%, says Business News
Americas.

The conclusion of the offering came after Usiminas denied reports
that it would issue debt that would mature in at least one year,
and would be guaranteed with export receipts.

CONTACT:  Usinas Siderurgicas de Minas Gerais Usiminas PN A
          Rua Prof. Jose Vieira de
          Mendonca, 3011
          Engenheiro Nogueira
          31310-260 Belo Horizonte - MG
          Brazil
          Tel  +55 31 3499-8000
          Fax  +55 31 3499-8475
          Web  http://www.usiminas.com.br
          Contact:
          Jose Augusto Muller de Oliveira Gomes, Chairman



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

MASISA: Fitch Downgrades to 'BBB-', Negative Rating Outlook
-----------------------------------------------------------
Fitch Ratings has downgraded the foreign and local currency
ratings of Masisa S.A. (Masisa) to 'BBB-' from 'BBB'. The
company's $45 million private placement that amortizes between
2004 and 2008 has been affected by this rating action. In
addition to the downgrade, a Rating Outlook of Negative has been
assigned to the company's debt.

The rating action is the result of continued weakness in prices
for the company's main products - medium-density fiberboard (MDF)
and particleboard (PB) - in Chile, Brazil and Argentina. Pricing
weakness is a result of decreased demand for these products in
Argentina, due to the recent economic crisis, soft economic
conditions in Chile and excess production capacity in Brazil. The
downgrade also reflects concern about the demand for oriented
strand board (OSB) in Brazil, which has led to steep discounting
of this product by Masisa in that country. If the overall outlook
for wood boards in Latin America does not improve significantly
in the next twelve months, Masisa's credit ratings could be
downgraded.

Masisa generated $54 million in cash operating profits (EBITDA)
during 2002, a decline from $64 million in 2000. The poor
performance by the company came in spite of the addition of a new
OSB plant in Brazil and new MDF plants in Brazil and Argentina
during this time period. These plants cost the company
approximately $240 million to construct between 2000 and 2002. In
Argentina, the company's operating profit (EBIT) was less than $1
million in 2002, after accounting for more than $16 million of
EBIT in 2000.

Masisa ended 2002 with $147 million of cash and marketable
securities and $375 million of total debt. Almost all of the cash
and marketable securities balance is committed as collateral for
outstanding debt. Therefore, a comparison of the company's credit
quality is best made be comparing net coverage ratios. During
2002, Masisa had an EBITDA-to-net interest expense ratio of 4.0
times (x) and a net debt-to-EBITDA ratio of 4.2x. These credit
protection measures compare with 7.7x and 2.5x, respectively, in
2000.

Like all PB and MDF manufacturers within Latin America, Masisa's
financials are sensitive to economic downturns in the region.
Furthermore, with a need to export boards to Europe, Asia and
North America because of excess production capacity in the
region, Masisa is also subject to volatile international prices
for its products. Despite price and volume volatility,
historically, the company has been able to generate positive cash
flows, due to its low-cost production capabilities. These
capabilities are a result of Masisa's access to inexpensive fiber
as well as the company's modern plants and market-leading
positions. These factors have been positively incorporated into
the company's credit ratings.

Masisa's ratings also take into consideration the company's
consistent use of cash to fund a significant portion of its
expansion activities. Since 1995, Masisa has raised more than
$230 million in cash by selling minority stakes in its Chilean
and Argentine forests, selling its adhesives business to Georgia-
Pacific and issuing additional shares.

In 2002, Forestal Terranova S.A. (Terranova), a company that is
owned by Inversiones Suizandina S.A. (Suizandina), purchased a
controlling stake in Masisa. Suizandina, in turn, is indirectly
100% owned by Swiss businessman Stephan Schmidheiny. The ability
and willingness of the controlling shareholder to financially
support Masisa is positively factored into the ratings.


TELEFONICA CTC: Decision to Select Expert Expected Thursday
-----------------------------------------------------------
A decision to have a panel of experts resolve a conflict between
Chile's largest telco Telefonica CTC Chile and telecoms regulator
Subtel was expected to come in late Thursday.

Business News Americas earlier reported that Telefonica CTC has
exercised its option to have a panel decide on contentious points
in the preliminary guidelines by which it must set its rates for
2004-2005. The main point of contention is Subtel's insistence on
applying the same guidelines to corporate and residential
services.

If the two parties fail to decide on the third panel member, then
a name will be chosen at random on June 19 from the candidates
already suggested.

CTC and Subtel chose the first two members bearing in mind their
respective interests. CTC chose Clinica Indisa chairman Juan
Antonio Guzman, who was an executive at electricity generator
Gener when it was chaired by CTC chairman Bruno Philippi. Subtel
chose Mario Waissbluth, CEO of the consulting group Invertec IGT.

There are eight remaining candidates.

CONTACT:  TELEFONICA CTC CHILE
          Gisela Esobar, gescoba@ctc.cl
          Ver>nica Gaete, vgaete@ctc.cl
          M.Jos, Rodrguez, mjrodri@ctc.cl
          Florencia Acosta, macosta@ctc.cl
          Tel: 562-691-3867
          Fax: 562-6912392



===============
C O L O M B I A
===============

AVIANCA: Agrees To Settle Obligation To Tax And Customs Agency
--------------------------------------------------------------
Aerovias Nacionales de Colombia SA (Avianca) agreed to pay about
COP25.9 billion (US$9.1 million) it owes the Colombian tax and
customs agency, according to Portafolio.

The report reveals that the airline, which is based in Bogota but
is reorganizing under U.S. bankruptcy law, will pay the debt
through monthly installments in over three years at 26.6%
interest.

The agreement comes after a bankruptcy court in New York
authorized the airline to cancel debts.

Avianca, which is majority-owned by Valores Bavaria SA, filed for
bankruptcy protection on March 21 to restructure US$130 million
in debt to bondholders, aircraft leasers and suppliers.

CONTACT:  AVIANCA
          P.O. Box 151310
          Av. el Dorado no. 93-30
          Bogota, Colombia
          Phone: (1) 413 9511
                 (1) 295 8977


ESAQUIN: Invites Five Investors
-------------------------------
Struggling to stay afloat after posting losses of COP2 billion
last year, Colombia's Quindio department sanitation utility
Esaquin has invited five Colombian companies to invest in the
utility.

The companies invited, according to Business News Americas, were
Medellin multi-utility EPM; Calarca's public utility (Empresas
Publicas de Calarca); water company Aguas de Manizales; water
utility Aguas de Pereira; and Tulua's public utility (Empresa de
Servicios Publicos de Tulua). The invitees were expected to give
their answers on June 13.

According to a December 2002 liquidation study the utility
performed, Esaquin can cover 86% of its debt, of which 47% is due
to creditors. Further, 70% of utility networks are obsolete.

Without speedy financial aid, the utility may not continue
functioning.

"The only alternative the national government submitted was to
increase rates," the paper quoted department deputy Maria del
Pilar Jimenez as saying. "But if the service you provide is poor,
how can you demand increases?"


PAZ DEL RIO: Reports Profits Due To Rising Steel Prices
-------------------------------------------------------
The rise in the prices of steel from US$296/t to US$340/t in
recent months has helped Colombian steelmaker Acerias Paz del Rio
report a profit of COP19 billion (currently about US$6.7 million)
for the first four months of this year. The Company expects the
figure to top US$8.5 million for the whole of 2003.

According to Business News Americas, the Company, which is in a
form of bankruptcy protection, has until July 18 to come up with
a scheme to restructure its finances.

In order to help the ailing Company, the government has already
proposed the setting up of an investment fund, which would be
used to finance a technology revamp at Paz del Rio's plant in
Belen, Boyaca department, by leasing the Company the equipment
needed.

The plan involves setting up a fund into which workers would
contribute in return for a larger share in the steelmaker.
Workers would contribute bonuses such as those for Christmas or
length of service, or future pay rises, while retired employees
would contribute part of their pensions.

In return, the government has offered to write off debts the
Company owes state development agency IFI, and is prepared to
offer credit guarantees for APR and other facilities, as the fund
would not initially have sufficient resources.

The Company, which has a capacity of some 250,000t steel, is
owned principally by the department of Boyaca and some local
universities.

CONTACT:  ACERIAS PAZ DEL RIO S.A.
          Carrera 8 # 13-31, Pisos 7 al 11
          Bogota, D.C.
          Phone: (091) 282-8111
          Fax: (091) 282-6268 282-3480
          E-mail: apdr@multi.net.co



===================================
D O M I N I C A N   R E P U B L I C
===================================

TRICOM: Announces Terms of its Exchange Offer
---------------------------------------------
In a press release, Tricom, S.A., a regional integrated
communications provider in the U.S., Caribbean and Central
America, revealed Thursday the terms of its previously announced
exchange offer and consent solicitation with respect to the $200
million aggregate outstanding principal amount of its 11-3/8%
Senior Notes due 2004.

Tricom has filed an amendment to its Form F-4 registration
statement with the Securities and Exchange Commission (SEC)
detailing the terms and conditions of the proposed exchange offer
and consent solicitation. Upon a declaration of effectiveness by
the SEC, for each $1,000 principal amount of its 11-3/8% Senior
Notes tendered, the Company intends to offer: (i) $950 principal
amount of 12% Senior Notes due 2009; (ii) a cash payment of $50;
and (iii) warrants to purchase shares of the Company's Class A
common stock, in the form of ADSs.

The New Notes due September 2009 will pay initial annual cash
interest of 12%. Under the indenture governing the New Notes, the
Company will be required to redeem 5% of the principal amount of
the New Notes in 2007 and 2008. The New Notes will have
restrictive covenants substantially the same as those of the
existing 11-3/8% Senior Notes.

The cash payment of the exchange offer will be financed by an
equity contribution from the Company's majority shareholder, GFN
Corporation, Ltd. The exchange offer and consent solicitation is
subject to the satisfaction of several conditions, including the
receipt of tenders of at least 85% of the Company's outstanding
11-3/8% Senior Notes due 2004.

Bear, Stearns & Co. Inc. has been appointed by Tricom to act as
dealer manager. Questions regarding the exchange offer and
consent solicitation can be directed to Bear, Stearns & Co. Inc.,
at (877) 696-BEAR (2327) toll free in the United States or
internationally at (212) 272-5112.

The registration statement relating to the exchange offer and
consent solicitation has been filed with the SEC, but has not yet
become effective. This press release is not an offer to sell or
the solicitation of an offer to buy any of the securities to be
issued in the exchange offer described above. The company expects
to commence the exchange offer promptly after the SEC declares
the registration statement effective.

About TRICOM

TRICOM, S.A. is a full service communications services provider
in the Dominican Republic. We offer local, long distance, mobile,
cable television and broadband data transmission and Internet
services. Through TRICOM USA, we are one of the few Latin
American based long distance carriers that is licensed by the
U.S. Federal Communications Commission to own and operate
switching facilities in the United States. Through our
subsidiary, TCN Dominicana, S.A., we are the largest cable
television operator in the Dominican Republic based on our number
of subscribers and homes passed. We also offer digital mobile
integrated services including two-way radio and paging services
in Panama. For more information about TRICOM, please visit
www.tricom.net .

Investor Relations website: http://www.tdr-investor.com



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

PETROECUADOR: Striking Workers Issue Ultimatum
----------------------------------------------
Workers at Ecuador's state oil company Petroecuador told the
government that they will break off a progressive strike that
began Monday if the latter complies with their demands to force
energy minister Carlos Arboleda to resign.

Moreover, the workers are seeking a revision of the contract
structure offered to private oil companies, a source from the
Company told Business News Americas.

Should the government deny them their demands, the workers are
threatening to continue the strike and extend it to
Petroecuador's oil fields, the source said.

Government representatives received the ultimatum on Wednesday
morning, after negotiations with union leaders broke down. The
government was expected to have a formal answer by Thursday
morning after discussions involving President Lucio Gutierrez,
the source said.

Unions are seeking Arboleda's resignation claiming that he
represents a policy of privatization that is harmful to the
country.

Arboleda's proposed association contracts to attract private
investment are "absurd, and there is no reason for it," the
source said, adding that the contracts would give away the
country's best oil fields to foreign companies.

Arboleda, however, has said he would not resign.


PETROECUADOR: Government Asks Oil Buyers To Delay Sending Tankers
-----------------------------------------------------------------
Petroecuador officials revealed that the government asked some
buyers of its crude oil Thursday to delay sending tankers to
avoid creating problems loading the ships, as the oil workers'
strike entered its fourth day, relates Dow Jones.

Petroecuador has scheduled the loading of 720,000 barrels of oil,
half for RWE Trading and the other half for Shell Western, which
is expected to be completed by late Thursday afternoon.

Officials with the international trade section of Petroecuador
said that two companies -- Valero Energy and Shell Western --
have agreed to delay the sending of tankers.

Ecuador normally exports about 240,000 barrels a day of
petroleum. For the month of June, it is expected to load about 20
tankers.

Jorge Pazmino, a manager at the SOTE heavy crude pipeline, told
Dow Jones Newswires that that volume transported through that
pipeline on Wednesday was 255,000 barrels, a 30% drop compared
with normal levels.

But according to Faustin Valencia, President of the Federation of
Petroecuador Workers (Fetrapec), volumes on the SOTE pipeline
have dropped about 70% from normal levels.



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

AHMSA: Braces For Rapid Decrease of Steel Prices
------------------------------------------------
Francisco Orduna, a spokesperson of Mexican steelmaker Altos
Hornos de Mexico (AHMSA), revealed that the Company expects that
prices of steel, which have started to fall, may decline even
further and more rapidly in the third quarter of the year,
relates Business News Americas.

In this context, he said "vigilance" has been stepped up to avoid
dumping on the Mexican market. Moreover, the Company's annual
operations plan has been redesigned to maximize profitability in
the light of the new conditions.

Orduna also revealed that the Company will invest US$30 million
this year principally on replacement of equipment and
maintenance.

AHMSA describes itself as the country's biggest integrated
steelmaker and has two plants in Monclova, in the northern state
of Coahuila. It is Mexico's largest steelmaker in terms of
production and sale of flat products such as hot- and cold-rolled
plates, sheets and chrome-plated steel. It also makes long
products such as profiles, structures and wire rod.

The Company, which is controlled by Mexican industrial holding
GAN (Grupo Acereros del Norte), has been in a form of bankruptcy
protection for the last four years.

CONTACT:  AHMSA
          Prolongacion B. Juarez s/n,
          Monclova , Coahuila 25770
          Mexico
          http://www.AHMSA.com
          Phone: +52 86 33 81 72
          Fax: +52 86 33 65 66
          Contacts:
          Alonso Ancira Elizondo, CEO, Vice Chairman, Pres/CEO
          Jorge Ancira Elizondo, Chief Financial Officer
          Manuel Ancira Elizondo, Chief Operating Officer


AZTECA HOLDINGS: Announces Offers to Exchange Debt
--------------------------------------------------
Azteca Holdings, S.A. de C.V., the controlling shareholder of TV
Azteca (NYSE: TZA), one of the two largest producers of Spanish
language television programming in the world, announced on
Thursday its offer to exchange, subject to market and other
conditions, its new 111/2% Senior Amortizing Notes due 2009 for
its outstanding 101/2% Senior Secured Notes due 2003. In
addition, Azteca Holdings is offering to exchange, subject to
market and other conditions, the new 111/2% notes for its
outstanding 103/4% Senior Secured Amortizing Notes due 2008. The
exchange offers may be terminated or amended at any time prior to
the expiration date, July 11, 2003, unless extended by Azteca
Holdings. The exchange offers are anticipated to close on or
about July 14, 2003.

This press release is being issued pursuant to and in accordance
with Rule 135c under the Securities Act of 1933, as amended (the
"Securities Act"). The new 111/2% notes being offered have not
been registered under the Securities Act and until the
registration of the new 111/2% notes becomes effective, the new
111/2% notes may not be offered or sold in the United States
absent registration or an applicable exemption from the
registration requirement.

This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the new 111/2% notes, nor shall
there be any sale of the new 111/2% notes in any state in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any
such state.

The exchange offers are being made pursuant to an Offering
Memorandum dated June 12, 2003, and the related Letters of
Transmittal, which more fully set forth the terms and conditions
of the exchange offers.

Company Profile

Azteca Holdings, S.A. de C.V. is a holding company whose
principal asset is 55.0% percent of the capital stock of TV
Azteca.

TV Azteca is one of the two largest producers of Spanish-language
television programming in the world, operating two national
television networks in Mexico, Azteca 13 and Azteca 7, through
more than 300 owned and operated stations across the country. TV
Azteca affiliates include Azteca America Network, a broadcast
television network focused on the rapidly growing United States
Hispanic market; Unefon, a Mexican mobile telephony operator
focused on the mass market; and Todito.com, an Internet portal
for North American Spanish speakers.


BAYERISCHE LANDESBANK: Closing Two Latin American Subsidiaries
--------------------------------------------------------------
Bayerische Landesbank, Germany's second largest state-owned bank,
is closing down its subsidiary in Buenos Aires and Mexico City,
as well as some of its foreign subsidiaries, reports South
American Business Information.

Moreover, BayernLB, after reducing its workforce by 300 since
November 2002, will cut another 700 jobs by 2006, bringing the
total to more than 15% of its workforce.

Over the next three years, BayernLB aims to reduce its credit
lending to customers from EUR130 billion (US$152bn) to less than
EUR100 billion.

The measures are part of an overall restructuring package to
raise return on equity before tax from 4.9% to more than 15% by
2006.

According to Financial Times, BayernLB, 50% owned by the state of
Bavaria, is one of the largest providers of funders to the
Mittelstand medium-sized companies in the state of Bavaria and
has also expanded its international lending business.

The Munich-based bank has been badly affected by the slowing
global economy and a wave of high profile corporate insolvencies
and loan losses in Germany and the US, says FT.

BayernLB's EUR2-billion exposure to Kirch, the insolvent media
group, Philipp Holzmann, the now-defunct construction group, and
Fairchild Dornier, the insolvent aircraft manufacturer, forced
the bank to make hefty provisions.

The bank has also had to write off credits to Enron, the
collapsed US energy trader.


GRUPO IUSACELL: Unit Receives Temporary Amendment, Waiver
---------------------------------------------------------
Grupo Iusacell, S.A. de C.V. (BMV:CEL)(NYSE:CEL) ("Iusacell" or
the "Company") announced Thursday that its subsidiary, Grupo
Iusacell Celular, S.A. de C.V. ("Iusacell Celular") has received
an additional extension of its temporary Amendment and Waiver
(the "Amendment") of certain provisions and technical defaults
under its US$266 million Amended and Restated Credit Agreement,
dated as of March 29, 2001 (the "Credit Agreement"). The
Amendment was originally scheduled to expire on May 22, 2003 and,
in April 2003, it was extended to June 13, 2003.

As modified, the Amendment is now scheduled to expire on June 26
2003, subject to earlier termination under certain circumstances.
This action was obtained in cooperation with the Senior
Syndicated lender group, as part of the Iusacell's debt
restructuring effort and provides the Company with additional
time to continue working with its financial advisors, Morgan
Stanley, towards the formulation of a consensual and
comprehensive restructuring plan.

If the Amendment is not further extended, upon its expiration,
Iusacell Celular would be in default of a financial ratio
covenant under the Credit Agreement, which would constitute an
Event of Default (as defined in the Credit Agreement) as if the
Amendment had never become effective.

Additionally, the Company announced Thursday that, on June 6,
2003, Iusacell was officially notified that by disposition of the
appeal filed by the government, Mexico's Supreme Court affirmed
the October 21, 2002 ruling by a federal district court of Mexico
City in favor of Iusacell's cellular service concessionaires in
their injunction (amparo) filed against the special
telecommunications tax enacted by the Mexican Congress on January
1, 2002.

About Iusacell

Grupo Iusacell, S.A. de C.V. (Iusacell, NYSE:CEL; BMV:CEL) is a
wireless cellular and PCS service provider in seven of Mexico's
nine regions, including Mexico City, Guadalajara, Monterrey,
Tijuana, Acapulco, Puebla, Leon and Merida. The Company's service
regions encompass a total of approximately 92 million POPs,
representing approximately 90% of the country's total population.
Iusacell is under the management and operating control of
subsidiaries of Verizon Communications Inc. (NYSE:VZ).

CONTACT:  Grupo Iusacell, S.A. de C.V., Mexico City
          Investor Contacts:
          Russell A. Olson
          Phone: 011-5255-5109-5751
          Email: russell.olson@iusacell.com.mx
             or
          Carlos J. Moctezuma, Investor Relations
          Phone: 011-5255-5109-5780
          Email: carlos.moctezuma@iusacell.com.mx


GRUPO IUSACELL: Targets Up to 20% of Top 250 Corporations
---------------------------------------------------------
Fernando Zamarripa, Iusacell corporate business marketing
director, revealed that the Mexican mobile operator aims to have
10-20% of the country's top 250 corporations using its mobile
data applications by the end of 2004, relates Business News
Americas.

Iusacell's corporate data offering includes telemetry, database,
and sales force applications, among others over WAP and SMS
platforms. It has opted to partner with applications providers in
order to focus on its core strength of wireless transmission. The
Company already has business relationships with 10-15 hardware
manufacturers, systems integrators and application providers
based on different revenue sharing models, and could have 10 more
partnerships by year-end, Zamarripa said.

"We make a joint sales effort. It is very probable the first
contact (with the client) is through a Iusacell sales person or
an integrator's representative. When the project is at a more
concrete stage both companies participate," according to
Zamarripa.


GRUPO TMM: Provides VAT Update
------------------------------
Grupo TMM, S.A. ((NYSE:TMM and BMV:TMM A), TMM), announced that
on Wednesday, the Court of the First Circuit ("Federal Court"),
as published in their resolution lists, issued a resolution
("amparo") regarding TFM, S.A. de C.V.'s Value Added Tax (VAT)
Lawsuit, against the ruling of the Federal Tribunal of Fiscal and
Administrative Justice ("Fiscal Court") issued on December 6,
2002, which denied TFM the right to receive a VAT refund.

TFM is waiting to receive the official resolution from the
Federal Court and will evaluate its implications, which could
result in new legal proceedings from the interested parties. The
company will provide additional information at such time.

Headquartered in Mexico City, Grupo TMM is a Latin America's
multimodal transportation company. Through its branch offices and
network of subsidiary companies, Grupo TMM provides a dynamic
combination of ocean and land transportation services. Grupo TMM
also has a significant interest in TFM, which operates Mexico's
Northeast railway and carries over 40 percent of the country's
rail cargo. Grupo TMM's web site address is www.grupotmm.com and
TFM's web site is www.tfm.com.mx.

CONTACT:  Grupo TMM
          Jacinto Marina, CFO
          Phone: 011-525-55-629-8790
          Email: jacinto.marina@tmm.com.mx

          Brad Skinner, Investor Relations
          Phone: 011-525-55-629-8725
          Email: brad.skinner@tmm.com.mx
               or

          Dresner Corporate Services
          Kristine Walczak, general investors, analysts and media
          Phone: 312/726-3600
          Email: kwalczak@dresnerco.com
               or
          Proa Structura
          Marco Provencio
          Phone: 011-525-55-629-8758
          Email: mp@proa.structura.com.mx



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

MULTIBANCO: Central Bank Sells Credit Card Portfolio for $5.63M
---------------------------------------------------------------
Paraguay's government has sold the credit card portfolio of
Multibanco - the local bank, which authorities intervened earlier
this month due to liquidity woes, reports Business News Americas,
citing a central bank spokesperson.

The portfolio was sold to local bank Interbanco, Atlas, and
Familiar and Sudameris bank in a transaction worth PGY35 billion
(US$5.63 million).

According to the central bank source, the government plans to
proceed and sell off more assets of both Multibanco but no date
has yet been set for the new round of sales.



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

INTESA: To File For Bankruptcy After PDVSA Cancels Contract
-----------------------------------------------------------
Intesa, the Venezuelan subsidiary of US-based IT services company
Science Applications International Corporation (SAIC), is moving
to declare bankruptcy.

Citing company spokesman Ron Zollars, Dow Jones reveals that the
move comes after its state-owned partner and main client
Petroleos de Venezuela SA (PDVSA) canceled its IT services
contract.

"The only recourse we see is to proceed to bankruptcy to protect
our suppliers," Zollars told Dow Jones Newswires in a telephone
interview.

The San Diego, Calif.-based company holds 60% of Intesa while
PdVSA holds the remainder in a joint venture that began in 1996.

Zollars claimed PdVSA owes Intesa about US$50 million in unpaid
fees, took over the premises, and blocked employees' electronic
access, in a "politically motivated" shutdown of the Company last
November.

"The net result of PdVSA's actions has been to expropriate SAIC's
possessions in Venezuela," Zollars said.

PdVSA then refused to renew the contract, which ran out at the
end of 2002, he said.

Local media has reported the government plans to block the
bankruptcy, wants SAIC to pay its share of the bills to
suppliers, and then award the contract to one of several other
companies, including International Business Machines (IBM).


PDVSA: Likely To Reduce Oil Production Following OPEC Meeting
-------------------------------------------------------------
Venezuela's oil minister, Rafael Ramirez, said that state oil
company PDVSA is likely to cut oil production in August following
a scheduled meeting of OPEC ministers if Iraqi oil exports return
to about 1 million barrels a day.

In a report released by Business News Americas, Ramirez said the
government is so committed to this strategy that PDVSA has
already factored in lower output levels into its budget forecast
for the second half of the year.

At the moment, PDVSA will maintain its production at 2.9 million
barrels of oil a day in line with its OPEC quota, despite the
potential for higher production from three new reserves,
Petrolatin reports, citing PDVSA president Ali Rodriguez.

"Countries with large reserves, like Venezuela, are never happy
with production limits, but we are respecting the OPEC quota
because the priority is maintaining stability in the market,"
Rodriguez said.

OPEC ministers, including Ramirez, decided Wednesday to maintain
current production levels until they meet again in late July, the
president of the oil cartel, Abdullah bin Hamad al-Attiyah, said,
AP reported.




               ***********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter Latin American is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ,
and Beard Group, Inc., Washington, DC. John D. Resnick, Edem
Psamathe P. Alfeche and Oona G. Oyangoren, Editors.

Copyright 2003.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
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Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
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