/raid1/www/Hosts/bankrupt/TCRLA_Public/030701.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                   L A T I N   A M E R I C A

          Tuesday, July 1, 2003, Vol. 4, Issue 128

                           Headlines



A R G E N T I N A

ARGENTINE UTILITIES: Congress Set To Approve Utility Rates Hike
ASOCIACION ISRAELITA: Submits Motion For "Concurso Preventivo"
CGC: Creditors Agreement Includes $70M from Southern Cross
CORREO ARGENTINO: Concession Contract Renewal in Jeopardy
GUSTAVO LOPEZ: Submits Motion For "Concurso Preventivo" to Court

INCOYTE: Files Initial Bankruptcy Proceeding Papers
LOGUI: Under Receivership Following "Concurso" Filing
LOMA NEGRA: Uruguay's ANCAP Proposes Merger to Restructure
PEAL: Seeks Court Permission To Start Reorganization
SENDOS: Court Calls Creditors To Formal Meeting

SORVET: Takes First Move Towards Reorganization
TECMO: Creditor Request Leads to Involuntary Bankruptcy
TEXTIL ALTAS CUMBRES: Court Declares Bankruptcy


B E R M U D A

ELAN: Doubts Cast on $2 Billion Debt Payment Status


B R A Z I L

CEMAR: Five Firms Vie For Control
COPEL: Parana Governor Suspends 25.27% Rate Increase
ENRON: Gets Tentative Agreement With Creditors on Extension
GERDAU: North American Subsidiary Closes Private Offering


C H I L E

ENDESA CHILE: Threatens Legal Action Against Government
ENERSIS: Liquidity Improves with $2B Capital Increase


D O M I N I C A N   R E P U B L I C

BANINTER: DR Government Angling for IMF Aid


M E X I C O

CYDSA: Bondholders Meet To Discuss Potential Default Cures
IUSACELL: Seeks Amendment, Waiver Extension on Credit Agreement


P A N A M A

CHIQUITA BRANDS: Transfering Puerto Armuelles Unit to Workers


T R I N I D A D   &   T O B A G O

BWIA: Expects $30M More from Government for Operating Costs
CARONI: Guilty of Industrial Relations Offense, Rules Court
CARONI: Union Heads Urge Government To Heed Court Ruling


V E N E Z U E L A

PDVSA: Must Define Privitization Contract Structure By Year-End
SIDOR: Sivensa Takes Part in Restructuring


     - - - - - - - - - -

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

ARGENTINE UTILITIES: Congress Set To Approve Utility Rates Hike
---------------------------------------------------------------
Argentine President Nestor Kirchner is likely to gain support
from congress over a plan to increase utility rates, which have
been frozen since the government devalued the currency in January
last year, indicates Bloomberg.

Eduardo Camano, the president of Argentina's lower house of
congress, and Jose Maria Diaz Bancalari, head of the ruling
Peronist party bloc in the lower house, told Economy Minister
Roberto Lavagna they would agree to a presidential decree
allowing utilities to raise the price of electricity and gas.

The International Monetary Fund (IMF) has repeatedly asked the
government to allow rate increases after a 70% drop in the
country's currency last year left most utilities with dollar-
denominated debts and revenue in pesos.

Last week, Argentina promised IMF officials who recently visited
that it would agree to new utility pricing this year.


ASOCIACION ISRAELITA: Submits Motion For "Concurso Preventivo"
--------------------------------------------------------------
Argentine newspaper Clarin reports that the National Commercial
Court of First Instance received a motion of "Concurso
Preventivo" from the Asociaci¢n Israelita de Beneficiencia,
Educaci¢n y Culto David Wolfsohn.

Court No. 1, under Dr. Eduardo Favier Dubois, assigned Estudio
Moyano Guelman y Asoc. as receiver for the proceedings. The Court
set August 25 as deadline for the verification of claims. The
receiver is required to submit the individual reports on October
3, and the general report on November 14 this year. Creditors are
called to an information assembly on June 7 next year.

CONTACT:  Estudio Moyano Guelman y Asoc.
          Riobamba 1224/34
          6 Piso 'D'
          Buenos Aires
          Phone: (005411) 4813 7140


CGC: Creditors Agreement Includes $70M from Southern Cross
----------------------------------------------------------
Argentine court 'Juzgado Nacional de Primera Instancia en lo
Comercial Nø 15' confirmed that petrol company, Compa¤¡a General
de Combustibles, has reached an agreement with creditors, relates
La Nacion.

The agreement includes Explore Acquisition, controlled by
Southern Cross Latin America Private Equity Fund II, investing
US$70 million in the company.

Earlier, Troubled Company Reporter - Latin America revealed that
CGC had planned to carry out a capital reduction to address
accounting issues, and then Explore would subscribe to 100% of a
ARS70 million (US$25 million) capital increase. CGC would use the
capital increase to pay creditors 15% of its US$200 million debt.
As part of the agreement, creditors would accept the remission of
CGC's remaining debt.


CORREO ARGENTINO: Concession Contract Renewal in Jeopardy
---------------------------------------------------------
Argentina's new government is considering its options before
renewing the concession with Argentinean mail, Correo Argentino.
The news confirms signs that the relationship between the parties
is still very bad.

Just recently, the 'Comisi¢n Nacional de Comunicaciones, CNC',
the entity in charge of controlling the mail services, ordered
Correo Argentino to lower the international services price and
forbade the Company from returning to the State some 114
buildings that are currently not in use.

Correo Argentino, led by the businessman Mr. Francisco Macri,
member of the Macri Holding group, has debts totaling nearly
US$450 million. The Company is in Concurso already, and has until
next October to reach an agreement with creditors.

According to Correo Argentino' lawyers, the Company is working on
a scenery known as 'cram down', by which a creditor, in this case
the State, can equal the offer made by the Company in trouble to
the other creditors and keep in this way with the Company's
shares.


GUSTAVO LOPEZ: Submits Motion For "Concurso Preventivo" to Court
----------------------------------------------------------------
Gustavo Lopez y Cia. S.A., maker of agricultural products has
presented its motion for "Concurso Preventivo" to Court No. 16 of
Buenos Aires, which is under Dr. Kolliker Frers. The Company
ceased making debt payments at the end of last year.

CONTACT:  Gustavo Lopez y Cia. S.A.
          Paraguay 1551
          Piso 3
          Buenos Aires


INCOYTE: Files Initial Bankruptcy Proceeding Papers
---------------------------------------------------
Argentine telephone parts maker Incoyte filed for "concurso
preventivo" at Buenos Aires Court No. 5, relates local newspaper
Clarin. The Company, based on Zuviria 5561, may start
reorganization proceedings upon the Court's approval.


LOGUI: Under Receivership Following "Concurso" Filing
-----------------------------------------------------
Household items distributor Logui S.A. is in the hands of
receiver Mr. Agustin Lull, following the Company's filing of its
motion for "concurso preventivo" at the Civil and Commercial
Tribunal of Bahia Blanca.

Court No. 8 of Bahia Blanca assigned the receiver with
instructions to verify claims until August 29 this year.

CONTACT:  Mr. Agustin Lull
          Sarmiento 548
          Bahia Blanca


LOMA NEGRA: Uruguay's ANCAP Proposes Merger to Restructure
----------------------------------------------------------
Argentine cement company Loma Negra, which is in the midst of a
US$500-million debt restructuring, received a proposal from
Uruguay's 100% state-owned fuel, alcohol, and cement company,
Administracion Nacional de Combustibles Alcohol y Portland
(ANCAP).

According to a report by Infobae, ANCAP's proposal, which
includes the fusion of both companies, might help Loma Negra
survive the difficult situation that is undergoing at the moment.

Loma Negra is owned by businesswoman Amalia Lacroze de Fortabat.


PEAL: Seeks Court Permission To Start Reorganization
----------------------------------------------------
Argentine company Peal S.R.L. is seeking the Court's permission
to start its reorganization process, reports local newspaper El
Cronista Comercial. The Company, domiciled at Arenales 1947, has
submitted its "concurso preventivo filing" at Court No. 13 of
Buenos Aires, which is under Dr. Juan Carlos Villar.


SENDOS: Court Calls Creditors To Formal Meeting
-----------------------------------------------
Court No. 21 of Buenos Aires calls creditors of Sendos S.A. to a
formal meeting, said a local source. The Company stopped making
debt payments in February this year. Mr. Jose Luchetti was
assigned a receiver for the case. Claims verification will be
ongoing through August 28.

CONTACT:  Jose Lucchetti
          10th Floor
          La Rioja Street No. 1746
          Buenos Aires
          Phone: 43079224


SORVET: Takes First Move Towards Reorganization
-----------------------------------------------
Argentine ice cream company Sorvet S.A. has formally initiated
its reorganization by filing a motion for "Concurso Preventivo"
at the Buenos Aires Court No. 24. Infobae reports that Mr. Hugo
Bergert is assigned receiver for the case. He is expected to
submit the individual reports on September 16 and the general
report thirty days after that. Creditors are advised to have
their claims verified before the 15th of August this year.

CONTACT:  Mr. Hugo Borgert
          Presidente Peron 853
          Buenos Aires


TECMO: Creditor Request Leads to Involuntary Bankruptcy
-------------------------------------------------------
Court No. 18 of Buenos Aires puts Tecmo S.R.L. under bankruptcy,
granting a request from its creditor, Jose Maria Seoane,
according to a local source. The Court, which is under Dr. German
Paez Castaneda, assigned Mr. Luis Maria Gustavino as receiver.
Creditors are advised to have their claims verified by November
27, 2003.

CONTACT:  Luis Maria Gustavino
          Ground Floor
          Nicolas Repeto Street No. 1115
          Buenos Aires
          Phone: 45829598


TEXTIL ALTAS CUMBRES: Court Declares Bankruptcy
-----------------------------------------------
Court No. 7 of Buenos Aires, which is under Dr. Juan Gutierrez
Cabello places textile maker Textil Altas Cumbres S.A. under
bankruptcy. The ruling comes after the Company's creditor, Maria
Buenaventura Sosa Vera, filed a request on the basis of a
$3872.85 debt.

Mr. Carlos Llorca is assigned receiver for the process. The
deadline for verification of claims is September 19 this year.

CONTACT:  Mr. Carlos Llorca
          Carlos Pellegrini 385
          3 Piso A
          Phone: 43945350



=============
B E R M U D A
=============

ELAN: Doubts Cast on $2 Billion Debt Payment Status
---------------------------------------------------
A top executive at Elan Corp. indicated that the Irish drugmaker
is likely to default on debt payments of US$2 billion. Citing a
Bloomberg Business News Thursday report, the Royal Gazette
reveals that the threat comes at the back of delays in accounting
for research joint ventures Elan established in Bermuda. The
delays in reporting its 2002 results lets creditors demand
immediate payment of as much as US$2 billion, putting the company
at risk of default.

"We don't have the cash on hand if all the debt comes due in the
next two or three months," chief executive officer Kelly Martin
said in an interview with Bloomberg. "The worst case scenario is
the debt structure is accelerated, and that's an unacceptable
option to run and operate the company."

Elan has been in hot water since two years ago when the US
Securities and Exchange Commission started probing partnerships
that the Company's former managers set up to keep research costs
off its balance sheet. Elan can't file its annual report until it
finishes negotiations with the SEC, begun in February 2002, over
accounting for the off-balance-sheet partnerships.

The Company's market value sank to US$1.8 billion from US$26
billion after the SEC lodged the investigation.



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

CEMAR: Five Firms Vie For Control
---------------------------------
Sinval Zaidan Gama, the executor of the auction of Companhia
Energetica do Maranhao (Cemar), revealed that there are now five
firms competing to take over the former Brazilian unit of U.S.-
based PPL Corp. (PPL), relates Dow Jones. The five bidders, which
include three Brazilian, one U.S-based, and one of undisclosed
origin, are currently going over Cemar's books and are
simultaneously preparing documentation demonstrating their
financial health as part of a pre-qualifying process, says the
report.

Once pre-qualified by the regulator Aneel, the firms will have
until July 25 to submit their final proposals. Aneel will
announce the winner on August 11.

Zaidan Gamas has said that control of Cemar "will be granted to
the company whose proposal contains the best debt restructuring
and long-term investment plan."

Cemar is struggling with a debt load of nearly BRL760 million
($1=BRL2.90), most of which is owed to federal electricity
holding Centrais Eletricas Brasileiras, or Eletrobras, and its
northeastern generating unit Eletronorte. People familiar with
the matter said some potential investors are calling for the
pardon of about 40% of Cemar's debt. The remaining 60% wouldn't
be paid up immediately, but rather rescheduled in medium-to-long-
term payments.

The Company came under Aneel's control after filing for the
equivalent of a Chapter 11 bankruptcy last August.

Cemar distributes electricity to about 1 million people in
Maranhao, one of the country's poorest states.

CONTACT:  COMPANHIA ENERGETICA DO MARANHAO
          Av. Colares Moreira, 477
          65075-441 - Sao Luiz- MA
          PHONE: (98) 217-2119
          FAX: (98) 235-3024
          WEBSITE: http://www.cemar.com.br/

CREDITORS:  CENTRAIS ELETRICAS BRASILEIRAS S.A. - ELETROBRAS
            Avenida Presidente Vargas 409, 13 Andar
            20071-003 Rio de Janeiro Brazil
            Phone: (21) 2514-5151
            Fax: +55-21-2242-2697
            Home Page: http://www.eletrobras.gov.br
            Contacts:
            Cladio da Silva avila, President
            Jose Alexandre Nogueira de Resende, Director of
                                  Financial and Market Relations

            Investor Relations Division
            Phone: (0XX21) 2514-6207 / 2514-6333
            Av. Presidente Vargas, 409 - 9  andar
            20071-003 - Rio de Janeiro - RJ
            Email: arlindo@eletrobras.gov.br

            CENTRAIS ELETRICAS DO NORTH DO BRAZIL - ELETRONORTE
            Av. Presidente Vargas, 489 -13  andar.
            20071-003- Rio do Janeiro RJ
            Phone: + (55+61) 429 5139
            Fax: +(55+61) 328 1373
            E-mail: elnweb@eln.gov.br
            Home Page: http://www.eln.gov.br/
            Contact:
            Mr. Arlindo Soares Castanheira, Investor Relations
            Phone: 55 21 2514.6331
                   55 21 2514.6333
            Fax: 55 21 2242.2694
            E-mail: arlindo@eletrobras.gov.br

            FLEETBOSTON FINANCIAL CORP.
            100 Federal Street
            Boston, MA 02110
            Phone: (617) 434-2200
            Fax: (617) 434-6943
            URL: http://www.fleet.com/home.asp


COPEL: Parana Governor Suspends 25.27% Rate Increase
----------------------------------------------------
Brazil's Parana state governor Roberto Requiao suspended the
25.27% electricity rates hike granted by the national power
regulator Aneel for state utility Cia. Paranaense de Energia
(Copel) on June 24, reports Business News Americas.

"Parana will not carry out this increase because of the heavy
impact it would have on our economy," Requiao said. The increase
could see companies go bankrupt when what the government seeks is
for them to increase production and therefore jobs, he explained.

In addition to rejecting the increase, the state government will
give a 25% discount to Copel's commercial and residential clients
that pay their bills on time.

To maintain Copel profitability, the state government chose to
implement a "reasonable" rates adjustment that many people could
pay instead of a high adjustment that only a few could pay, the
governor said. The 25% discounts will also be offered to people
paying late bills.

"We're making possible the recovery of the debt represented by
late bills," he said.

Since taking office in January, Requiao has ordered Copel to
suspend payments for power bought from the Argentine unit of
Spain's Endesa SA and to El Paso Corp.'s Araucaria gas-powered
plant. Copel, Brazil's second-largest combined power generator
and distributor, serves about 10 million customers in Parana.

CONTACT:  Cia Paranaense de Energia COPEL
          Rua Colonel Dulcidio, 800
          Batel
          80420-170 Curitibia - PR
          Brazil
          Phone: +55 41 322-3535
          Fax  +55 41 224-4312
          Home Page: http://www.copel.com
          Contacts:
          Ary Queiroz, Chairman


ENRON: Gets Tentative Agreement With Creditors on Extension
-----------------------------------------------------------
Enron announced Friday that the company, its Official Unsecured
Creditors' Committee and the Enron North America Examiner have
filed a joint motion with the Bankruptcy Court of the Southern
District of New York requesting an extension until July 11 to
file the company's Plan of Reorganization.

"This very short extension, if granted, will allow us to finalize
an agreement we have reached in principle between the official
representative of all our creditors and the court-appointed plan
facilitator of the Enron North America estate," said Stephen F.
Cooper, Enron acting CEO and chief restructuring officer. "We
believe that the extension will ultimately expedite our court
proceedings, and we are hopeful that the court will approve our
motion. We are very pleased with the prospect that the plan will
have the support of both the Creditors' Committee and the ENA
Examiner."

If the joint motion is granted by the Bankruptcy Court on June
30, the company will file its plan of reorganization and
disclosure statement by July 11.


GERDAU: North American Subsidiary Closes Private Offering
---------------------------------------------------------
Gerdau Ameristeel Corporation (TSX:GNA.TO) announced Friday the
closing of the private offering of its 10.375% Senior Unsecured
Notes due 2011 at 98.001% of face amount and the initial draw-
down under its new senior secured credit facility.

The net proceeds from the sale of the Senior Notes totaled
approximately $389.5 million, before expenses, and cash proceeds
from the initial draw down were approximately $142.5 million. As
previously announced, the proceeds from the Senior Note offering
and the initial draw-down under the new senior secured credit
facility were used by Gerdau Ameristeel to repay indebtedness
under its existing credit facilities.

The refinancing has significantly extended the Company's debt
maturities and provided a more permanent capital base. The
offering of the Senior Notes was not registered under the U.S.
Securities Act of 1933 and the Senior Notes may not be offered or
sold in the United States absent such registration or an
applicable exemption from registration requirements."

CONTACT:  Osvaldo Burgos Schirmer
          Executive Vice President
          Investor Relations Director

          Press Office +55(51) 3323-2170
          imprensa@gerdau.com.br
          www.gerdau.com.br



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

ENDESA CHILE: Threatens Legal Action Against Government
-------------------------------------------------------
Chilean energy company Endesa Chile said it would take legal
action against the government if it is prevented from operating a
hydroelectric dam on lands inhabited by Indians, reveals Reuters.
Under a ruling issued by a court earlier last month, Endesa could
continue building the 540 megawatt dam, Ralco, which is now 85%
complete. However, the Company cannot flood the indigenous lands.

Endesa has appealed the ruling.

"If a judge finally decides that the project cannot go ahead, and
that this permit was not valid, we will have no other option but
to sue those responsible for authorizing us to start construction
with an invalid environmental permit," said Hector Lopez, chief
executive officer of Endesa.

The threat came after Endesa Chile failed to reach an extra-
judicial settlement with four Pehuenche indigenous families
living on land Endesa needs to flood to operate the US$530-
million power station, due to come on-stream in 2004.

Endesa said the four Pehuenche families were demanding a total of
US$4 million in compensation, which the Company says is
unacceptable and has offered a maximum of $400,000 as well as 700
hectares of land elsewhere.


ENERSIS: Liquidity Improves with $2B Capital Increase
-----------------------------------------------------
Chilean power sector holding company Enersis on Thursday sold
US$1.47 billion of new stock, or 71% of the total US$2-billion
capital increase authorized by shareholders, Business News
Americas reports, citing a company statement.

The statement reveals that minority shareholders bought US$252
million, and international investment company Elesur, through
which Endesa Spain owns Enersis, bought US$1.22 billion. Endesa
subscribed to the increase through the capitalization of inter-
company loans from Elesur to Enersis.

Subscription by minority shareholders reached a peak of US$65.9
million on June 26, and on June 25 was US$36.9 million, the
statement said.

The period for shareholders to subscribe to the capital increase
ends June 30, and the preferential period for shareholders
outside the Endesa group for the remaining shares will begin in
November.

The capital increase also includes a buyback of bonds issued on
the Chilean market. From November 1-15 holders will be able to
exchange their bonds for Enersis stock at 60.4202 pesos a share,
the same price as the new stock issued in the increase.

Business News Americas recalls that Endesa has previously said it
will buy any shares that are not subscribed by shareholders or
bondholders.

CONTACT:  Enersis SA
          Avenida Kennedy Vitacura No 5454
          Santiago Chile  1557
          Phone: +56 2 353 4400
          Fax:  +56 2 378 4768
          Home Page: http://www.enersis.cl
          Contacts:
          Engr Alfredo Llorente Legaz, Chairman
          Engr Rafael Miranda Robredo, Vice Chairman

          Endesa SA
          Principe de Vergara 187
          28002 Madrid
          Spain
          Phone: +34 91 213 10 00
          Fax:  +34 91 563 81 81
          Telex:  22917 ENE
          Home Page: http://www.endesa.es
          Contacts:
          Rodolfo M. Villa, Chairman
          Rafael Miranda Robredo, Managing Director



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

BANINTER: DR Government Angling for IMF Aid
-------------------------------------------
The Dominican Republic government is seeking to raise fees and
tariffs in an effort to qualify for financial aid from the
International Monetary Fund (IMF), reports Business News
Americas. The country is seeking a two-year emergency aid package
from the IMF, World Bank and Inter-American Development Bank to
contain the crisis stemming from last month's collapse of Banco
Intercontinental SA, the second-largest bank, said Luis Reyes,
economic adviser to Planning Minister Carlos Despradel. The bank
collapse was triggered by $2.2 billion in fraud-induced losses.

President Hipolito Mejia said he would impose the new economic
measures in July to comply with IMF demands to get access to the
US$1 billion in financing. Mr. Mejia said he would introduce a
new 0.15% fee on all checks cleared by the central bank, a
temporary 2% tariff increase on imports and raise the airport tax
(when leaving the country).



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

CYDSA: Bondholders Meet To Discuss Potential Default Cures
----------------------------------------------------------
About 57% of holders of US$159 million of bonds that Mexico's
Cydsa SA defaulted on in December held a meeting in London to
discuss early payment of the bonds. According to Bloomberg, the
Company's bondholders agreed in the meeting to call for immediate
payment of the 9.375% bonds due in 2009. They also chose Fintech
Advisory Inc., the largest bondholder, to lead negotiations with
the Company, said David Martinez, Fintech's managing director.

The vote allows bondholders to take Monterrey, Mexico-based Cydsa
to bankruptcy court to recover the debt, which would mark the
first big test under a law passed in 2000 designed to speed up
bankruptcy rulings that previously took as much as several years,
relates Bloomberg

"We want a negotiated settlement," Martinez said. "But if that's
not possible, we'll go to bankruptcy court. We now have the
ammunition to do that."

Cydsa, maker of yarn and air-conditioner refrigerants, saw its
profits plummet following fierce competition from Asian textiles
and falling demand and prices for chemicals. As a result of the
slump in profits, the Company couldn't keep up with interest
payments.

CONTACT:  CYDSA, S.A. DE C.V., IN MEXICO
          Jesus Montemayor, Treasury Director
          +011-528-18-152-4585
          E-mail: jmontemayor@cydsa.com


IUSACELL: Seeks Amendment, Waiver Extension on Credit Agreement
---------------------------------------------------------------
Grupo Iusacell, S.A. de C.V. (BMV:CEL) (NYSE:CEL) ("Iusacell" or
the "Company") announced on Friday that its subsidiary, Grupo
Iusacell Celular, S.A. de C.V. ("Iusacell Celular") formally
requested an additional extension of its temporary Amendment and
Waiver (the "Amendment") of certain provisions and defaults under
its US$266 million Amended and Restated Credit Agreement, dated
as of March 29, 2001 (the "Credit Agreement"). The lenders under
the Credit Agreement acknowledge receiving the Iusacell Celular
request and are currently considering and evaluating the
Company's request.

During the first half of 2003, Iusacell Celular exceeded the
permitted leverage ratio under the Credit Agreement of 2.50. On
April 28, 2003 Iusacell Celular and the lenders entered into a
temporary amendment and waiver to the Credit Agreement to
increase the permitted leverage ratio from 2.50 to 2.70. On May
22, 2003, the Amendment was extended until June 13, 2003 and on
June 12, 2003, the Amendment was further extended until June 26,
2003.

The Amendment has expired, which resulted in an event of Default
(as defined in the Credit Agreement) as if the Amendment had
never been executed. Accordingly, the lenders under the Credit
Agreement have the right to declare the indebtedness under their
loan immediately due and payable.

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.



===========
P A N A M A
===========

CHIQUITA BRANDS: Transfering Puerto Armuelles Unit to Workers
-------------------------------------------------------------
Chiquita Brands International Inc. was due to transfer Monday one
of its cash-strapped divisions to a worker-owned cooperative in
northern Panama, reports the Associated Press. The Puerto
Armuelles Fruit Co.'s union agreed in April to pay US$20 million
to buy the Company its members work for. The ownership transfer
guarantees that the Cincinnati-based fruit giant will buy bananas
from its former division for at least 10 years.

Puerto Armuelles' 3,200 workers produced about 6% of Chiquita's
Latin American banana supply, but the Company cut off subsidies
to the division in January, announcing that it had lost US$90
million in six years because of Puerto Armuelles.

The ownership transfer is one of the largest such handovers in
the banana-growing industry's history.

"It's a historic event ... it's a lot of responsibility for us,"
union director, Edgard Williams, said in an interview Sunday.
"Our goal is to make this division productive and profitable."



=================================
T R I N I D A D   &   T O B A G O
=================================

BWIA: Expects $30M More from Government for Operating Costs
-----------------------------------------------------------
BWIA is likely to get $30 million following a request for
disbursement of another tranche from the Government of Trinidad
and Tobago in order to meet its operating costs. The Trinidad
Express indicates that the move to give the struggling airline
additional funds was taken during Thursday's special Cabinet
meeting at Whitehall.

In an immediate response, BWIA's spokesperson Clint Williams said
the Company was "very grateful for the assistance. It is
certainly timely and we will continue our negotiations with the
unions representatives to seek concessions to reduce our
operating costs through our ongoing viability."

BWIA has been promised $116.8 million by the government providing
it reduces its operating costs.

CONTACT:  British West Indies Airways
          Phone: + 868 627 2942
          E-mail: mailto:mail@bwee.com
          Home Page: http://www.bwee.com/


CARONI: Guilty of Industrial Relations Offense, Rules Court
-----------------------------------------------------------
The Industrial Court of Trinidad and Tobago ruled the state sugar
company Caroni (1975) Ltd. was guilty of an Industrial Relations
Offense for failing to negotiate the Voluntary Separation of
Employment Plan (VSEP) with the All Trinidad Sugar and General
Workers Trade Union (ATSGWU). According to a report by the
Trinidad Express, Acting Industrial Court president Gladys Gafoor
said the company's violation of Section 40 of the Industrial
Relations Act breached an obligation to act in good faith.

Attorneys Douglas Mendes, Dave Cowie and Ashwani Mahabir
represented Caroni. Attorneys Allan Alexander SC, Reginald Armour
and Kerwyn Garcia appeared for the union. The Company is ordered
to meet with the union and negotiate the terms and conditions of
the VSEP.

Caroni Human resources manager Deosaran Jagroo commented, "There
is a lot of work to be done to try and arrive at an agreement."

Both parties are required to report to the Court the developments
of their negotiations on July 10.

ATSGWTU president Rudy Indarsingh said that they feel "very
vindicated" by the ruling, describing it as a "landmark decision"
for workers and the trade union movement.

CONTACT:  Caroni Limited
          Old Southern Main Road, Caroni,
          Trinidad & Tobago
          Phone: (868) 663-1781 or 662-0879
          Fax: (868) 663-1404

          All Trinidad Sugar and General Workers' Trade Union
          Rienzi Complex
          Exchange Village
          Southern Main Road, Couva.
          President: Mr. Boysie Moore-Jones
          General Secretary: Mr. Rudranath Indarsingh
          Tel. 868-636-2354
          Fax. 868-636-3372
          E-mail: atsgwtu@opus.co.tt


CARONI: Union Heads Urge Government To Heed Court Ruling
--------------------------------------------------------
Officials of two major unions representing workers of Caroni
(1975) Ltd. are pressuring the government to comply with the
directions of the Industrial Court to negotiate the Voluntary
Separation of Employment Plan. The officials were responding to
Agriculture Minister John Rahael's comments earlier saying that
government is prepared to fire Caroni workers if negotiations
with the unions failed.

Rudranath Indarsingh, president of the All Trinidad Sugar and
General Workers' Trade Union said, "Any minister of a responsible
government must be able to respond to the ruling of any court in
Trinidad and Tobago. The Industrial Court is an arm of the
Judiciary of this country and certainly the pronouncements of the
Minister seems to be indicative of the PNM's policy of a
dictatorship emerging in this country, where they have no respect
for the rights of workers and that of trade unions," adding,
"Minister Rahael must tell the Industrial Court that he does not
respect their ruling."

Trinidad Islandwide Cane Farmers' Association president Raffique
Shah expressed hopes that the government would negotiate with the
trade union and not make workers' jobs redundant.

"The Government must move quickly and direct the Caroni board to
negotiate because the remaining workers are looking for an
enhanced package," he said.



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

PDVSA: Must Define Privitization Contract Structure By Year-End
---------------------------------------------------------------
Jose Antonio Perez, the president of the Anzoategui chapter of
Venezuela's oil chamber, asked state oil company PDVSA to define
a contract scheme for private participation in existing and new
oil and gas fields by the end of the year, relates Business News
Americas.

"There is no clear policy about which fields would be tendered,
but it should be defined by the end of the year," he said.

"There is a tendency to seek support from specialized companies
to maintain and operate fields because PDVSA, as it is structured
right now, does not have the capacity to absorb the operation of
new fields," added Mr. Perez.

Mr. Perez indicated that PDVSA does not have the personnel to
maintain production without private participation because half
the workforce was sacked during and after the two-month strike
that started in December 2002.

PDVSA is also seeking private participation in new exploration
blocks, particularly on the Deltana natural gas platform.


SIDOR: Sivensa Takes Part in Restructuring
------------------------------------------
Venezuelan steelmaker Sivensa reduced its stake in Amazonia, a
consortium that controls the country's largest steel producer
Sidor, from 13% to 3.4%. The move, according to Business News
Americas, follows Sidor's recently announced financial
restructuring. Under the terms of the restructuring, Amazonia
will cut its stake in Sidor from 70% to 59.7%, with Venezuela's
state-owned CVG holding the balance. As a result, Sivensa's share
in Sidor falls from 9.1% to 2%.

Under the agreement hammered out with banks and the Venezuelan
government, Amazonia will inject US$133.5 million into Sidor,
paving a way for the latter to lessen its debt load of US$1.88
billion to just US$791 million.

Sivensa was unable to contribute more funds to Sidor as part of
the restructuring because it recently completed the rescheduling
of its own debts, a Sivensa source revealed.

The Amazonia consortium is made up of Latin American steel
companies Sivensa (Venezuela), Siderar (Argentina), Usiminas
(Brazil), Tamsa and Hylsamex (both Mexico), and acquired the 70%
from the state in 1997 for US$2.3 billion.

CONTACT:  SIDERURGICA DEL ORINOCO, C.A. (SIDOR)
          Edificio General, Piso 9
          Avda. La Estancia
          Chuao, Caracas 1060
          Venezuela
          Tel: (582) 902 3800/3917/3955
          Fax: (582) 993 2930
          Home Page: www.sidor.com.ve/



               ***********


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.

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