TCRLA_Public/030814.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

          Thursday, August 14, 2003, Vol. 4, Issue 160

                          Headlines

A R G E N T I N A

ACINDAR: Advances In Debt Restructuring Proceedings
AGROPECUARIA: Under Bankruptcy On Creditor's Request
AVACA: Seeks Court's OK To Start Reorganization
BANCO FRANCES: Announces Results for the 2Q03
CASA FONTANAZZI: Court Grants Creditor Request For Bankruptcy

CONEXION: Nonpayment of Debt Results in Bankruptcy
CONSTRUCCIONES CIVILES: Court Sets Deadline For Credit Check
DIM: Receiver Verifying Claims For Bankruptcy Process
EMAX: Credit Verification Process Starts
FOCAR POOL: Starts Reorganization Process

INFORMATION: Bankruptcy Proceeds With Credit Verification
INSTALACIONES: Court Orders Bankruptcy
INTENCION: Court Orders Bankruptcy
INTERNATIONAL TRADE: Voluntarily Seeking Reorganization
LOMA NEGRA: Creditor Banks Have Until Aug. 12 To Accept Offer

MAGNETIC DREAMS: Enters Bankruptcy on Court's Order
MERCADO INTERNACIONAL: Enters Bankruptcy
MICROCORRUGADO: Court Designates Receiver
MMP INTERNACIONAL: Bankruptcy Proceeds With Credit Verification
NOVILLO: Court Orders Liquidation

RAUL GARCIA: Files "Concurso Preventivo" Motion
RODEL: Court Moves Deadline For Credit Verification
ROSARIO PRODUCTOS: Receiver Starts Claims Verifications
SANCAYET: To Undergo Bankruptcy Process
SASETA HERMANOS: Assets To Be Liquidated After Bankruptcy Ruling

V Y F: Court Assigns Receiver For Bankruptcy Process


B R A Z I L

CEMAR: Aneel Turns Cold Shoulder On GP's Takeover Bid
CESP: Returns To Profitability After Local Currency Appreciation
CMS ENERGY: To Sell Ownership in CPEE By Year-End
CMS ENERGY: Announces Second Quarter Net Loss of $45M
EMBRATEL: To Expedite Local Service Business

SABESP: Condemns Creation Of Commission


C H I L E

TELEFONICA CTC: Seeks To Gain Foothold In WILL Market


C O L O M B I A

EMCALI: Administrator Aims To Reduce This Year's Deficit
EMCALI: To Sign MofU With Govt. Sep. 1 To Participate In Fund


C O S T A   R I C A

ICE: To Deploy Next-Generation Optical Systems From Lucent


E C U A D O R

PETROECUADOR: 17 Firms Pre-qualify For Insurance Contracts


J A M A I C A

AIR JAMAICA: Disgruntled Ex-Worker Sues Airline
C&WJ: CAC To Look Into Customers' Complaints


M E X I C O

ISPAT MEXICANA: Announces End Of Strike At Cardenas Plant


P E R U

VOLCAN: Glencore Official Confirms Acquisition Talks

     -  -  -  -  -  -  -  -

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

ACINDAR: Advances In Debt Restructuring Proceedings
---------------------------------------------------
Argentine long steelmaker Acindar is making progress on its debt
restructuring proceedings, reports Business News Americas.

The steelmaker, which defaulted on its debt in November 2001,
said that it has received notes of satisfaction from its
creditors with respect to the progress of negotiations.

"Banks have expressed that the proposal for the company's
restructuring is in the position to be brought to their
respective credit committees for approval, which if such approval
is obtained, would allow the preparation, negotiation and
execution of the definitive documentation to proceed," Acindar
said in is first half statement.

The agreement foresees repaying the debt of some US$220 million
over nine years with 18 semi-annual installments at a rate of 4%
a year until 2004, then Libor plus 2% for 2005, Libor plus 2.5%
for 2006 and then Libor plus 3% from 2007, Acindar officials said
previously.

Meanwhile, Fernando Torres, an analyst from Fitch Ratings, said
that Acindar has no deadline to complete the restructuring of its
debt.

"The steelmaker's debt restructuring is made under a new
Argentine law called Acuerdo Preventivo Extrajudicial [a form of
out of court settlement] for which there is no precedent," the
analyst said.

Buenos Aires-based Acindar, controlled by Brazilian steelmaker
Belgo-Mineira and Argentina's Acevedo family, produces some
1.2Mt/y of long steel products.

CONTACT:  ACINDAR S.A.
          Jose I. Giraudo, Investor Relations Manager
          Phone: (5411) 4719 8674
          Andrea Dala, Investor Relations Officer
          Phone: (5411) 4719 8672


AGROPECUARIA: Under Bankruptcy On Creditor's Request
----------------------------------------------------
Agropecuaria Holambra S.R.L. was declared bankrupt by insolvency
judge Dr. Garibotto of Buenos Aires' Court No. 2. The ruling came
after Rainaldo Campbell sought for the Company's bankruptcy for
failure to pay its $48,367 in debt.

The bankruptcy proceeds with the credit verification process,
which ends on October 7, 2003. Creditors must submit their proofs
of claim to the receiver, Mr. Jorge Gomez.

CONTACT:  Agropecuaria Holambra S.R.L.
          5th Floor A
          Ave. Cordoba 1304
          Buenos Aires

          Jorge Gomez
          5th Floor
          Tte. Gral. Juan D. Peron 1558
          Buenos Aires


AVACA: Seeks Court's OK To Start Reorganization
-----------------------------------------------
Avaca S.A., which is domiciled in Buenos Aires, is asking the
city's Court No. 4 for permission to start its reorganization
process. Local news source Infobae indicates that the Company has
voluntarily submitted its motion for "Concurso Preventivo" to the
Court.

CONTACT:  Avaca S.A.
          Ave. Gaona 1295
          Buenos Aires


BANCO FRANCES: Announces Results for the 2Q03
---------------------------------------------
BBVA Banco Frances SA, the holding company for Argentina's
fourth-biggest bank, said Monday it had a loss of ARS7.2 million
(US$2.5 million) in the second quarter, compared with a ARS324.7-
million loss in the same period a year earlier, according to Dow
Jones Business News.

The Company, in a press statement announcing the results, said
the loss was "mainly explained by a drop in Net financial
income."

Banco Frances reported net financial loss of ARS48.8 million,
compared with a 206.0 million net income in the year earlier
period.

Meanwhile, deposits as of June 30, 2003 were ARS7.58 billion - a
slight improvement on three months earlier, but below the ARS8.01
billion level of June 30, 2002, the report reveals.

Banco Frances attributed this fall mainly to legal rulings
against last year's government decision to convert dollar
deposits into devalued pesos. Courts have ordered banks to return
the original dollar value of a deposit to tens of thousands of
savers over the past 18 months. At the end of the quarter Banco
Frances said it had 7.8% market share in total deposits.

The bank's total assets as of June 30 stood at ARS14.9 billion,
compared to ARS16.5 billion a year earlier. More worrying, the
bank's holding of government bonds rose to ARS1.13 billion at the
end of the second quarter, compared with ARS284.8 million a year
earlier.

Despite that, Banco Frances is seen as one of the few private,
foreign banks to have come through last year's financial crisis
in reasonable shape. There is a remote possibility the bank could
break even this year but it is more likely that losses will
continue into next year, since lending recovery has been very
slow, said Fitch Rating Argentina's banking analyst Ana Gavuzzo.

BBVA Banco Frances is one of Argentina's three largest private
banks and forms part of Spanish financial group BBVA's Latin
American franchise.

CONTACT:  BBVA Banco Frances SA
          199 Reconquista
          Buenos Aires
          Argentina 1003
          Phone: +54 11 4346 4000
          Home Page: http://www.frances.com.ar
          Contacts:
          Jaime Guardiola Romajaro, Chairman


CASA FONTANAZZI: Court Grants Creditor Request For Bankruptcy
-------------------------------------------------------------
Casa Fontanazzi S.A. was declared bankrupt by Dr. Gutierrez
Cabello, insolvency judge of Buenos Aires Court No. 7, upon a
request from Paulo Yahbes. The Company reportedly failed to meet
its obligations on some US$42,700 it owes to Miss Yahbes.

Creditors are required to submit their claims for verification to
Mr. Manuel Cibeira, the court-designated receiver.

CONTACT:  Casa Fontanazzi S.A.
          6th Floor B
          Tucuman 255
          Buenos Aires

          Manuel Cibeira
          5th Floor
          Ave. C˘rdoba 1247


CONEXION: Nonpayment of Debt Results in Bankruptcy
--------------------------------------------------
Failure to pay $4871,12 of debt to Transporte Cruz del Sur SA
resulted in the bankruptcy of Argentine courier Conexion
Logistica Empresarial SRL. Transporte Cruz' request for the
Company's bankruptcy was approved by Court No. 2 of Buenos Aires.

The Court assigned Ms. Mirta Addario as receiver for the process.
The credit verification process will end on October 14, after
which the receiver will prepare the individual reports.

Dr. Garibotto is the insolvency judge handling the case. The
city's Clerk No. 4, Dr. Romeo, assists the court.

CONTACT:  Mirta Addario
          10th Floor H
          Moreno 442


CONSTRUCCIONES CIVILES: Court Sets Deadline For Credit Check
------------------------------------------------------------
The credit verification period for the bankruptcy process
Construcciones Civiles y Servicios Wen S.A. is undergoing will
end on September 23, according to Argentine news portal Infobae.
Creditors must submit their claims to the receiver, Ms. Adriana
Raquel Esnaola, before the deadline.

Court No. 1 of Buenos Aires decided that the Company is bankrupt
and announced that it is "Quiebra Decretada". The City's Clerk
No. 2 aids the court on the case.

CONTACT:  Adriana Raquel Esnaola
          Juncal 615
          Buenos Aires


DIM: Receiver Verifying Claims For Bankruptcy Process
-----------------------------------------------------
Ms. Eva Mabel Bogado, the court-designated receiver for Buenos
Aires-based company Dim S.A., is verifying creditors' claims
until September 25, 2003. After the verification process, the
receiver will proceed with preparations for the individual
reports.

The City's Court No. 17, which announced the Company's
bankruptcy, expects the receiver to hand in the individual
reports on November 6. Infobae relates that the general report
should be filed on December 19. However, the report did not
mention whether the Court has set the date for an informative
assembly.

CONTACT:  Eva Mabel Bogado
          Paraguay 1465
          Buenos Aires


EMAX: Credit Verification Process Starts
----------------------------------------
Creditors of Emax Compania Argentina de Seguros Generales S.A.,
the Company, which is undergoing the bankruptcy process, are
advised to submit their claims for verification to the receiver,
Ms. Marcela Beatriz Bianchi. The credit verification process will
end on October 22, according to Argentine news source Infobae.

Court No. 20 of Buenos Aires, which handles the Company's case
with assistance from Clerk No. 39, requires the receiver to
submit the individual reports by December 3 this year. The
general report will be filed on February 16 next year.

CONTACT:  Emax Compa¤ˇa Argentina de Seguros Generales S.A.
          Piedras 784
          Buenos Aires

          Marcela Beatriz Bianchi
          Bermudez 99
          Buenos Aires


FOCAR POOL: Starts Reorganization Process
-----------------------------------------
Focar Pool S.R.L. begins its reorganization process after the
Civil and Commercial Tribunal of San Isidro approved the
Company's motion for "Concurso Preventivo". The Company's case is
currently under the jurisdiction of the province's Court No. 2,
relates Infobae.

The receiver, Mr. Antonio Florencio Canada, will verify credit
claims until September 3 this year. After that, he will prepare
the individual reports, which must be submitted to the court by
October 16. The court expects the general report to be turned in
on November 27. Boletin Oficial indicates that the informative
assembly will be on June 3 next year.

CONTACT:  Focar Pool S.R.L.
          Bernabe Marquez 855
          San Isidro


INFORMATION: Bankruptcy Proceeds With Credit Verification
---------------------------------------------------------
The bankruptcy of Buenos Aires-based company Information S.A.
proceeds with the verification of credit claims. The Company's
creditor must submit their claims for verification to the
receiver, Mr. Jorge Vilarino before October 7, 2003.

The Company, whose assets will be liquidated, was announced
"Quiebra Decretada" by the city's Court No. 24 recently. Buenos
Aires Clerk No. 47 assists the court, relates Argentine news
portal Infobae.

CONTACT:  Information S.A.
          Maipu 812
          Buenos Aires

          Jorge Vilarino
          Fonrouge 1246
          Buenos Aires


INSTALACIONES: Court Orders Bankruptcy
--------------------------------------
Instalaciones Especiales S.R.L., which is domiciled at Argentine
province Salta, has entered bankruptcy. The Company's assets will
be liquidated after the province's Court No. 1 ruled that the
Company should be "Quiebra Descretada".

The receiver, Maizzel Arrate y Asociados, will file the
individual reports on August 21 this year, according to local
news source Infobae. Individual reports are prepared after the
verification of creditors' claims to determine the nature,
existence and amount of each debt.

CONTACT:  Instalaciones Especiales S.R.L.
          Pable Aleman 2873
          Salta

          Maizel Arrate y Asociados
          Los Mandarines 384
          Salta


INTENCION: Court Orders Bankruptcy
----------------------------------
Intencion S.A., which is domiciled in Buenos Aires, was declared
bankrupt by the city's Court No. 1, reports local news source
Infobae. Clerk No. 1 assists the court on the case.

The designated receiver is Mr. Ruben Hugo Faure, a local
accountant. Creditors are required to submit their claims for
verification before September 26, 2003.

CONTACT:  Ruben Hugo Faure
          Ave. Rivadavia 1227
          Buenos Aires


INTERNATIONAL TRADE: Voluntarily Seeking Reorganization
-------------------------------------------------------
International Trade & Investment S.A., which is based in Buenos
Aires, has submitted a motion for "Concurso Preventivo" to the
city's Court No. 4. The Company will start its reorganization
process upon the court's approval of the filed petition.

Infobae reports that the city's Clerk No. 7 assists the court on
the case.

CONTACT:  International Trade & Investment S.A.
          Paraguay 419
          Buenos Aires


LOMA NEGRA: Creditor Banks Have Until Aug. 12 To Accept Offer
-------------------------------------------------------------
Argentine cement company Loma Negra, which is owned by the
country's richest woman, Amalia Lacroze de Fortabat, extended
until Tuesday an offer to its creditor banks to accept a proposed
restructuring of some US$400 million in debt.

The proposal involves an up-to-US$70 million initial cash payment
destined to repurchase part of the debt and the issue of new
bonds for up to US$250 million, which will settle part of the
owing capital with a certain write-off that will be fixed after a
tender process.

Since the banks control the majority of Loma Negra's debt and
thereby dominate the creditors committee charged with negotiating
its restructuring, resolution of the bank-debt restructuring is
being treated as a prerequisite for the successful renegotiation
of some US$100 million in outstanding bonds.

The Company, which defaulted on an estimated US$430-million in
debt last year, has been negotiating the restructuring of its
debt since September 2002 with Morgan Stanley as financial
advisor.


MAGNETIC DREAMS: Enters Bankruptcy on Court's Order
---------------------------------------------------
Court No. 22 of Buenos Aires rules that Magnetic Dreams S.A.,
which is based in the city, is "Quiebra Decretada". Local news
portal Infobae relates that the court assigned Mr. Federico
Mansbach as receiver for the process.

The credit verification process has started. The Company's
creditors must submit their claims to the receiver before August
15. The receiver will prepare the individual reports following
the completion of the credit verification.

CONTACT:  Magnetic Dreams
          Sulpacha 268
          Buenos Aires

          Federico Mansbach
          Tucuman 1506
          Buenos Aires


MERCADO INTERNACIONAL: Enters Bankruptcy
----------------------------------------
The insolvency judge of the Civil and Commercial Court of La
Rioja decided that local company Mercado Internacional is
bankrupt. Information from Infobae reveals that the court has
decreed the Company to be "Quiebra Decretada".

The Company's creditors are required to submit their claims for
verification to the court-designated receiver. Following the
credit verification process, the receiver will file the
individual reports, followed by the general report. However, the
report did not mention whether the Court has assigned a receiver
to the case or set the deadlines for the customary reports.


MICROCORRUGADO: Court Designates Receiver
-----------------------------------------
Buenos Aires Court No. 15 assigned Mr. Luis Abranzon as receiver
for the bankruptcy of Microcurrugado Guardiani S.R.L., relates
local source Infobae. Creditors must submit their claims to the
receiver before the credit verification period ends on October 9.

Infobae relates that the Court decided that the Company should be
"Quiebra Decratada". Clerk No. 29 assists the Court on the case.

CONTACT:  Microcorrugado Guardiani S.R.L.
          Tucuman 834
          Buenos Aires

          Luis Abranzon
          Pringles 835

          Buenos Aires


MMP INTERNACIONAL: Bankruptcy Proceeds With Credit Verification
---------------------------------------------------------------
The bankruptcy process, which Buenos Aires-based company M.M.P.
Internacional S.A. is undergoing, proceeds with the credit
verification process. Creditors must submit their claims to the
receiver, Ms. Maria del Carmen Amandule for verification before
September 8 this year.

The city's Court No. 5, which declared the Company's bankruptcy,
requires the receiver to submit the individual reports on October
20. The general report, on the other hand, must be submitted
before December 1, according to information from Infobae.

CONTACT: Maria del Carmen Amandule
         24 de Noviembre 1226
         Buenos Aires


NOVILLO: Court Orders Liquidation
---------------------------------
The Civil and Commercial Tribunal of Salta ordered the
liquidation of the assets of local company Novillo S.A., after it
was declared bankrupt. Mr. Ricardo Carlos Sarmiento is the
designated receiver for the case.

The court requires the receiver to file the individual reports by
August 14, while the general report is due on September 26,
according to Infobae. However, the report did not mention whether
the court has set a date for an informative assembly.

CONTACT:  Ricadro Carlos Sarmiento
          Las Palmeras 331
          Salta


RAUL GARCIA: Files "Concurso Preventivo" Motion
-----------------------------------------------
Buenos Aires-based company Raul Garcia S.A. filed a motion for
"Concurso Preventivo", voluntarily seeking the court's permission
to start reorganization. A report from Infobae reveals that the
city's Court No. 24, assisted by Clerk No. 48, handles the
Company's case.

If the motion is approved, the Company may then under
reorganization. The court will have to assign a receiver to
verify creditors' claims and prepare the necessary reports.

CONTACT:  Raul Garcia S.A.
          Ave. Cruz 6503
          Buenos Aires


RODEL: Court Moves Deadline For Credit Verification
---------------------------------------------------
The Civil and Commercial Tribunal of Cordoba moved the deadline
for credit verification concerning the reorganization of local
company Rodel SA. A report by Argentine news source Infobae
indicates that creditors now have until November 25 to have their
claims verified.

However, the report did not mention whether the court has
assigned a receiver to the case nor the deadline for the
individual reports. The deadline for the general report was
indicated as December 26 this year. An informative assembly will
be held on June 7, 2004.


ROSARIO PRODUCTOS: Receiver Starts Claims Verifications
-------------------------------------------------------
Creditors of Buenos Aires-based Rosario Productos Quimicos S.R.L.
are required to submit their claims to the receiver, Ms. Noemi
Zulema Vivares. Infobae relates that the claims verification
process will end on September 22, this year.

Buenos Aires Court No. 1 ruled that the Company is "Quiebra
Decretada". The city's Clerk No. 1 assists the court on the case.

CONTACT:  Noemi Zulema Vivares
          Ave. Corrientes 2626
          Buenos Aires


SANCAYET: To Undergo Bankruptcy Process
---------------------------------------
Sancayet S.A. will undergo the bankruptcy process after Court No.
24 of Buenos Aires declared it "Queibra Decretada". Infobae
indicates that the city's Clerk No. 47 aids the court on the
case.

The designated receiver, Mr. Ernesto Borzone, will verify
creditors' claims until October 8 this year. The report did not
indicate whether the court has set the deadlines for the
individual and general reports.

CONTACT:  Sancayet S.A.
          Ave. Directorio 4709
          Buenos Aires

          Ernesto Borzone
          Cuenca 1464
          Buenos Aires


SASETA HERMANOS: Assets To Be Liquidated After Bankruptcy Ruling
----------------------------------------------------------------
Assets of Catamarca-based Saseta Hermanos S.R.L. will be
liquidated following a ruling from the province's Court No. 1,
which placed the Company under bankruptcy. Argentine news source
Infobae reveals that the Civil and Commercial Tribunal of
Catamarca decided that the Company is "Quiebra Decretada".

The assigned receiver for the case is Mr. Hugo Rolando Pintos, an
accountant from San Fernando del Valle. The individual reports,
which are prepared after the verification of credit claims, is
due for filing on September 24 this year. The general report must
be filed by November 5.

CONTACT:  Saseta Hermanos S.R.L.
          No. 930
          Ave. Virgen del Valle
          San Fernando del Valle
          Catamarca

          Hugo Rolando Pintos
          Eusebio Ruzo sin numero
          San Fernando del Valle
          Catamarca


V Y F: Court Assigns Receiver For Bankruptcy Process
----------------------------------------------------
Court No. 22 of Buenos Aires designated Mr. Juan Enrique
Reinhardt as receiver for the bankruptcy process of local
company, V y F S.R.L., reports local news source Infobae.
Creditors have until September 9 this year to have their claims
verified.

Infobae relates that the court requires the individual reports to
be submitted by November 11 and the general report by December
23.

CONTACT:  Juan Enrique Reinhardt
          Viamonte 1348
          Buenos Aires



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

CEMAR: Aneel Turns Cold Shoulder On GP's Takeover Bid
-----------------------------------------------------
The bid by Brazilian private equity fund GP Investimentos to take
control of Maranhao state distributor Cemar was ditched by the
country's power regulator Aneel.

Citing a statement released by the regulator, Business News
Americas relates that GP failed to strike an agreement with
Cemar's major creditors - Eletrobras and Eletronorte. Cemar has
debts of around BRL806 million (US$264 million), over BRL350
million of which is owed to Eletrobras and Eletronorte.

Late Tuesday, Aneel director general Jose Mario Abdo and mines
and energy minister Dilma Rousseff held a press conference to
present the future plans for Cemar, Business News Americas
reports. One of the most immediate concerns will be to extend
Aneel's intervention in Cemar, which was first authorized on
August 21, 2002, renewed earlier this year and expires next week.

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


CESP: Returns To Profitability After Local Currency Appreciation
----------------------------------------------------------------
The appreciation of the Brazilian real in the second quarter of
the year helped Sao Paulo's state-owned generator Cesp to steer
itself back to profitability during the period.

According to a Business News Americas report, Cesp reported net
profits of BRL794 million (today US$261mn) for the second quarter
of the year, compared to a loss of BRL1.52 billion in the same
year-ago quarter.

Cesp said the real gained 14.3% against the US dollar in the
second quarter of the current year, reducing the overall burden
of its foreign denominated debt.

Foreign debt as a percentage of total debt fell to 71% at the end
of June from 84% at the beginning of the quarter, Cesp said.

The Company's net revenues during the quarter fell 24% to BRL470
million, from that of 2Q02, as power production fell 21.5% due to
the expiry of 25% of Cesp's initial contracts.

Cesp posted an operating profit of BRL1.2 billion, compared to an
operating loss of BRL1.54 billion in the 2Q02, the Company said.

Cesp is preparing new issues of debentures and energy
certificates (CTEEs).

The report also reveals that the Company's creditors are due to
meet on August 14 to vote on a proposal to reschedule US$520
million worth of bonds.

CONTACT:    Companhia Energetica De Sao Paulo (CESP)
            Rua da ConsolaO o, 1.875
            CEP 01301 -100 S o Paulo, Brazil
            Phone: +55-11-234-6322
            Fax: +55-11-287-0871
            Home Page: http://www.CESP.com.br/
            Contact:
            Mauro G. Jardim Arce, Chairman
            Ruy M. Altenfelder Silva, Vice Chairman
            Vicente Kazuhiro Okazaki, Finance Director


CMS ENERGY: To Sell Ownership in CPEE By Year-End
-------------------------------------------------
CMS Energy plans to sell its interest in Brazilian power
distribution holding CPEE by the end of the year, Business News
Americas reports, citing COO David Joos.

CMS owns a 93.9% stake in the CPEE Group through subsidiary CMS
Electric and Gas. The group consists of distributors Jaguari de
Energia, Sul Paulista de Energia, Luz e Forca de Mococa and
Equipame, whose concessions are primarily in Sao Paulo state.

The planned sale comes as CMS continues to divest its Latin
American operations as part of its US$900 million international
asset divestment program for 2003, in order to focus on North
American assets.

The Company, according to spokesperson Jeff Hollyfield, plans to
divest all of its Latin American assets in the long term, but it
won't be a fire sale.

"CMS Energy is going to be patient and when it makes financial
sense to do an asset sale, it will be done, but if it doesn't
make financial sense then we won't do it," Hollyfield said.


CMS ENERGY: Announces Second Quarter Net Loss of $45M
-----------------------------------------------------
CMS Energy (NYSE: CMS - News) announced a reported net loss of
$45 million, or $0.31 per share, for the second quarter of 2003,
an improvement over the same quarter of 2002, when it reported a
net loss of $74 million, or $0.55 per share. Charges linked to
the sale of the CMS Panhandle Companies made up the bulk of the
reported quarterly loss.

Ongoing (non-Generally Accepted Accounting Principles) net income
for the second quarter was $1 million, or $0.01 per share,
compared to ongoing net income of $17 million or $0.13 per share
in the same period of 2002. Ongoing earnings provide a key
measure of the Company's present operating financial performance,
unaffected by discontinued operations, asset sales, accounting
changes or other items detailed in the attached summary financial
statements.

Compared to last year, the 2003 second quarter ongoing results
reflect benefits from favorable movement in foreign exchange
rates and higher non-regulated business earnings, which were more
than offset by higher financing costs and reduced electric sales
at CMS Energy's principal subsidiary, Consumers Energy.
Temperatures for the spring and early summer averaged about 2
degrees lower than the similar period last year and as a result
electric sales were down 4 percent. The higher financing costs
reflect the $925 million in bridge financing that CMS Energy
completed in April.

For the first six months of 2003, CMS Energy reported net income
of $34 million, or $0.24 per share, up from a loss of $32
million, or $0.24 per share, for the first half of 2002. Ongoing
income was $79 million, or $0.55 per share, compared to $96
million, or $0.72 per share, for the same period in 2002.

Despite the continuing impact of cooler weather, the Company
reaffirmed its full-year earnings guidance of $0.80 to $0.90 per
share on an ongoing basis, citing continued aggressive cost
management. The Company adjusted its guidance for full-year
reported earnings from roughly break even to a loss of about $1
per share, principally because of changes in the timing of asset
sales, the expected proceeds from those sales, pension expenses
linked to the CMS Panhandle Companies sale, and increased
financing costs.

CMS Energy continues to make progress on its financial plan,
reaching milestones during the second quarter and early July that
include:

     * Closing more than $2 billion in asset sales

         -- CMS Panhandle for $1.8 billion, including $1.2
            billion in assumed debt
         -- CMS Field Services for $113 million and a $50 million
            contingent note
         -- CMS's Guardian pipeline interest for $26 million
         -- Atacama transmission lines for $38 million

     * Completing $2.25 billion in financings at CMS Energy and
       Consumers Energy to extend maturities and reduce interest
       costs

         -- At CMS Energy
             * $925 million in bridge bank financing
             * $300 million of 7.75 percent, seven-year senior
               debt
             * $150 million of 3.375 percent convertible debt

         -- At Consumers Energy

             * $875 million in first mortgage bonds with five- to
               10-year maturities and interest rates of 4 percent
               to 5.375 percent

     * Consumers Energy ranked second nationally in customer
       satisfaction for combined electric and gas utilities in
       an annual survey by the American Customer Satisfaction
       Index.

Ken Whipple, CMS Energy's chairman and chief executive officer,
said the latest financial statements show the Company is
continuing to make progress in executing its back-to-basics
strategy.

"We've got a solid business plan and it continues to show
results. We're doing what we said we were going to do: increase
our financial flexibility and liquidity and implement our back-
to-basics strategy," Whipple said. "Our $2.25 billion in recent
financings are an important part of our financial plan. They
allowed us to extend maturities and capitalize on some low-
interest rate opportunities. There are still many challenges
ahead, but we continue to make progress toward our goal of
becoming a smaller, stronger company."

CMS Energy is an integrated energy company, which has as its
primary business operations an electric and natural gas utility,
natural gas pipeline systems, and independent power generation.

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


EMBRATEL: To Expedite Local Service Business
--------------------------------------------
Embratel announced Tuesday the signature of a letter of intent
for the acquisition of V‚sper Sao Paulo S.A. and V‚sper S.A.,
local service competitor companies of the following regions of
Brazil: Sao Paulo (Region III) and North & Northeast (Region I).
V‚sper provides its local services to 17 states covering 76% of
the population. This acquisition will enable Embratel to enhance
the scope of its local voice service business, including the
competitive offer of broadband access through EV-DO technology to
small-sized businesses, small offices and residential customers.
In 2002 V‚sper's revenue came to R$388 million.

The joint performance of Embratel and the two local mirror
companies plays a part in the preservation of the competitive
model in Brazil. The acquisition of V‚sper by Embratel emphasizes
its commitment toward being the leading telecommunications
company in Brazil with a complete array of services. Residential
and corporate customers and broadband Internet users will be
offered a solid alternative vis-…-vis the monopolistic local
service carriers.

The conclusion of such acquisition will be contingent upon final
agreements, previous conditions and the necessary governmental
authorizations.

Acquisition details

The letter of intent involves the acquisition by Embratel of 100%
of the stocks of both V‚sper companies. The acquisition of V‚sper
will involve no bank debt or disbursement by Embratel. Qualcomm
and V‚sper will enter into an agreement for the sale followed by
a sale/leaseback agreement covering the transmission towers, with
the purpose of raising funds for the Company. These funds will be
used to pay off the entire actual bank debt and to finance any
short-term requirement. Additional fund requirements of V‚sper in
2003 will be provided by the synergy obtained with Embratel's
joint operation and by the actual cash resources.

Embratel will build up its competitive edge

With the acquisition of V‚sper, Embratel will be able to expedite
its business plan for local service and implement its broadband
internet access competing with ADSL. Embratel will be in a
position to economically enhance its local service scope by
providing individual lines to small businesses and residential
customers, adding these segments to the service currently
provided to big-sized companies requiring multiple lines. V‚sper
has around 500,000 residential and small business customers that
use mostly prepaid service plans. V‚sper's revenue came to R$388
million in 2002, 34% of which coming from the provision of local
telephone services using fiber optics technology, offered to
2,800 corporate customers.

Additionally, V‚sper has implemented EV-DO technology in Sao
Paulo, offering broadband internet access. This type of access
can be provided along with the telephone line or on a separate
basis, and is competitive with the existing ADSL technologies,
offering an additional wireless solution edge. Embratel's
solution will serve the residential market and offer broadband
internet access as well.

Today V‚sper is equipped with a network and switching center
infrastructure that are more than adequate to double its customer
base with no additional investment. V‚sper's network evolution
will use CDMA technology.

Synergy with Embratel

The scope and range of Embratel's operations will provide the
necessary scale - fixed costs reduction, call centers, network
and interconnection for long distance calls to V‚sper.
Furthermore, Embratel will enhance its trade name and its
marketing power so as to increase the sale of services currently
offered by V‚sper. Most of Embratel's 20 million customers will
have a choice with respect to their local services.

Embratel is of the opinion that the synergy obtained with the
joint operation of the two companies will enable V‚sper to
generate a positive EBITDA in 2004.

Embratel is being advised by UBS Warburg to carry out this
operation.

About V‚sper:

V‚sper was formed early in 1999, being licensed through an
auction to operate local telephone services in Regions I and III
covering 76% of the Brazilian population. The license also
enables the use of wireless access in the 1,9Ghz frequency valid
until 2019 and extendable for over 20 years. V‚sper has
implemented the CDMA wireless technology in 87 cities, through
which most of its residential and small-sized companies are
served. In addition to offering services to residential and small
business customers, V‚sper uses fiber optics to provide services
to big-sized companies.

About Embratel:

Embratel is the premium telecommunications provider in Brazil,
offering a wide range of advanced telecommunication services over
its state-of-the-art network. The company is national leader in
data and Internet services, in a strategic position to become the
only local carrier providing national corporate coverage.
Embratel provides the following services: advanced voice
telephone, high-speed data, Internet, data communication via
satellite, corporate networks and local corporate services.
Embratel is in a privileged position to become the South American
carrier with an all-distance network. Embratel network has
national coverage with almost 17,500 miles of optic cables,
representing around one million miles of fiber optics.

EMBRATEL:  Advertising, Press and Public Relations Department
           Tel: (02121) 2121 7837 / 2121 6291
           Fax: (02121) 2121 7791
           Mid-West- Phone: (02161) 242-9058 / 2845 / 916-9188
           Attention: Fl vio Resende
                      E-mail: cmsocial@embratel.net.br
                      URL: www.embratel.com.br


SABESP: Condemns Creation Of Commission
---------------------------------------
The decision by the Sao Paulo's city council to create a
commission to look into state water utility Sabesp's behavior
angered the latter, says Business News Americas.

Sabesp President Dalmo Nogueira criticized the move saying, in
addition to not having legal or factual proof, the allegations
that prompted the creation of a commission are "completely
inappropriate" and demonstrate ignorance regarding Sabesp's work
in Sao Paulo city, or the other 365 municipalities it serves
throughout the state

The city council created the commission following allegations
that question service quality and investment levels.

Sabesp is Brazil's largest water utility in terms of users,
providing water to 25 million residents and sewerage services to
16.8 million residents. It plans to invest BRL656 million
(US$279mn) this year, while capital expenditure for the 2003-2007
period will reach BRL3.9 billion.

CONTACT:  Helmut Bossert
          Phone: (5511) 3388-38664
          Email: hbossert@sabesp.com.br

          Marisa Guimaraes
          Phone: (5511) 3388-9135
          Email: marisag@sabesp.com.br



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

TELEFONICA CTC: Seeks To Gain Foothold In WILL Market
-----------------------------------------------------
An official from Telefonica CTC Chile SA revealed that the
country's largest telecommunications company is considering
making a bid for a license to enter the wireless local loop, or
WILL, Internet access market, relates Business News Americas.

According to Rodrigo Torres, CTC executive in charge of network
and services, major telecoms and the government industry
regulator Subtel are currently in the initial stages of talks
concerning a new auction.

"We're interested but first we'll have to see whether the basic
requirements will be attractive for CTC", he added.

WILL offers broadband, or high-speed, Internet and telephone
access. The only company which has the WILL license in Chile is
CTC's rival, Entel SA.



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

EMCALI: Administrator Aims To Reduce This Year's Deficit
---------------------------------------------------------
In an effort to reduce Colombia's Cali-based multi-utility
Emcali's deficit by COP640 billion (US$223mn) to COP60 billion
this year, an austerity plan must be achieved. Evamaria Uribe,
the head of Colombia's utilities regulator Supervicios, which has
been running Emcali for more than three years now, revealed the
plan to government news agency CNE, says Business News Americas.
In addition, there must also be an improvement in the contracts
system to be able to cut the deficit to the target amount.


EMCALI: To Sign MofU With Govt. Sep. 1 To Participate In Fund
-------------------------------------------------------------
Creditors of Emcali and the government are due to sign a
memorandum of understanding (MOU) on September 1 to participate
in the so-called Social Capitalization Fund, to which present
creditors and the government would contribute all of their debt
with Emcali, says Business News Americas. The fund, as Emcali's
only creditor, would then restructure the Company's debt. Emcali,
which has debts totaling some US$1 billion, is facing severe
financial problems.



===================
C O S T A   R I C A
===================

ICE: To Deploy Next-Generation Optical Systems From Lucent
----------------------------------------------------------
Lucent Technologies (NYSE: LU) announced Wednesday that Instituto
Costarricense de Electricidad (ICE), the sole telecommunications
provider in Costa Rica, will deploy next-generation optical
solutions from Lucent. The systems will enable ICE to provide
mobile and wireline services using a common transport network,
which increases network capacity, reduces equipment and power
costs, and saves space in the central office environment.

Under the terms of the agreement, Lucent, through its Business
Partner Coasin Costa Rica, will supply ICE with a variety of
optical networking systems to expand its nationwide SDH/WDM
transport network, including the Metropolisr ADM MultiService
Mux, LambdaUniter MultiService Switch (MSS), and the WaveStarr
ADM 16/1. COASIN Costa Rica, a Lucent Business Partner, is
working with ICE and Lucent to supply and implement the Lucent
solution.

Lucent's end-to-end solution will allow ICE to expand its SDH
network and offer new services outside the major metropolitan
areas as it integrates seamlessly into ICE's existing
infrastructure, avoiding the need for an overlay network built
for new services. Mesh restoration capabilities on the
LambdaUniter MSS will also help ICE to migrate to new mesh-based
networks, while leveraging traditional protection architectures.

"We're pleased to be working with ICE and Lucent Technologies to
upgrade and expand this network," said Francisco Di Napoli,
general manager COASIN Costa Rica. "LambdaUniter MSS is the best
of the next generation of optical equipment, and it will keep ICE
on the leading edge of telecommunications solutions. Our
partnership with Lucent enables us to deliver these high-quality,
next-generation solutions to our customers in the region."

"We are pleased to address ICE's growing business needs through
the deployment of Lucent's cutting-edge network transport
equipment, setting the stage for future next-generation optical
infrastructure expansion," said Osvaldo di Campli, Lucent
Technologies' regional sales vice president for Central America
and the Caribbean. "Our products will help ICE significantly
upgrade its backbone transport network in terms of system
capacity, technical advantage, reliability, security as well as
operational flexibility, and our partnership with COASIN ensures
that ICE will receive top quality service and installation."

COASIN Costa Rica led the sales process through the presales
cycle and will manage the implementation and deployment of the
solution. "As our Business Partners program is gaining traction
in Latin America, our partners are helping us gain critical
projects and penetrate new market segments", said Francisco
Berrueta, sales director Lucent BusinessPartners organization
Latin America.

The LambdaUnite MSS brings together switching capacity,
functionality, density and flexibility into one small piece of
equipment and its standards-compliant technology enables
customers to seamlessly integrate with existing backbone and
metro optical networks. Sold for the first time in the Latin
America region, the product provides a bridge between data-
intense metro networks and high-speed optical core networks,
connecting cities, campuses and corporate networks to larger,
long-haul public networks. For more information on LambdaUniter
MSS visit http://www.lucent.com/lambdaunite.Metropolisr ADM
serves as an integrated Ethernet-over-SDH multiplexer, enabling
service providers to migrate from existing time-division
multiplexed (TDM) networks to data-aware packet networks. With a
deployed base of more than 25,000 systems worldwide, the
WaveStarr ADM 16/1 product is Lucent's successful optical
multiplexer for the SDH market, and can be used for interoffice,
access or regional applications.

About ICE
ICE is the sole supplier of telecommunications and energy
services in Costa Rica. It is a state entity that has
distinguished itself in Central America as a leader in the
development and implementation of new technologies. It offers a
wide variety of services in Costa Rica and has several
technological platforms that allow it to diversify the service
options for its customers, both residential and corporate.

About COASIN
Founded in Chile on 1966, COASIN is now a multinational operation
focused on integrating Information Technology solutions for
carriers and corporate customers. Its operations in Costa Rica
started in 1994 and since then it has supplied major transport
networks for the largest corporations and other institutions in
the government, banking and industrial segments in Costa Rica.

About Lucent Technologies
The Lucent Advantage Business Partner program includes resellers,
systems integrators and distributors who deliver Lucent products
to enterprises, ISPs and service providers worldwide. For more
information on the Advantage Business Partner program, visit its
website at http://www.lucent.com/partner/advantage.

Lucent Technologies, headquartered in Murray Hill, N.J., USA,
designs and delivers networks for the world's largest
communications service providers. Backed by Bell Labs research
and development, Lucent relies on its strengths in mobility,
optical, data and voice networking technologies as well as
software and services to develop next-generation networks. The
company's systems, services and software are designed to help
customers quickly deploy and better manage their networks and
create new, revenue-generating services that help businesses and
consumers. For more information on Lucent Technologies, visit its
Web site at http://www.lucent.com.



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

PETROECUADOR: 17 Firms Pre-qualify For Insurance Contracts
----------------------------------------------------------
Twelve companies made it to Petroecuador's pre-qualification list
to bid for the Ecuadorian state oil company's insurance policies
by the August 27 deadline, says Business News Americas.

These are Petroecuador's current main insurer Colonial, as well
as Asegurador del Sur, Atlas, Condor, Coopseguros del Ecuador, El
Fenix, Integral, Interoceanica, La Union, Panamericana del
Ecuador, Seguros Rocafuerte, and Ecuatoriano-Suiza.

Petroecuador plans to pre-qualify at least five more. The
companies still being processed by the Company's insurance unit,
are Olympus, Alianza, Sudamerica, AIG and Sulamerica.

Petroecuador will declare a winner by September 27, which is the
date when the policy must take effect.

The Company is seeking coverage of up to US$500 million.
Petroecuador's assets are now valued at US$3.2 billion.

The Company paid US$28 million in insurance premiums in 2002-
2003, but has increased its budget this year to US$30 million to
provide some cushion if bids come in higher than last year.

The Company will call for bids on 15 other policies in October,
the estimated cost of which is US$1.5 million - 2 million.




=============
J A M A I C A
=============

AIR JAMAICA: Disgruntled Ex-Worker Sues Airline
-----------------------------------------------
Jamaican national airline Air Jamaica is now facing a lawsuit
lodged against it by a former employee, reveals RJRNews.Com.

Miguel Gallimore, who worked for Air Jamaica between April 1997
and March of the current year, filed a suit against the airline
alleging, that the latter breached his contract of employment
when he was dismissed in March.

In addition, Mr. Gallimore is seeking damages in his US$3-million
(200 million Jamaican dollars) suit for what he alleges is the
airline's use of his image in a promotion campaign without his
permission.

According to court documents obtained by RJR News, Mr. Gallimore
is also claiming that he has not been paid commission for
business secured for Air Jamaica, in keeping with his contract.

Meanwhile, Air Jamaica claims no knowledge about the lawsuit,
which was filed in the Dade County Circuit Court.


C&WJ: CAC To Look Into Customers' Complaints
--------------------------------------------
The Consumer Affairs Commission (CAC) said it has received
several complaints from customers of both Digicel, and Cable &
Wireless Jamaica that they are being cheated out of talk time by
the companies, says the Jamaica Observer.

With regards to Digicel, its customers are complaining that they
have not quite benefitted from the savings that Digicel promised
in its recently introduced 'talk-for-ten minutes and pay-for-
three minutes' promotion.

"We have got calls from Digicel customers....we are investigating
whether in fact Digicel customers do save...some saying that it
worked, and also calls that it does not work," says Raymond
Pryce, director of research and communication at the CAC.

With regards to Cable & Wireless Jamaica, the consumer watchdog
agency is also investigating whether C&WJ was unreasonable in its
recent decision to reduce the expiry dates on its new GSM phone
cards.

C&WJ decided to cut the expiration time on its $100 cards from 30
days to 21 days. The $500 cards now expire within 45 days, down
from 60 days.

"We have gotten consumer complaints about C&W expiry dates,"
Pryce said.

"The CAC will make its finding by month-end and is currently
compiling information about both systems."

Digicel and C&W could each be fined a maximum of $5 million if
found to have committed the offences claimed by their consumers.
However, before reaching this stage, the companies would be given
opportunities to rectify the situation.

The telecom operators have been given until August 15 to respond
to the issue.



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

ISPAT MEXICANA: Announces End Of Strike At Cardenas Plant
---------------------------------------------------------
Ispat Mexicana S.A. de C.V., ("Imexsa") the Mexican subsidiary of
Ispat International N.V. (NYSE:IST US; AEX: IST NA), is pleased
to announce that the strike at its Lazaro Cardenas plant has
ended, and that production will resume Tuesday.

Workers of Sindicato Nacional de Trabajadores Mineros,
Metalurgicos y similares de la Republica Mexicana (the National
Mining, Mineral and similar workers Union of Mexico) Section 271,
declared the strike at Imexsa's Lazaro Cardenas plant and at
three other companies on August 1, 2003 at 12:01 AM. The strike
was the result of a disagreement between the Union and one of the
other three companies. The company
in disagreement with the workers' union is not related to Ispat
Mexicana or any other subsidiary of Ispat International N.V.

CONTACT:  ISPAT INTERNATIONAL N.V.
          T. N. Ramaswamy, Director, Finance
          Tel: +44 20 7543 1174

          ISPAT INTERNATIONAL N.V.
          Paul Weigh, Corporate Communications
          Tel: +44 20 7543 1172



=======
P E R U
=======

VOLCAN: Glencore Official Confirms Acquisition Talks
----------------------------------------------------
An official from Glencore International confirmed that the
Switzerland-based company is indeed in talks with Peru's cash-
strapped zinc miner Volcan Compania Minera to buy the latter's
assets, relates Reuters.

But "financial issues" remain, the Glencore official, who asked
to remain anonymous, said, adding that negotiations did not mean
that Volcan had ruled out other suitors.

"Our organization is talking and negotiating with Volcan,"
although it (Volcan) has not ruled out the proposals of other
companies, which are still valid," the official said.

"I understand there are series of financial issues involved in
the operation that until now are not allowing the operation to
conclude," the official said.

Some of Volcan's bank creditors hold shares in the Company as a
guarantee for a part of Volcan's US$240-million debt.

Volcan is looking for a buyer in order to address its financial
woes, which stemmed from the purchase of the mining unit Mahr
Tunel at a privatization sale and later the Paragsha mine,
formerly Cerro de Pasco. These acquisitions from state-owned
Centromin helped Volcan rack up heavy debt.

Earlier, Brazil's Paribuna de Metais, part of Brazil's industrial
conglomerate Votorantim, U.S.-based BHL Resources and tin miner
Minsur have expressed interest in the cash-strapped zinc miner.



               ***********


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 America 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
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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