TCRLA_Public/030910.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

          Wednesday, September 10, 2003, Vol. 4, Issue 179

                          Headlines

A N T I G U A   &   B A R B U D A

LIAT: Integration Plans "Well Advanced," says Chief


A R G E N T I N A

ACINDAR: US$100M of Bonds Rated 'D(arg)' by Local Fitch
CAPEX: Fitch Assigns Default Ratings To Bonds
CAPEX: Fitch Rates US$150M of Bonds 'C(arg)'
DUVI: Submits "Concurso Preventivo" Motion
EDENOR: Fitch Hands Down Default Ratings on Bonds

EDITORIAL PERFIL: Fitch Rates Bonds `D(arg)'
INDUSTRIAS METALURGICAS: Fitch Moves Bonds to Junk Territory
INDUSTRIAS METALURGICAS: Bonds Get Default Ratings From Fitch
LOMA NEGRA: Concludes US$400M Debt Restructuring
MULTICANAL: Moody's Affirms Caa1 FC Rating, Negative Outlook

PINTURERIA PROFESIONAL: Seeks Court Permission To Reorganize
TGS: DebtTraders Issues Buy Recommendation
TINTEX SACIIF: Court Assigns Bankruptcy Receiver
TRANSPORTE TOMEO: Court Orders Bankruptcy
TRANSPORTES CONTAINER SERVICE: Files "Concurso Preventivo"

* Government Refusing to Repay US$3 Billion IMF Loan


B R A Z I L

AES: Reaches Restructuring Agreement With BNDES
AMBEV: S&P Affirms Ratings; Outlook Stable
ARACRUZ CELULOSE: Upgrades Fiberline B Evaporation Unit Controls
ARACRUZ CELULOSE: Riocell is New GuaĦba Unit


C H I L E

COEUR: Completes Final Notes Conversion and Redemption


E C U A D O R

ANDINATEL: More Executives Threaten Resignation


M E X I C O

GRUPO IUSACELL: DebtTraders Issues Distressed Review
HYLSAMEX: Expects Good 2H03 Results
SAVIA: Seminis Stockholders Approve Merger
VITRO: Develops New Wine Bottle Technology


V E N E Z U E L A

CANTV: Selects iBasis for International Voice Service

     -  -  -  -  -  -  -  -

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

LIAT: Integration Plans "Well Advanced," says Chief
---------------------------------------------------
Gary Cullen, chief executive of ailing Caribbean airline LIAT
said that the carrier's Recapitalization program is gaining
momentum. A report from the Antigua Sun quoted the executive as
saying the airline's plans for its inclusion in the new single
regional carrier, Caribbean International Airways (Holding) Ltd.
(CIAH) are "well advanced".

Mr. Cullen emphasized that the airline had tried to remain
faithful to the integrity of its schedule and service levels
despite its financial troubles. However, he admitted that there
were occasions when the airline fell short of expectations due to
shortage of aircraft.

A company press release on Friday said, "Fresh equity is
committed by key government shareholders - Antigua & Barbuda,
Barbados and St. Vincent & the Grenadines, with the support of
Trinidad & Tobago. The timely delivery of this investment will
ensure that LIAT has adequate funds to develop its business prior
to its incorporation into (CIAH)."

"Work is well advanced on the formation of the new airline. It is
planned to incorporate LIAT, BWIA and other smaller airlines in
the region thereby creating a single regionally owned state of
the art airline system for long haul international routes and
connections and services throughout the Eastern Caribbean. Senior
executives in LIAT and BWIA are working closely with the single
airline technical co-ordinator, Ian Bertrand in preparing plans
for a January 2004 start up," the statement added.

CONTACT:  Jennifer Carlson-Linskey
          Phone: 268 480 5850
          Email: linskeyj@liatairline.com



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

ACINDAR: US$100M of Bonds Rated 'D(arg)' by Local Fitch
-------------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. assigned a 'D(arg)'
rating to a total of US$100 million of corporate bonds issued by
Acindar Industria Argentina de Aceros. Comision Nacional
Valores(CNV), the country's securities regulator, relates that
the rating was based on the Company's finances as of the end of
June this year.

The bonds were described as "Obligaciones Negociables simples, no
convertibles en acciones, autorizadas por AGO y E de fecha
5.8.96" due on February 16 next year. The ratings agency said
that such rating is given to bonds are assigned to financial
obligations that are in default.

The Company is involved in the production of non-flat steel
products such as steel pipe, cable, hot-rolled and cold-drawn
steels for concrete, forged bars and blocks for distributors of
steel products, other steel companies, manufacturers of original
equipment for several industrial sectors including the automotive
and the oil and gas industries and end users, mainly in the
construction and agricultural sectors of the economy. Its
principal market is Argentina, although it exports its products
to Brazil, Chile and the United States, Bolivia and Uruguay
through its sales office, said the Financial Times.

CONTACT:  Acindar Industria Argentina de Aceros SA
          2739 Estanislao Zeballos Beccar
          Buenos Aires
          Argentina B1643AGY
          Phone: +54 11 4719 8500
          Fax: +54 11 4719 8501
          Home Page: http://www.acindar.ar.com
          Contact:
          Arturo Tomas Acevedo, Chairman


CAPEX: Fitch Assigns Default Ratings To Bonds
---------------------------------------------
Comision Nacional Valores, Argentina's securities regulator
reveals that a total of US$145 million in corporate bonds issued
by Capex S.A. were given default ratings by Fitch Argentina
Calificadora de Riesgo S.A. last week.

The `D(arg)' rating applies to bonds described as "Obligaciones
Negociables Cimples". Some US$40 million of these matures matures
on June 11 next year, while the rest come due on December 23,
2004. The bonds were classified as "simple issue", said the CNV.

Fitch said that the given rating is assigned to financial
commitments, which are currently in default.

The Company's main activities are the production and distribution
of electric energy, propane, butane and gasoline and exploration
and exploitation of petroleum and gas.

CONTACT:  Capex SA
          5/F DepartmentC
          948/950 Av Cordoba
          Buenos Aires
          Argentina
          Phone: +54 11 4322 4884
          Home Page: http://www.capex.com.ar
          Contact:
          Enrique Gotz, Chairman
          Dr. Alejandro Enrique Gotz, Vice Chairman


CAPEX: Fitch Rates US$150M of Bonds 'C(arg)'
--------------------------------------------
A total of US$150 million of corporate bonds issued by Capex S.A.
garnered a 'C(arg)' rating from Fitch Argentina Calificadora de
Riesgo S.A., relates the country's securities regulator Comision
Nacional Valores (CNV).

Fitch said that the rating, which was given last last week
denotes an extremely weak credit risk relative to other issues in
Argentina. Capacity for measuring financial commitments is solely
reliant upon sustained, favorable business or economic
conditions.

The rating, which was based on the Company's finances as of the
end of April this year, applies to bonds, which the CNV described
as "Obligaciones Negociables Cimples". The bonds were classified
as "Simple Issue", matures on January 1, 2005.


DUVI: Submits "Concurso Preventivo" Motion
------------------------------------------
D.U.V.I. S.A., based in Buenos Aires, is seeking court permission
to undergo reorganization. A report from local news portal
Infobae indicates that the Company submitted its motion for
"Concurso Preventivo" to the city's Court No. 9. Clerk No. 18
assists the court on the case, the report adds.

CONTACT:  D.U.V.I. S.A.
          Jose Pedro Varela 3231
          Buenos Aires


EDENOR: Fitch Hands Down Default Ratings on Bonds
-------------------------------------------------
Corporate bonds issued by Argentine company Edenor S.A. received
default ratings from the local arm of Fitch Ratings Agency.
According to the country's securities regulator, Comision
Nacional Valores (CNV), the ratings agency issued a `D(arg)'
rating to bonds called "obligaciones negociables".

A total of US$600 million worth of bonds, whose maturity date was
not revealed, were affected. The rating was issued based on the
Company's finances as of the end of June 2003.


EDITORIAL PERFIL: Fitch Rates Bonds `D(arg)'
--------------------------------------------
Editorial Perfil's corporate bonds called "Primera serie de
obligaciones negociables" received default ratings from Fitch
Argentina Calificadora de Riesgo S.A., relates the Comision
Nacional Valores, the country's securities regulator.

The bonds were worth a total of US$25 million, and were
classified under "series and/or class". However, their maturity
date was not revealed.

The ratings agency said that the `D(arg)' rating, which was based
on the Company's finances as of the end of June 2003, is given to
financial commitments that are in payment default.


INDUSTRIAS METALURGICAS: Fitch Moves Bonds to Junk Territory
------------------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. assigned junk ratings
to US$250 million of corporate bonds issued by Industrias
Metalurgicas Pescarmona recently. Argentina's Comision Nacional
Valores relates that the rating was based on the Company's
finances as of the end of April this year.

The affected bonds were described as "Programa de obligaciones
negociables" and were classified under "Program". The maturity
date, however, was not revealed.

Fitch said that `C(arg)' ratings denote an extremely weak credit
risk relative to other issues in the country. Capacity for
meeting financial commitments is solely reliant upon sustained
favorable business or economic conditions.


INDUSTRIAS METALURGICAS: Bonds Get Default Ratings From Fitch
-------------------------------------------------------------
Industrias Metalurgicas Pescarmona's corporate bonds were rated
`D(arg)' by Fitch Argentina Calificadora de Riesgo S.A., relates
the country's securities regulator, Comision Nacional Valores.

The rating, which was based on the Company's finances as of the
end of April 30 this year, applies to US$150 million of bonds
called "2Ĥ Serie emitida por U$S 150 millones del Programa Global
de U$S 250 millones".

Fitch said that the said rating is given to issues that are
currently in default.


LOMA NEGRA: Concludes US$400M Debt Restructuring
------------------------------------------------
Argentine cement maker Loma Negra C.I.A.S.A. concluded
restructuring of about US$400 million in debt, reports Dow Jones
Newswires, citing a statement the Company filed to the Buenos
Aires stock exchange.

The Company bought back US$120 million in debt at a 32% discount
and US$3.4 million at par value, according to the filing. Owners
and shareholders provided US$70 million of the funds used to buy
back the debt. The Company provided the rest.

Its subsidiary, Ferrosur Roca, has also convinced its creditor
banks to accept a debt-restructuring offer, said the Loma Negra.

About ARS100 million in bonds held by pension funds were
exchanged for new 10-year notes worth $39.8 million and paying
interests between 5.5% to 10.5%, the Company added.

The Company, which defaulted on some US430 million in debt last
year, said it had paid off interest rates accrued since its
default.

Loma Negra is also issuing bonds worth a total of US$226 million,
which will be swapped for existing notes. Three new bonds will be
issued. One is a five-year bond series totaling $27.2 million,
which pays between LIBOR +2% and LIBOR +3%; the second is an
eight-year note worth $161.8 million, offering an interest rate
of between LIBOR +3% to LIBOR +4.5% and a five-year peso-
denominated "step up" bond, worth ARS109 million ($1=ARS2.935),
which is indexed to inflation and offers interest rates of 5% to
8%, said the report.


MULTICANAL: Moody's Affirms Caa1 FC Rating, Negative Outlook
------------------------------------------------------------
Moody's Investors Service confirmed its Caa1 foreign currency
rating with negative outlook on Multicanal S.A. on Monday. The
ratings agency has recently upgraded the rating from Ca.

Other ratings on the Company were confirmed. Moody's said that
the Senior Implied Rating, the Senior Unsecured Issuer Rating,
Global MTN program, US$526.4 million aggregate of Senior
Unsecured Notes were all affirmed at Ca. Outlook is negative.

The ratings agency said that the ratings are no longer
constrained by the sovereign ceiling, are now pegged entirely to
ultimate anticipated recovery levels for the company's creditors,
and reflect Moody's expectation of loss severity for senior
unsecured claims of 30% or greater under an assumed restructuring
of the company's balance sheet that would allow it to continue as
a going concern.

The possible impact on operational cash flow of a lack of pricing
power, with a pass through to rates of less than half of general
price inflation (WPI) over the past 18 months, and weaker pricing
and churn levels after a likely public utility tariff increase,
which has not occurred since the float of the Peso is denoted by
the negative outlook, said Moody's.

The possibility of a ratings downgrade remains if the free cash
flow reported in this year's first half proves unsustainable.


PINTURERIA PROFESIONAL: Seeks Court Permission To Reorganize
------------------------------------------------------------
Buenos Aires-based Pintureria Profesional S.A. is seeking court
permission to undergo reorganization, relates local news portal
Infobae. The Company has submitted its motion for "Concurso
Preventivo" to the city's Court No. 25.

The report adds that the court works with Clerk No. 49 on the
case. It did not indicate, however, whether the motion is likely
to merit the court's approval.

CONTACT:  Pintureria Professional S.A.
          Condarco 1319
          Capital Federal



TGS: DebtTraders Issues Buy Recommendation
------------------------------------------
DebtTraders initiated coverage of Argentina's Transportadora de
Gas del Sur's $150 million 4.4% Series 1 Bonds due March 2003,
$150 million 10.375% Series 2 Bonds due April 2003, and $100
million 3.41% Series 3 Bonds due March 2003, as well as the
Company's $200 million 3.95% Notes due April 2006, with a BUY
recommendation, a SAFETY rating of 80% and an ATTRACTIVENESS
rating of 82%:

"We recommend investors BUY the notes based on 1) The Company's
ability, in our view, to repay principal in full, through a
rescheduling process (rather than a restructuring one); 2) TGS'
operations in non-regulated activities that partially isolate the
Company from the effect of pesification and freezing of tariffs;
3) A relatively low leverage (Debt-to-EBITDA of 5.6 times at the
end of the second quarter of 2003), and high operating and EBITDA
margins of 48% and 66%; and 4) An estimated average Internal Rate
of Return of 14.46% under our Base Case Scenario assuming full
principal repayment in 10 years, 2.0 times EBITDA/Interest
expense coverage, and the refinancing of approximately $187
million residual principal in 2013 at a leverage ratio of
approximately 1.03 times."

"Our recommendation is also based on a SAFETY rating of 80% and
anATTRACTIVENESS rating of 82%. The SAFETY rating reflects TGS'
ability to repay the full amounts of principal outstanding if it
is able to reschedule its obligations. The ATTRACTIVENESS rating
reflects an estimated IRR of 14.35% at a trading price of 67.0."

Analyst: Rafael Elias

Phone: +1 212-247-5300

TINTEX SACIIF: Court Assigns Bankruptcy Receiver
------------------------------------------------
Court No. 24 of Buenos Aires appointed local accountant Mr.
Eduardo Miguel Echaide as receiver for the bankruptcy of Tintex
S.A.C.I.I.F. Y.A., reports Infobae.

The receiver will verify creditors' claims until September 30.
After that, he will prepare the individual reports, which must be
presented to the court on October 31. The court also requires the
receiver to prepare a general report on the bankruptcy process
and file it this December 2.

CONTACT:  Eduardo Miguel Echaide
          Sanchez de Loria 155
          Buenos Aires


TRANSPORTE TOMEO: Court Orders Bankruptcy
-----------------------------------------
Buenos Aires' Court No. 2 orders the bankruptcy of local company
Transporte Tomeo S.A., reports Infobae. Clerk no. 4 assists the
court on the case.

The designated receiver is local accountant, Mauricio Mudric, who
will verify creditors' claims until October 14 this year. The
court also ordered the receiver to prepare individual and general
reports, which must be filed by December 9, 2003 and February 17,
2004, respectively.

CONTACT:  Trasporte Tomeo S.A.
          Moreno 955
          Buenos Aires

          Mauricio Mudric
          Tucuman 893
          Buenos Aires


TRANSPORTES CONTAINER SERVICE: Files "Concurso Preventivo"
----------------------------------------------------------
Transportes Container Services S.R.L., which is domiciled in
Buenos Aires, filed a motion for "Concurso Preventivo" to the
city's Court No. 13. The Company is seeking the court's
permission to undergo reorganization.

A report from local news portal Infobae relates that the court
works with Clerk No. 25 on the case.

However, the report did not indicate whether the motion is likely
to be granted. In the event that it is approved, the court will
assign a receiver to oversee the reorganization process.

CONTACT:  Transportes Container Service S.R.L.
          Maipu 763
          Buenos Aires


* Government Refusing to Repay US$3 Billion IMF Loan
----------------------------------------------------
A successful restructuring of Argentina's US$103 billion public
debt is becoming an impossible prospect as the government
officials withhold obligations to the International Monetary
Fund.

Up until the eve of the country's deadline to repay its US$3
billion loan from the Fund and reach a new long-term agreement,
President Nestor Kirchner's administration remained unwilling to
accede to demands for it to overhaul the country's banking
sector, cut the deficit, and increase public utility rates.

According to the Associated Press, a meeting between President
Kirchner and Central Bank President Alfonso Prat Gay resulted in
few changes in the government's stance Monday evening.  The IMF
did not immediately issue a statement when the deadline lapsed
yesterday.

Argentina needs a new long-term agreement with the IMF in order
to devise a plan to restructure its huge public debt, on which it
defaulted in December 2001.  The Fund, however, wants the
government to introduce deep reforms as a pre-requisite to a new
deal, which government negotiators for months have refused to
accept.  Finally, in an effort pressure the Fund into signing a
new agreement, the government has held back payment of the US$3
billion loan until a possible deal is imminent.

Cabinet Chief Alberto Fernandez recently said the government
would never dip into its reserves to meet the IMF payment.



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

AES: Reaches Restructuring Agreement With BNDES
-----------------------------------------------
The AES Corporation (NYSE: AES) announced on Monday that it has
entered into a memorandum of understanding with Banco Nacional de
Desenvolvimento Economico e Social (BNDES) to restructure the
outstanding loans owed to BNDES by several of AES' Brazilian
subsidiaries. The restructuring will include the creation of a
new company that will hold AES' interests in AES Eletropaulo, AES
Uruguaiana and AES Tiete. AES Sul will be contributed upon the
successful completion of its financial restructuring. AES will
own 50.1%, and BNDES will own 49.9%, of the new company. Under
the terms of the agreement, 50% of the currently outstanding
BNDES debt of $1.2 billion will be converted into 49.9% of the
new company. The remaining outstanding balance of $515 million
(which remains non-recourse to AES) will be payable over a period
of 10 to 12 years. AES and its subsidiaries will also contribute
$85 million as part of the restructuring, of which $60 million
will be contributed at closing and $25 million will be
contributed one year after closing.

Closing of the transaction is subject to the negotiation and
execution of definitive documentation, certain lender and
regulatory approvals and valuation diligence to be conducted by
BNDES.

Paul Hanrahan, President and Chief Executive Officer of AES,
stated, "We are encouraged by the Brazilian government's recent
commitments to address the lingering effects of rationing on the
sector. In doing so, Brazil is taking a crucial step toward
creating a climate that is conducive to new investment. We look
forward to working with BNDES."

"This agreement with BNDES places AES' Brazilian businesses on a
financially sound footing and allows AES to renew our commitment
to doing business in Brazil," said Joseph C. Brandt, Executive
Vice President and Chief Operating Officer of AES. "The past
eighteen months have been a difficult period for our investments
in Brazil, the Brazilian power sector and our relationship with
the Bank. With this agreement, we welcome BNDES as our partner
and look forward to the shared successes of these businesses."

AES is a leading global power company comprised of contract
generation, competitive supply, large utilities and growth
distribution businesses.

The company's generating assets include interests in 119
facilities totaling over 46 gigawatts of capacity, in 28
countries. AES' electricity distribution network sells 89,614
gigawatt hours per year to over 11 million end-use customers.

For more general information visit our web site at www.aes.com or
contact investor relations at investing@aes.com.

CONTACT:  AES
          Kenneth R. Woodcock
          Phone: 703-522-1315


AMBEV: S&P Affirms Ratings; Outlook Stable
------------------------------------------
Standard & Poor's Ratings Services on Monday affirmed its 'BBB-'
local currency and 'B+' foreign currency corporate credit ratings
on AmBev-Companhia de Bebidas da Am‚ricas (AmBev). The outlook on
AmBev's local and foreign currency ratings remains stable.

The local currency rating on AmBev reflects the strong
recognition of its proprietary brands and dominant position in
the Brazilian beverage industry; the operating benefits stemming
from its extensive and efficient distribution network; and its
solid financial profile, resulting from a prudent financial
policy and strong cash generation ability. The local currency
rating, which is above that of the Federative Republic of Brazil,
indicates that the company could withstand harsh scenarios
resulting from country risk or sovereign interference.

However, AmBev is still subject to vulnerabilities particular to
the country and their impact on future cash flow stability. The
company derives most of its revenues and cash flow from the
Brazilian market, and future growth and profitability are
susceptible to the volatility of the currency, to the strong
correlation between AmBev's sales and Brazilian GDP and income
level, and to a potential increase in tax charges. As a Brazilian
entity, AmBev also shows weaker financial flexibility when
compared to that of its international peers.

"The stable outlook on the local currency rating indicates that
despite a slow-growth market environment and the volatilities
inherent to the Brazilian economy, AmBev should maintain strong
levels of operating and financial performance in the next several
years, overcoming many of the country risks that affect Brazilian
corporations," said credit analyst Jean-Pierre Cote Gil. "The
stable outlook on the foreign currency rating reflects that of
the sovereign rating on Brazil."

Analyst:  Jean-Pierre Cote Gil
          Sao Paulo
          Phone: (55) 11-5501-8946

          Milena Zaniboni
          Sao Paulo
          Phone: (55) 11-5501-8945


ARACRUZ CELULOSE: Upgrades Fiberline B Evaporation Unit Controls
----------------------------------------------------------------
Physical switchover from Fisher-Provox to Foxboro system at
world-scale pulp mill in Espirito Santo State in Brazil completed
in just over three hours

Foxboro, a unit of Invensys, on Monday announced that Aracruz
Celulose, the world's leading producer of bleached eucalyptus
pulp, recently established a new industry record by completing
the physical switchover of more than 1,000 I/O points from a
legacy Fisher-Provox control system to a modern I/A Series
automation system in just three hours and seven minutes. This
control system migration was performed with the assistance of
Invensys' migration experts at Aracruz Celulose's Fiberline B
evaporation unit at the company's world-scale pulp mill in
Espirito Santo State, Brazil. "This sets a clear record for
Foxboro, and - to the best of our knowledge - for any controls
vendor at any customer site anywhere in the world," said Mike
Caliel, president of Invensys Process Systems.

"The success of this modernization project is the result of a
partnership with Foxboro and Invensys that began seven years
ago," said Mr. Luiz Renato Figueiredo, Aracruz's engineering
manager. "During this period, we have worked together to
continuously fine-tune the manner in which we plan and execute
system modifications and improvements. With each new project, we
have set new records of accomplishment."

This record-setting automation upgrade was performed using
Foxboro's unique system migration approach. This approach
utilizes special input/output (I/O) modules that are functionally
identical to ordinary I/A Series modules, but are re-packaged to
plug right into the existing Fisher Provox (or other vendors')
I/O racks. These I/O modules enable the physical switchover to be
accomplished without moving any field wiring, thus dramatically
minimizing production downtime.

Prior to shutting down the existing Fiberline B evaporation unit
control system on the scheduled system switchover date, the joint
Aracruz and Invensys migration team prepared all I/A Series
screens, defined the control strategies, converted the database
and thoroughly tested all elements.

The same migration approach was previously utilized to replace
the Fisher Provox boiler controls on Fiberline B. According to
Mr. Floreal Puig, Aracruz recovery and utility manager, based on
the success of these two upgrades, the approach is being
considered for other mill areas as well.

Fiberlines A and C at the Espirito Santo State mill are already
under I/A Series control.

Invensys operates in more than 60 countries, with its
headquarters in London. For more information, visit
www.invensys.com .

I/A Series, Foxboro, APV, Avantis, IMServ, SimSci-Esscor,
Triconex, and Wonderware are trademarks of Invensys plc, its
subsidiaries, or affiliates. All other trademarks are trademarks
of their respective owners.

CONTACT:  Invensys
          Paul Miller
          Phone: 508-549-6240
          Email: paul.miller@invensys.com


ARACRUZ CELULOSE: Riocell is New GuaĦba Unit
--------------------------------------------
Aracruz Celulose held last week a press conference to a group of
more than 30 journalists at the Plaza Sao Rafael Hotel in Porto
Alegre. The event marked the beginning of its operations in the
southern Brazilian state of Rio Grande do Sul after its purchase
of Riocell from the Klabin group in July. The campaign shows that
Aracruz, like the Ga£chos (as the inhabitants of the state are
known), cultivate traditions, respects the environment and plants
a future that has solid roots. As of this date, as well, Riocell
has adopted the Aracruz name, a very valuable global brand. The
pulp mill and forest plantations located in Rio Grande do Sul now
constitute the new Aracruz GuaĦba Unit, while the mill and
plantations in EspĦrito Santo and Bahia comprise the Barra do
Riacho Unit.

"We conducted feasibility studies on whether or not we should
maintain the Riocell name, taking into account their degree of
recognition in Brazil and abroad and also consulted the worldwide
customers of the two companies. We reached the conclusion that
keeping two names would generate competition and a dispersal of
brand values, thereby losing the beneficial effects of the sum of
the two," explained Aracruz's President and CEO Carlos Aguiar. He
commemorated the second month of production records on the part
of the recently acquired unit and announced a program to
reconstitute forests in Rio Grande do Sul. The purpose of the
program is to obtain higher density wood and to enhance the mill
in order to obtain marginal increases in current production.

Management exercised special care during the transition, a period
during which the unit passed from control of Klabin to Aracruz.
To do so, a work group comprising employees from both companies
was set up to deal with the transition in key areas
(communication, finance, office of the controller, legal and
human resources). An in-house communications program was
implemented to ensure that all employees were given regular
information about the changeover. Trips made by all of Aracruz's
directors to GuaĦba helped reinforce the climate of trust and the
commitment to growth - part of the company's philosophy that was
transmitted to the employees.

Besides Carlos Aguiar, other senior managers in Rio Grande do Sul
for the launch of the campaign included Joao Felipe Carsalade,
commercial director; Walter LĦdio Nunes, operations director -
who has become general manager of the GuaĦba Unit on an interim
basis; and Isac Zagury, financial director. Subsequent to the
meeting with the press, the campaign was presented first-hand to
the GuaĦba Unit's employees.



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

COEUR: Completes Final Notes Conversion and Redemption
------------------------------------------------------
Coeur d'Alene Mines Corporation (NYSE: CDE), the world's largest
primary silver producer, announced on Monday it has completed the
redemption of its remaining outstanding 13 3/8% Senior
Convertible Notes. Since the end of the second quarter, $9.9
million of the 13 3/8% Notes were converted into 7.3 million
shares of common stock pursuant to the original terms of the
indenture. In addition, on September 5, 2003, the Company
completed its previously announced redemption of the remaining
$61,000 principal amount of 13 3/8% Notes for approximately
$64,000, which includes accrued interest.

Since the beginning of 1998, Coeur's total debenture indebtedness
has been reduced from $288.6 million to the current level of
$19.1 million. At June 30, 2003, the Company's cash and cash
equivalents totaled approximately $20 million.

Coeur d'Alene Mines Corporation is the world's largest primary
silver producer, as well as a significant, low-cost producer of
gold, with anticipated 2003 production of 14.6 million ounces of
silver and 112,000 ounces of gold. The Company has mining
interests in Nevada, Idaho, Alaska, Argentina, Chile and Bolivia.

Contact:  Tony Ebersole
          Director of Investor Relations
          Phone: 208-665-0335



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

ANDINATEL: More Executives Threaten Resignation
-----------------------------------------------
A number of top executives at Ecuador's state fixed-line operator
have threatened to resign, reports Business News Americas.
Andinatel chair Rocio Bohorquez and board secretary Jaime Galvez,
as well as the vice presidents of business, legal affairs,
operations and finances have issued the warning.

The country's holding company Fondo de Solidaridad (FS) began
negotiations with the executives to prevent further resignations
at the Company. The report said that the threat was issued in
support of Andinatel CEO Richard Jaramillo, who resigned
recently, reportedly due to political pressure.

Citing an unnamed Company source, the report indicated that Mr.
Jaramillo remains chief executive at the Company's mobile venture
Telecsa. Army Major Luis Ricalde takes over his seat as Andinatel
CEO.

Senator Gilmar Gutierrez, brother of President Lucio Gutierrez
reportedly attempted to coerce Mr. Jaramillo to reinstate
Andinatel's Director of Branches, Javier Alban. Mr. Alban was
terminated earlier for abusing his position of trust.

Employees' representative Giovanni Cabrera said Gutierrez had
asked Alban to employ 240 members of the Patriotic Society (SP)
political party, the report adds.



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

GRUPO IUSACELL: DebtTraders Issues Distressed Review
----------------------------------------------------
DebtTraders issued on Monday a Distressed Review on Mexico's
Grupo Iusacell that assesses the outlook for Grupo Iusacell
bondholders in the following issues: Grupo Iusacell Celular 10%
Senior unsecured Notes due 2004 ("Notes due '04") and the Grupo
Iusacell 14.25% Senior Notes due 2006 ("Notes due '06"). In this
Distressed Review, we assess the outlook for bondholders of the
following issues: Series B 11.75% Senior Unsecured Notes due
2/15/08 and 12.875% Senior Unsecured Notes due 5/15/08 (the
"Senior Notes").

Estimated recovery values for the Notes due '06 range from 6% to
21%, also below current levels of 30/33.5. As such, we recommend
investors Sell the Notes due '04 and '06. Only under our Best
Case scenario, do we arrive at recovery rates for the Notes due
'04 that exceed current prices, with a potential recovery of up
to 70%. Under a Best Case scenario, estimated recovery values for
the Notes due '06 are still below current levels.

Analyst:  George Monserrat
          + 1 212 247-5300


HYLSAMEX: Expects Good 2H03 Results
-----------------------------------
Mexican steel maker Hylsamex expects that this year's second half
will be a good one. Reuters News quoted the Company's Chief
Executive Alejandro Elizondo as saying, "We are seeing (the
second semester) with optimism. We are confident that the Mexican
economy will grow at a faster pace and that demand for our
products will be tied to that growth."

However, said the report, the Company did not dismiss the
possibility that it might be selling some of its assets or join a
venture to boost its performance. The Company, which is owned the
by Grupo Alfa conglomerate, had troubles after a slowdown in the
world economy and lower steel prices. The report added that the
Company restructured its debt in 2002.

Mr. Elizondo said that the Company is stepping up its production
in order to meet local and U.S. demand. However, the officer did
not elaborate.

Hylsamex has five major divisions: flat steel, Bar and Rod,
Galvacer, Hyl and Acerex. Its trademarks include Agropanel,
Galmet, Galvanok, Galvatherm, Supermuro 1000, Aklum, Galuzinc,
Galvamet, Galvatile and Superwall.

CONTACT:  Hylsamex S.A. de C.V.
          101 Ave Munich Cuauhtemoc
          66452 San Nicolas de los Garza
          Nuevo Leon
          Mexico
          Phone: +52 81 8865 2828
          Fax: +52 81 8865 1210
          Home Page: http://www.hylsamex.com.mx
          Contact:
          Engr. Dionisio Garza Medina, Chairman
          Alejandro Elizondo Barragan, Chief Executive Engr


SAVIA: Seminis Stockholders Approve Merger
------------------------------------------
Savia S.A. de C.V. (BMV:SAVIA) (NYSE:VAI) announced on Monday
that the stockholders of Seminis Inc. approved on Sept. 5 its
previously announced merger agreement relating to the proposed
transaction with Fox Paine & Company LLC, a San Francisco-based
private equity firm, Savia S.A. de C.V., Seminis' majority
stockholder and certain related parties. Subject to satisfaction
of applicable closing conditions, including obtaining the
necessary financing, Savia and Seminis currently expect to
complete the merger by the end of September 2003. Following
completion of the merger, Seminis will be privately held, will no
longer be a subsidiary of Savia and Seminis' shares will no
longer be listed on the Nasdaq National Market.

Savia (www.savia.com.mx) participates in industries that offer
high growth potential in Mexico and internationally. Its
principal subsidiaries include Seminis, a global leader in the
production and marketing of fruit and vegetable seeds; Bionova, a
company focused on the production, distribution and
commercialization of fruits and vegetables; and Desarrollo
Inmobiliario Omega, a company dedicated to the development of
real estate in Northern Mexico.

Fox Paine & Company LLC (www.foxpaine.com) manages investment
funds in excess of US$1.5 billion, providing equity capital for
corporate acquisitions, company expansion and growth programs and
management buyouts. The Fox Paine funds are managed on behalf of
over 50 leading international financial institutions, including
major governmental and corporate pension systems, Fortune 100
companies, major life and property & casualty insurance and
reinsurance companies, money center and super regional commercial
banks, investment banking firms and university endowments. Fox
Paine was founded in 1997 by Saul A. Fox, a former general
partner of Kohlberg Kravis Roberts & Co., and W. Dexter Paine
III, a former general partner of Kohlberg & Co.

Savia's financial statements are prepared in compliance with
generally accepted accounting principles in Mexico. For the
consolidation of domestic subsidiaries, Savia follows the
guidelines set forth in bulletin B-10 and for foreign companies
follows the guidelines set forth in bulletin B-15. Seminis and
Bionova report following the generally accepted accounting
principles of the United States (GAAP) that differ from the
generally accepted accounting principles of Mexico. These results
are adjusted to reflect the above-mentioned guidelines. In
addition, Seminis reports its fiscal year the first quarter of
October through the last of September. Savia reports its fiscal
year on a calendar basis, including in its consolidated results
the operations of Seminis according to calendar year.

CONTACT:  Savia S.A. de C.V., Monterrey
          Francisco Garza
          Phone: 011-81-81-73-55-00
          Email: fjgarza@savia.com.mx


VITRO: Develops New Wine Bottle Technology
------------------------------------------
Opening a bottle of wine no longer requires being a corkscrew
expert. Vitro Packaging, Inc., Vitro's U.S. subsidiary, announced
on Monday that it has jointly developed, with Gardner
Technologies, a Napa, California-based wine technology company,
an innovative glass wine bottle for Gardner's revolutionary new
product, MetaCorkT. MetaCork is a twist-to-uncork wine opener
that integrates the traditional look of cork and foil finished
wine with state-of-the-art technology. In addition, MetacorkT
offers a drip resistant pouring feature and an airtight, reseal
cap.

Nearly 60,000 MetaCorkT-sealed bottles of Amusant, Clos du Bois,
and Fetzer's Super Premium brands are being test marketed in
restaurants, wine shops, and selected retail chain stores in
California and Texas. Early reports indicate that consumers are
marveling at the fact that all it takes is a simple twist of the
wrist to remove the cork.

"Vitro is well known for its innovative products, value enhanced
and highdegree-of-difficulty packaging design. However, no other
product development has been as special as this one. Not only for
its level of innovation or for being part of a strategic sales
line, but also for the extensive time required to develop dozens
of variations on the basic concept before reaching the final
design for Burgundy and Claret wine bottles," said Jose C.
Fuentes, New Product Development Manager at Vitro Packaging.

Vitro is known for its innovative solutions challenging product
design. "Our work with Gardner Technologies on their patented
bottle design was one of our most rewarding successes. We worked
side-by-side with Gardner's product development team over a two-
year period to refine dozens of variations on the basic concept
before arriving at the final solution. It was truly a hand-on,
strategic design process." Said Jose C. Fuentes, New Product
Development Manager at Vitro Packaging.

"Projects such as MetaCorkT strengthen our participation in the
North American economy", said Alfonso Gomez Palacio, President of
Vitro's Containers business unit. " When completed, this project
will involve a California Company, our Texas Commercial
headquarters, our glass containers production facility located in
Monterrey, Mexico, as well as thousands of US consumers. This is
a huge opportunity for us to show our capabilities to a worldwide
wine industry."

MetaCorkT was designed by Dr. William Gardner, Chief Technology
Officer and founder of Gardner Technologies. He developed his
first prototype in 1996, but the product's design was not
finalized until the latter part of 2000. MetaCorkT encompasses a
unique bottle design with a built-in cork anchor that enables the
consumer to remove a cork or synthetic stopper with nothing more
than a few twists of the capsule.

"We affectionately refer to MetaCorkT as a twist-capsule, since
it clearly is not a screw cap! In fact, MetaCorkT has created an
entirely new category for wine packaging. Additionally, MetaCorkT
is 100% recyclable and provides a convenient reseal cap and drip-
resistant pouring feature--all with the same attractive
appearance of the traditional foil capsule," said Dr. Gardner.

"Bottles sealed with MetaCorkT have the same aesthetic qualities
as traditional wine bottles, but its functionality is what makes
the difference. Creating bottles for MetaCorkT required a great
deal of analysis and the development of several prototypes and
plant unit-cavity samplings. We also created a complete set of
molds for first production manufacturing," Fuentes explained.
Fuentes added, "One of the primary challenges of this project was
to maintain a balance between the technology that provides the
new functionality and the aesthetic requirements for a wine
package. In addition, the design of the bottle finish with its
specifications for glass had to be compatible with the unique
requirements of the plastic capsule, and had to ensure that the
MetaCorkT system would work without any problems for the
consumers.

"To date, a critical factor in Gardner's success is its
supportive partnerships with wine producers and equipment and
material suppliers. We have the good fortune of being able to
share our vision with some of the top names in the wine
industry," said William Borghetti, CEO of Gardner Technologies.

"Take Vitro Packaging, for instance. Vitro is one of the world's
leading glass manufacturers and is at the forefront of new bottle
design for the wine industry. Since no glass manufacturer had
ever produced a bottle that met our unique specifications, we
needed a partner who could take on such a technical challenge and
work with us to ensure that quality was top notch," Borghetti
added.

Even though it is very difficult to innovate in a traditional
industry, customers are the ones who have the final word.
"MetaCorkT should have great consumer appeal since it allows
consumers to concentrate on enjoying the wine, rather than
worrying about how to open it properly. MetaCorkT furthers
Fetzer's goal of creating innovative ways to improve the
consumer's wine experience," said Doug Gillespie, Global Brand
Director for Fetzer Vineyards.

Lee Farlander, President of Vitro Packaging, emphasized that
"Vitro Packaging's participation in this type of project enables
the company to enhance its design cabilities. Our main focus is
to develop and manufacture value-added glass containers that
allow us to provide our customers with the most advanced
technological solutions."

While it is premature to speak about sales projections, if the
market tests are as positive as expected, other wine companies
will certainly want to join this superior wine experience. In the
mean time, Gardner Technologies and Vitro Packaging will jointly
continue to develop innovative packaging solutions.

"Vitro Packaging has developed what we believe is the largest
selection of wine molds in the industry. Wineries now have a
large selection of shapes, sizes, colors and new closure
alternatives to add value to these products".

An additional advantage of doing business with Vitro Packaging is
the company's focus on delivering high-quality customer service;
each client is part of a dedicated team.

With offices in Napa, Sacramento, Dallas, Atlanta and New York,
Vitro Packaging serves the U.S. in the 48 contiguous states. Its
2002 sales reached US $209 million, accounting for 25% of Vitro's
Glass Containers business' total sales. Thanks to the efforts of
its 98 employees, Vitro Packaging continues to grow in 2003, with
sales up 5.1% year to date.

For more information about Gardner Technologies, Inc., MetaCorkT
and Vitro Packaging, please visit www.gardnertech.com,
www.metacork.com and
www.vitro.com/vitro_packaging/ingles/home.htm, respectively.

CONTACT:  Vitro, S.A. de C.V.

          Beatriz Martinez
          Phone: +52 (81) 8863 - 1528
          Email: bemartinez@vitro.com

          Jorge Torres
          Phone:  +52 (81) 8863 - 1240
          Email: jtorres@vitro.com



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

CANTV: Selects iBasis for International Voice Service
-----------------------------------------------------
iBasis, Inc. (OTCBB: IBAS), the leader in Internet-based voice
communications, on Monday announced that Cantv, the largest
telecommunications carrier in Venezuela, has interconnected with
The iBasis Network(TM) for international voice services. By
interconnecting with iBasis Cantv is able to route international
voice traffic over The iBasis Network, as well as complete calls
for iBasis over Cantv's extensive network in Venezuela.

Cantv joins the more than 180 carriers worldwide who have formed
partnerships with iBasis to send and receive international long
distance calls over the company's Cisco Powered Network which has
carried more than six billion minutes of international calls. By
providing Tier One quality international service to these
carriers, iBasis has become one of the world's 10 largest
carriers of international traffic(1) and was recently ranked by
global service providers as the world's best international
wholesale carrier(2).

"Leading national carriers like Cantv are recognizing the
compelling value proposition of Tier One quality VoIP from
iBasis," said Ofer Gneezy, president and CEO of iBasis. "By
leveraging our many carrier relationships around the world, Cantv
is able to deliver the highest quality international service
while maintaining its focus on developing innovative voice and
data products and growing its customer base."

"iBasis brings us an opportunity to expand and enhance our
international service," said Alfonso Olombrada, Interconnection
Manager of Cantv. "As the leading provider of voice and data
services in Venezuela, we wanted to work with a global provider
that would support our high quality of service for our customers
while expanding our global communications footprint."

About Cantv

Cantv, a Venezuelan corporation, is the leading Venezuelan
telecommunication services provider with approximately 2.7
million access lines in service, 2.6 million cellular subscribers
and 195,616 thousands Internet subscribers as of December 31,
2002. The company's strategic shareholders are affiliated of
Verizon Communications Inc. with 28.5% of the outstanding capital
stock (Class B Share), and retirees' and employees' trusts, which
own 11.9% (Class C Shares). Public shareholders hold the
remaining 46.1% of the outstanding capital stock.

About iBasis

Founded in 1996, iBasis (OTCBB: IBAS) is a leading provider of
wholesale international telecommunications services. The company
was named by service providers for two consecutive years as the
best international wholesale carrier in Atlantic-ACM's annual
International Wholesale Carrier Report Card. iBasis is a
preferred provider for many of the largest carriers in the world,
including AT&T, Cable & Wireless, China Mobile, China Unicom,
MCI, Sprint, Telefonica, Telenor, and Telstra. iBasis has carried
more than six billion minutes of international voice traffic over
its global Cisco Powered Network(TM), and is one of the ten
largest carriers of international voice traffic in the world. The
company can be reached on the Internet at www.ibasis.com.

(1)Estimated rank based on 1H 2003 iBasis traffic compared to
international traffic volumes for carriers as published in
TeleGeography 2003.

(2)Atlantic-ACM International Wholesale Carrier Report Card 2003
- February 2003

CONTACT:  iBasis, Inc.
          Chris Ward
          Phone: 781-505-7557
          Email: cward@ibasis.net

               ***********


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.


* * * End of Transmission * * *