/raid1/www/Hosts/bankrupt/TCRLA_Public/030929.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Monday, September 29, 2003, Vol. 4, Issue 192

                          Headlines

A R G E N T I N A

BANCO FRANCES: Adding Insurance Operations to Enhance Income
CABLEONDA: Court Orders Bankruptcy Proceeding
CAPEX: Production, Sales Decline Lead to Loss
CASA LERCHUNDI: Credit Verification Ends
DELLI: Claims Verification Process Ends November 20

EQUIMAX: Proofs of Claim Period Closes
FAMMSA: Credit Verifications For Bankruptcy To Close Today
FRESKURAL: Bankruptcy Initiated, Creditors to File Claims
GARDEY Y ASOCIADOS: Involuntary Bankruptcy Made Official
INSTITUTO DE CORONEL: Bahia Blanca Court Orders Bankruptcy

LA TRADICION AGROPECUARIA: Court Assigns Receiver For Bankruptcy
LE BOULEVARDS: Creditor Forces Bankruptcy Proceeding
MOLPA: Court Assigns Receiver For Reorganization
NEO COMUNICACIONES: Court Approves Bankruptcy Petition
NIKKO QUIMICA: Creditors' Claims Verifications End Today

PEIRONI: Reorganization Ends In Bankruptcy
PROMACO: Proof of Claims Period Ends
SITRANS: Bankruptcy Proceedings Begin
SUAVECITOS: Creditor's Request For Bankruptcy Approved
TEXTIL GUARA: Assets Face Liquidation After Bankruptcy Process


B O L I V I A

COTEL: Intervention Yields Good Results


B R A Z I L

AHOLD: Brazil's Justice Ministry Recommends Separate Sale
CEMAT: Cancels $175M Bond Issue as BNDES Steps In


C O L O M B I A

EMCALI: Government, Creditors Reach Preliminary Debt Accord
UNION FENOSA: Latin American Pullout Likely to Cut Losses


E C U A D O R

BANCO DEL PACIFICO: BNP Presents Valuation, Sale Strategy
PETROECUADOR: Cancels Drillfor Contract as Inadequate
* Fitch Revises Ecuador's Outlook to Stable; Affirms CCC+ Rating


J A M A I C A

C&W JAMAICA: To Shut Down Three Offices
JPSCO: KSAC Demands Rebate on Payments For Malfunctioning Lights


M E X I C O

CONE MILLS: Shareholders Move To Block Asset Sale
INNOVA: Moody's Upgrades, Confirms Ratings
UNEFON: TV Azteca Contemplates Spin-Off


V E N E Z U E L A

HECLA MINING: Unfazed by Venezuela's Action on CVG Contracts
PDVSA: Chacin To Lead Northern District of Eastern Division


     - - - - - - - - - -

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

BANCO FRANCES: Adding Insurance Operations to Enhance Income
------------------------------------------------------------
Argentine bank BBVA Banco Frances, one of the country's three
largest private banks, is offering benefits for auto insurance
policy holders. According to local financial daily El Cronista,
Banco Frances, a subsidiary of Spanish financial group BBVA, is
offering clients who sign up for auto insurance at the bank, a
25% discount on all auto-related purchases made with the bank's
credit and debit cards.

Earlier this month, the bank launched both life and accident
insurance products to boost insurance related income. Local
consultancy Argentine Research's managing director Rafael Ber
told Business News Americas that BBVA Frances' aggressive push in
the insurance market is part of an ongoing trend in Argentina,
where the major banks are seeking to offset reduced interest
income from lending by increasing their insurance operations.

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


CABLEONDA: Court Orders Bankruptcy Proceeding
---------------------------------------------
Buenos Aires-based company Cableonda was declared bankrupt by the
city's Court No. 2, reports Argentine newspaper Infobae. The
receiver assigned to the process is Mr. Daniel Altman. The report
adds that the deadline for verification of credit claims is
November 27 this year. This step will clarify the nature and
amount of the Company's debts.

After the verifications, the receiver will prepare the individual
reports, followed by the general report. However, the source did
not mention whether the court has set the deadlines for the
submission of these reports.

CONTACT:  Cableonda S.A.
          Esmeralda 561
          Buenos Aires

          Daniel Altman
          Parana 774
          Buenos Aires


CAPEX: Production, Sales Decline Lead to Loss
---------------------------------------------
Capex, one of the major thermal power generators in Argentina,
reported losses of ARS271,000 (some US$93,000) during the three
months to July 31, Business News Americas reports. In a statement
to the Buenos Aires stock market Wednesday, the Company revealed
accumulated losses were ARS97.2 million at July 31 and working
capital deficit was ARS787 million.

Power production fell 5.82% to 1,198GWh in the three months to
July compared to the same period 2002. Power sales fell 8.48%
to1,177GWh as a result of plant maintenance work. Sales revenues
increased 8.9% to ARS36 million despite pesofied rates, because
of price increases brought on by greater demand. Oil production
decreased 12.8% to 16,886 cubic meters because of the lower
demand for gas, which in turn resulted from lower power demand,
the statement added.

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


CASA LERCHUNDI: Credit Verification Ends
----------------------------------------
The reorganization of Casa Lerchundi proceeds with the
preparation of the individual reports. An earlier report by the
Troubled Company Reporter - Latin America indicated that the
deadline for the authentication of credit claims expires today.

The Company, which is based in Cordoba, started its
reorganization after the province's Court No. 13 approved its
motion for "Concurso Preventivo". Local accountant Carlos Alberto
Arnedo was designated as the Company's receiver, reported
Argentine news portal Infobae.

In the meantime, local sources did not reveal whether the court
has set date for the informative assemble as well as the
deadlines for the individual and the general reports, which will
be prepared by the receiver.

CONTACT:  Casa Lerchundi S.A.C.I.F.
          Parana 26
          Cordoba

          Carlos Alberto Arnedo
          General Paz 108
          Cordoba


DELLI: Claims Verification Process Ends November 20
---------------------------------------------------
Creditors of Argentine company Delli S.A. are given until
November 20 to have their claims verified for the Company's
bankruptcy proceedings, reports local news source Infobae. Proofs
of claims must be presented to the Company's receiver, Mr.
Adalberto Abel Corbelleri before the said date.

The bankruptcy process began after Buenos Aires' Court No. 15,
which is assisted by Clerk No. 29, ruled that the Company is
"Quiebra Decretada".

The receiver is also tasked with the preparations for the
individual and general reports, but the source did not mention
whether the court has set the deadlines for the submission of
these reports.

CONTACT:  Adalberto Abel Corbelleri
          Carabobo 237
          Buenos Aires


EQUIMAX: Proofs of Claim Period Closes
--------------------------------------
Equimax S.R.L., which is domiciled in Buenos Aires is set to
complete the verification process for its bankruptcy today. Its
receiver, Mr. Deferico Alberto Mansbach, who verifies the claims,
will be preparing the individual reports.

An earlier report in the Troubled Company Reporter - Latin
America indicated that the city's Court No.22, which ordered the
Company's bankruptcy, requires the receiver to submit the
individual reports on November 10 this year.

After the individual reports are processed at court, the receiver
will prepare a general report, which must be filed at the court
on December 23.

CONTACT:  Federico Alberto Mansbach
          Tucuman 1506
          Buenos Aires


FAMMSA: Credit Verifications For Bankruptcy To Close Today
----------------------------------------------------------
Court No. 20 of Buenos Aires orders the receiver of local company
Fabrica Argentina de Molduras Metalicas to prepare the individual
reports for the Company's bankruptcy. The receiver, Ms. Maria
Elena Mercante, closes the claims verification process today.
Earlier this year, the court, working with the city's Clerk No.
39, ordered the Company's bankruptcy and set the schedule for the
bankruptcy proceedings.

The individual reports must be presented to the court on November
11 followed by the general report on December 22, according to an
earlier report by the Troubled Company Reporter - Latin America.
The general report is prepared after the individual reports are
processed at court.

CONTACT:  Fabrica Argentina de Molduras Metalicas S.A.
          Junta 2669
          Buenos Aires

          Maria Elena Mercante
          Uruguay 772
          Buenos Aires


FRESKURAL: Bankruptcy Initiated, Creditors to File Claims
---------------------------------------------------------
Buenos Aires Court No. 1 orders the bankruptcy of local company
Freskural S.A.. A report by Argentine news source Infobae relates
that the Company was deemed "Quiebra Decretada" by the court.
A local accountant, Mr. Ruben Hugo Faure, was assigned as the
Company's receiver. His duties include the verification of credit
claims, and the preparation of the required reports.

Infobae relates that the Company's creditors must present their
proofs of claim for verification before November 4 this year.
However, the source did not mention whether the court has set the
deadlines for the individual and general reports.

CONTACT:  Ruben Hugo Faure
          Ave. Rivadavia 1227
          Buenos Aires


GARDEY Y ASOCIADOS: Involuntary Bankruptcy Made Official
--------------------------------------------------------
Argentine publication company Gardey y Asociados S.R.L. is
officially bankrupt, according to a report by local newspaper La
Nacion. Dr. Vassallo, insolvency judge for Buenos Aires' Court
no. 5 approved a petition for the Company's bankruptcy filed by
its creditor, Mr. Mariano Fabian Garcia.

Buenos Aires accountant Mr. Flora Fabian is assigned as the
Company's receiver, who will verify creditors' claims and prepare
the required reports. Without mentioning the deadlines for the
filing of the individual and general reports, the source revealed
that the credit verification process will end on November 26 this
year.

Buenos Aires' Clerk NO. 9, Dr. Perez Casado assists the court on
the case.

CONTACT:  Gardey y Asociados S.R.L.
          7th Floor, Room B
          Ave. Callao 661
          Buenos Aires

          Flora Pazos
          1st Floor, Office 4
          Montevideo 527
          Buenos Aires


INSTITUTO DE CORONEL: Bahia Blanca Court Orders Bankruptcy
----------------------------------------------------------
The Civil and Commercial Tribunal of Bahia Blanca orders the
bankruptcy of local company Instituto de Coronel Rosales S.A.,
according to an Infobae report. The province's Court No. 5 and
Clerk No. 2 are working on the Company's case. The receiver, Mr.
Alfredo Horacio Lopez, will verify creditors' claims and prepare
the necessary reports. The Court ordered that the verifications
should be done by October 10 this year.

Infobae adds that the individual reports must be handed over to
the court on November 27, followed by the general report on
February 18 next year.

CONTACT:  Instituto de Coronel Rosales S.A.
          Colon 259
          Punta Alta, Bahia Blanca

          Alfredo Horacio Lopez
          Alsina 19
          Bahia Blanca


LA TRADICION AGROPECUARIA: Court Assigns Receiver For Bankruptcy
----------------------------------------------------------------
Buenos Aires Court No. 21 declared La Tradici¢n Agropecuaria S.A.
bankrupt, reports local newspaper La Nacion. The city's Clerk No.
41, Dr. Melnitzky, assists the insolvency judge, Dr. Paez
Castaneda, on the case.

Creditors are given until February 18 next year to have their
claims verified by the receiver, Mr. Juan Torres. He will prepare
the individual reports after the verifications are completed. The
receiver is also required to prepare a general report, but the
source did not indicate whether the court has set the deadlines
for the submission of these reports.

CONTACT:  La Tradicion Agropecuaria S.A.
          Arevalo 1549
          Buenos Aires

          Juan Torres
          Bogota 4090
          Buenos Aires


LE BOULEVARDS: Creditor Forces Bankruptcy Proceeding
----------------------------------------------------
Mr. Miguel De Julio, to whom Le Boulevards S.R.L. defaulted on
ARS29,034 of debt, successfully petitioned for the Company's
bankruptcy. A report by Argentine daily La Nacion indicates that
Dr. Fernandez, insolvency judge in Buenos Aires Court NO. 19
declared the baking company bankrupt.

Ms. Mabel Herrera, a local accountant was designated as the
Company's receiver. Creditors are required to present their
claims to Miss Herrera for verification before December 15 this
year.

Dr. Mazzoni, Buenos Aires Clerk No. 37 aids Dr. Fernandez on the
case. In the meantime, the source did not mention whether the
court has set the deadlines for the submission of the receiver's
reports.

CONTACT:  Le Boulevards S.R.L.
          Vieytes 1875
          Buenos Aires

          Mabel Herrera
          7th Floor, Room E
          Rodriguez Pena 694
          Buenos Aires


MOLPA: Court Assigns Receiver For Reorganization
------------------------------------------------
Mr. Roberto A. Boffa, an accountant from Buenos Aires, was
designated as receiver for the bankruptcy of local company Martin
Oswaldo Lopez Pereda y Asociados S.A. (M.O.L.P.A.). He will be
verifying creditors' claims until November 27 this year, relates
local news source Infobae.

The individual reports must be submitted to the court on February
11 next year. The receiver will prepare these reports after the
verification process is completed. The deadline for the general
report, which will be prepared after the individual reports are
processed in court, is March 24 next year.

The city's Court No. 6 handles the Company's case, assisted by
Clerk No. 12, the report adds.

CONTACT:  Roberto A. Boffa
          Uruguay 390
          Buenos Aires


NEO COMUNICACIONES: Court Approves Bankruptcy Petition
------------------------------------------------------
Neo Comunicaciones Publicitarias S.R.L., a publishing company in
Buenos Aires, enters bankruptcy. A report by local newspaper La
Nacion relates that the city's Court No. 8 approved a motion
bankruptcy filed by the Company's creditor, creatidad y Arte
Publicitario S.R.L. for nonpayment of debt.

Dr. Gonzales, the insolvency judge handling the case, assigned
Mr. Felipe Florio as the Company's receiver. He is to verify
creditors' claims until December 29 this year.

Clerk No. 15, Dr. Lazaeta, assists the court on the case. In the
meantime, La Nacion did not indicate whether the court has set
the deadlines for the filing of the receiver's reports.

CONTACT:  Neo Cominicaciones Publicitarias S.R.L.
          2nd Floor, Room B
          Rivadavia 1157
          Buenos Aires

          Felipe Florio
          8th Floor, Office P
          Uruguay 618
          Buenos Aires


NIKKO QUIMICA: Creditors' Claims Verifications End Today
--------------------------------------------------------
Buenos Aires accountant Jorge Arias closes the verifications of
claims for the bankruptcy of Nikko Quimica S.A. today. As ordered
by the court, the receiver will start preparing the individual
reports, which are due for submission on November 10.

The chemical maker entered bankruptcy on orders from the city's
Court NO. 9, the Troubled Company Reporter - Latin America
earlier said.

After the individual reports are processed at court, the receiver
will prepare the general report, which must be submitted to the
court on December 23. It is expected that the Company's assets
will be liquidated at the end of the bankruptcy process to
reimburse its creditors.

CONTACT:  Nikko Quimica S.A.
          O Higgins 2495
          Buenos Aires

          Jorge Arias
          Ave. Rivadavia 1227
          Buenos Aires


PEIRONI: Reorganization Ends In Bankruptcy
------------------------------------------
Peironi S.R.L., which was undergoing reorganization, enters
bankruptcy, according to a report by local news portal Infobae.
The credit verification process will be done "pro via
incidental".

The Company, which is domiciled in the Argentine province of
Santa Fe, was placed in the hands of Mr. Angel Speranza, who will
verify creditors' claims. The receiver is also tasked with the
preparations of the individual and general reports on the
process.

The bankruptcy began after the province's Court No. 1 ruled that
the Company is "Quiebra Decretada". The Company's creditors may
receive reimbursement if the Company's assets are liquidated at
the end of the process.

CONTACT:  Peironi S.R.L.
          Francia 1471
          Santa Fe


PROMACO: Proof of Claims Period Ends
------------------------------------
Mr. Alberto Annese, the receiver of Promaco Sur S.A. will prepare
the individual reports for the Company's reorganization as the
period for verifying creditors' claims ends today.

An earlier report by the Troubled Company Reporter - Latin
America indicated that the Civil and Commercial Tribunal of Bahia
Blanca approved the Company's petition to reorganize.

The receiver will prepare a general report after the individual
reports are processed at court. However, local sources did not
reveal whether the court has set the deadlines for the submission
of these reports.

CONTACT:  Alberto Annese
          Alsina 19
          Bahia Blanca


SITRANS: Bankruptcy Proceedings Begin
-------------------------------------
Mr. Enrique Jose Battellini, receiver for Sitrans S.A., will
verify creditors' claims until November 5 this year, as ordered
by the court. Argentine news source Infobae relates that the
Company is undergoing the bankruptcy process.

The individual reports, which are prepared after the verification
process, must be submitted to the court on December 17 this year.
The receiver will also prepare a general report on the process,
and submit it to the court on March 1 next year.

Working with Clerk No. 48, the Court will likely order the
liquidation of the Company's assets to repay its creditors.

CONTACT:  Enrique Jose Battellini
          Parana 774
          Buenos Aires


SUAVECITOS: Creditor's Request For Bankruptcy Approved
------------------------------------------------------
Dr. Vassallo, insolvency judge of Buenos Aires Court No. 5,
approved a petition for the bankruptcy of Suavecitos S.A.,
relates Argentine newspaper La Nacion. The Company's creditor,
Rowatex S.R.L. filed the petition for the Company's failure to
pay its debts.

The credit verifications for the bankruptcy proceedings will end
on November 28 this year, the report adds. Proofs of claim must
be presented to the receiver, Mr. Jose Sabuqui before that date.

It is expected that the textile company's assets will be
liquidated at the end of the bankruptcy process. Proceeds will be
used to reimburse its creditors.

CONTACT:  Sauvecitos S.A.
          Jose Barros Paazos 6734
          Y pasaje Managua 5423
          Buenos Aires

          Jose Sabuqui
          2nd Floor, Office 36
          B de Yrigoyen 330
          Buenos Aires


TEXTIL GUARA: Assets Face Liquidation After Bankruptcy Process
--------------------------------------------------------------
Argentine company Textil Guara enters bankruptcy on orders from
Buenos Aires Court No. 3. Ms. Nelida Haydee Grunblat, a local
accountant, was appointed as the Company's receiver. The receiver
is assigned to verify creditors' claims to determine the nature
and amount of the Company's debts. The court ordered that the
authentications end on November 21 this year.

After that, the receiver will prepare the individual reports,
which must be passed to the court on February 5 next year. The
general report should follow by April 18. It is expected that the
Company's assets will be liquidated at the end of the process.

CONTACT:  Textil Guara
          Juan B Alberdi 1635
          Buenos Aires

          Nelida Haydee Grunblat
          Mendes de Andes 1126
          Buenos Aires




=============
B O L I V I A
=============

COTEL: Intervention Yields Good Results
---------------------------------------
Bolivian telecoms regulator Sittel's intervention in La Paz-based
telephony cooperative Cotel proved to be a good move, suggests
Business News Americas. Before the intervention, Cotel's
liabilities stood at U$40 million. But the intervention, which
began in April, reduced the figure to around US$23 million,
according to administrator Javier Tapia, whose term as intervener
runs until October 4.

Since intervention, Mr. Tapia has modified Cotel's management
structure and bylaws, created a new wage structure, and
introduced new services such as long distance and Internet.
Mr. Tapia's last task at Cotel is to oversee the election of new
administrative and oversight boards, a process that started
Thursday with voting continuing through to Sunday.



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

AHOLD: Brazil's Justice Ministry Recommends Separate Sale
---------------------------------------------------------
Brazil's Justice Ministry has recommended to government
regulators that Dutch retailer Royal Ahold NV sell units in three
Brazilian cities separately to address antitrust concerns,
reports Bloomberg. Ahold is looking to sell stores in Feira de
Santana, Salvador and Aracaju in order to raise money to pay down
EUR11 billion ($12.6 billion) in debt.

"We don't want this sale to result in more market concentration,"
said Daniel Goldberg, secretary of the ministry's antitrust
division. "We want to limit conditions of buyers that already
have a large market concentration from adding more assets in
those markets."

The Finance Ministry also has recommended the separate sale of
assets in the three Brazilian cities. The government's antitrust
agency will rule on the matter by December, said Cleveland Prates
Teixeira, who is analyzing Ahold's asset sale for the agency.


CEMAT: Cancels $175M Bond Issue as BNDES Steps In
-------------------------------------------------
Brazil's Mato Grosso do Sul state power distributor Cemat, part
of the Grupo Rede, withdrew plans to issue BRL516 million (US$175
million) of non-convertible bonds.

The move, according to Business News Americas, came after energy
and mines minister Dilma Rousseff and national development bank
BNDES president Carlos Lessa detailed the BNDES's BRL3-billion
bailout plan for distributors earlier this month.

The recently unveiled financing package deemed the issue, which
gained the approval of Cemat board in March, unnecessary.



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

EMCALI: Government, Creditors Reach Preliminary Debt Accord
-----------------------------------------------------------
Colombia's government and creditors of Cali-based multi-utility
Emcali have reached a preliminary-agreement in relation to the
latter's US$500-million debt restructuring program, Business News
Americas reports, citing a source familiar with the operation.

Under the accord, the utility will pay off its debt in two
phases, the first in four years and the other in 14. The
agreement allows Emcali to increase rates 1%, proceeds of which
will go towards a social capitalization fund to strengthen the
utility.

The draft of the final agreement is expected to be ready by the
end of next week at the latest, the source added.

Colombia's utilities regulator Superservicios intervened in
Emcali in April 2000, and since then talks have involved
creditors, unions, and the renegotiation of a power purchase
agreement with owners and bondholders of the TermoEmcali power
plant.

The creditors of Emcali include local and international banks,
suppliers and the government via loans from the Inter-American
Development Bank and the Japan Bank for International
Cooperation.


UNION FENOSA: Latin American Pullout Likely to Cut Losses
---------------------------------------------------------
Spanish power utility Union Fenosa reaffirmed its goal of cutting
net debt to EUR6.5 billion (US$7.46 billion) this year and to
EUR5.0 billion in 2007 from EUR6.873 billion as of June 30,
relates Reuters. In order to achieve this goal, the Company is
considering pulling out its unprofitable investments in Latin
American and sell foreign assets as quickly as possible.

"We will be in the international electricity business only when
it is profitable ... and if it is not, as we did in the Dominican
Republic, we will pull out," Chairman Antonio Basagoiti told
analysts at a briefing in the historic fortified town of Avila,
northwest of Madrid.

Just recently, Union Fenosa sold its ailing power distributors
back to the Dominican Republic at a capital loss of EUR160
million. This led some analysts to wonder if it were the first
step to divesting businesses in Colombia, Mexico and Central
America as part of its plan to raise EUR700 million from
disposals.

The debt-reduction plan calls for the sale of non-strategic
assets such as a gas distributor in Uruguay, an electricity
distributor in the Philippines, and Cambridge Water in Britain.

Part of the divestment plan includes the sale of a 4.99% stake in
energy group CEPSA, pending an agreement with key shareholder
Santander Central Hispano.

Fenosa expects to raise some EUR100 million by selling its stake
in a consortium of 15 airports in the northwest of Mexico, a
joint investment it made with Spanish airports operator Aena and
the construction firm Dragados.



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

BANCO DEL PACIFICO: BNP Presents Valuation, Sale Strategy
---------------------------------------------------------
French investment bank BNP Paribas has completed the valuation of
Ecuador's state-owned bank Banco del Pacifico and has presented
this valuation to the monetary authority, Dow Jones reports,
citing a source familiar with the process. According to Sixto
Cuesta, a member of the board of directors at the central bank,
which controls Pacifico, BNP has also presented a strategy to
sell Banco del Pacifico.

The sale process will begin soon and that Pacifico should be sold
by November 2004, according to the terms agreed upon with the
International Monetary Fund (IMF), Mr. Cuesta said. The valuation
is one of the pledges with which the Ecuadorian government must
comply in order to receive new funding from the IMF. Mr. Cuesta
noted, however, that market conditions aren't favorable at the
moment.

"We don't want to sell the bank in conditions that aren't
advantageous," Mr. Cuesta said, noting that foreign banks aren't
investing in the country given the poor economic conditions. "The
central bank will evaluate the macroeconomic scenario to carry
out the sale."


PETROECUADOR: Cancels Drillfor Contract as Inadequate
-----------------------------------------------------
Petroproduccion, Ecuadorian state oil company Petroecuador's
production subsidiary, rescinded a US$270-million contract it
awarded to local firm Drillfor, newspaper El Comercio reports,
citing Petroproduccion VP Bolivar Araujo. The contract, awarded
in August, involved hiring two rigs from Drillfor to renew
drilling activities in the Shushufindi and Lago Agrio oil fields.
But Petroecuador annulled the contract because the Drillfor rigs
did not pass its technical inspections.

The rigs failed the inspection because they are "very old," and
Drillfor was unable to bring them up to Petroecuador's technical
standards in time, a company source said.

"We have already wasted 60 days in this process, and we need to
start drilling urgently," the source said.

Petroecuador will launch a new "emergency" tender this week, this
time for three rigs, to meet its goal of boosting output to
218,000 barrels a day (b/d) by year-end, the source said, adding
the Company could award the contract by next week.


* Fitch Revises Ecuador's Outlook to Stable; Affirms CCC+ Rating
----------------------------------------------------------------
Fitch Ratings revised Thursday the Rating Outlook on Ecuador's
sovereign ratings to Stable from Positive, on signs of fiscal
slippage that could increase pressures on the government's
already fragile liquidity position. The long-term foreign
currency rating was affirmed at 'CCC+', and the short-term
foreign currency rating at 'C'.

Fitch had placed the Ecuador ratings on Positive Outlook in April
following the government's commitment to an aggressive list of
reforms and performance criteria under a new IMF program. Since
then, however, progress on reforms has been slow and fiscal
targets have been missed. Authorities recently announced a
reduction in the 2003 and 2004 non-financial public sector
surplus targets to 1.5% of GDP for both years from 1.9% and 2.2%,
respectively -below the agreed levels with the Fund. The change
was attributed to a slowdown in the economy. Unbudgeted mid-year
increases in payroll and social security expenditures clearly
contributed to the revision. Economic growth, stable since the
1999-2000 financial crisis and default, is now decelerating, in
part because of concerns about the political feasibility of
further reform to maintain competitiveness in the context of full
dollarization.

Though there has been some fiscal slippage and little progress on
reform, the government has run consistent fiscal surpluses on a
cash basis, growth has remained positive, and debt ratios have
improved. Also public debt -which Fitch expects to reach about
60% of GDP this year- has declined in relation to GDP primarily
because of real exchange rate appreciation and economic growth.
In spite of favorable indicators, the rating is currently
constrained at 'CCC+' by Ecuador's weak external and fiscal
liquidity, political risks, concerns about willingness based on
past default, and the more recent generation of arrears to
suppliers, employees, and official creditors.

Fitch's external liquidity indicator for the Ecuador is 39%,
lower than all other 'B' range credits, and considerably lower
than the 136% median for 'B's. Tight liquidity caused the
sovereign to incur arrears to official creditors last year and
early this year. Should upcoming IMF disbursement be pushed back
significantly, the likelihood of payment delays to official and
bond creditors would increase.

CONTACT:  Fitch Ratings
          Morgan C. Harting
          Phone: 212-908-0820

          Theresa Paiz Fredel
          Phone: 212-908-0534

          Media Relations:
          Matt Burkhard
          Phone: 212-908-0540



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

C&W JAMAICA: To Shut Down Three Offices
---------------------------------------
In a bid to improve operational efficiency, telecommunications
provider Cable and Wireless Jamaica Limited will be shutting down
three of its commercial offices Thursday, RadioJamaica.Com
reports.

The offices that are due for closure are the North Pembroke
office located at Mary Brown's Corner, the Ocho Rios and Negril
offices. As a result, 200 positions will be made redundant at the
end of this month.

Cable and Wireless' President Gary Barrow explained last month
that the drive to improve efficiency was in response to the
dynamic nature of the telecoms environment.


JPSCO: KSAC Demands Rebate on Payments For Malfunctioning Lights
----------------------------------------------------------------
The Jamaica Public Service Company (JPSCo) is now facing pressure
from the Kingston and St Andrew Corporation (KSAC) to return the
payments made for the supply of electricity to streetlights,
which have not functioned for the last two-and-a-half years, the
Jamaica Observer reports.

"This Council has been fighting with the JPS for the last 10
years," KSAC chairman and Kingston mayor, Desmond McKenzie, said.
"We should be asking them to give the people of Kingston and St
Andrew a seven-year rebate; but because it is a new company we're
going to ask for a rebate for the last two-and-a-half years."

Mirant, a United States-based company, took control of JPSCo in
March 2001 after acquiring majority shares in the formerly state-
run utility.

The rebate will be in addition to the $2 million, which the KSAC
has already threatened to withhold in street light payments.

During a press briefing earlier this month, McKenzie said the
KSAC would withhold the funds every month until the city's 2,500
malfunctioning streetlights were fixed.

The KSAC pays approximately $18 million to JPSCo every month, for
an estimated 23,000 streetlights.



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

CONE MILLS: Shareholders Move To Block Asset Sale
-------------------------------------------------
WL Ross & Co.'s plan to buy substantially all of the assets of
denim producer Cone Mills Corporation for US$90 million is widely
opposed by the latter's shareholders, according to an AP Online
report.

Cone Mills filed for Chapter 11 bankruptcy Wednesday and said it
has accepted a letter of intent from WL Ross & Co. to purchase
substantially all of the assets of the Company. The transaction,
including cash and assumed loans and liabilities, has been
approved by the Company's Board.

However, shareholders are opposed to the proposed buyout and have
pushed through their nominees for the Company's board of
directors.

"This is a clear message to the Cone board. Cone shareholders
want to see the company reorganized, not sold to W.L. Ross
(Co.)," said Marc Kozberg, a company director who leads the
dissident shareholders. "We are confident that superior
alternatives are available and intend to explore them fully."

The sale is subject to approval by a federal bankruptcy judge.
The Company said proceeds from the transaction likely won't be
sufficient to provide any money for shareholders.

Cone Mills makes the fabric for Levi's jeans, among others. It
employs more than 3,000 people in five factories in the
Carolinas, along with a joint venture in Mexico.


INNOVA: Moody's Upgrades, Confirms Ratings
------------------------------------------
Moody's Investors Service takes various actions on the ratings of
Innova S. de R.L., a Mexico city-based satellite pay-TV company.
The agency upgraded Innova's senior implied rating to B2 from B3;
senior unsecured issuer rating to B2 from B3; and US$88 million
(remaining amount) of 12-7/8% senior unsecured notes due 2007 to
B2 from B3.

Simultaneously, Moody's confirmed Innova's US$300 million of 9-
3/8% senior unsecured notes due 2013 at B2. The outlook on the
all the ratings has been changed to stable from positive.

The upgrades follow Innova's successful issuance of US$300
million of new senior unsecured debt and the formal
capitalization of shareholder loans and accrued interest totaling
approximately US$380 million.

The stable outlook incorporates Moody's belief that strong
operating performance by the Company in recent periods will
continue, cash flow growth will accelerate, and that certain
other external events are likely to have a favorable impact on
the company and its business prospects.

Specifically, Moody's believes that the company will be able to
grow free cash flow based on continued under-penetration of the
pay-TV market in Mexico, limited market share gains, ongoing
success with its differentiated programming strategy, declining
subscriber acquisition costs, more competitive upfront fees,
further economies of scale and possible cancellation of the tax
on pay-TV services.

New York
Russell Solomon
Senior Vice President
Corporate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Mexico City
Martin R. Lara
Vice President - Senior Analyst
Corporate Finance Group


UNEFON: TV Azteca Contemplates Spin-Off
---------------------------------------
Mexican broadcaster TV Azteca confirmed Thursday it is
considering a spin-off of its stake in cellular telephone company
Unefon, a plan widely applauded by analysts, relates Reuters.
Company spokesman Daniel McCosh said the Company is seeking
feedback from investors for the plans before moving ahead.

The separation from Unefon SA may encourage investors that TV
Azteca will focus exclusively on broadcasting, after controlling
owner Ricardo Salinas Pliego angered some investors by buying the
46.5% stake in 1999 and later extending loans to it, said Jean-
Charles Lemardeley, an equity analyst at J.P. Morgan Securities
Inc. in New York.

"This is what the market has been clamoring for them to do," said
Daniel Lerner, a debt analyst at Bear Stearns & Co. in New York.
"They seem to have been tidying up all the risk issues in a row
that the market had overwhelmed them with since 2002."

In a spin-off, TV Azteca shareholders would receive one share of
Unefon for each TV Azteca share they owned, analysts said.

Unefon is likely to be known as Azteca Telecom after the spin-
off, they said. TV Azteca and Azteca Telecom would have separate
boards and independent representation for minority shareholders.



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

HECLA MINING: Unfazed by Venezuela's Action on CVG Contracts
------------------------------------------------------------
Hecla Mining Company (NYSE:HL) said the news that the Venezuelan
government has formally announced it will re-examine some mining
contracts granted by the CVG (Corporacion Venezolana de Guayana -
- the government development company in the Guayana region) will
not impact Hecla's operations. Hecla's La Camorra gold mine is
not a CVG contract, but is a mining concession located in the El
Dorado mining district in central eastern Venezuela.

Hecla Chief Executive Officer and President Phillips S. Baker,
Jr., said, "We are very comfortable that this effort by the
Venezuelan government does not affect any of our present or
planned operations in Venezuela. Our Block B development lease in
the El Callao mining district was fully approved by the Ministry
of Energy and Mines and does not come under the category of
contracts to be examined, nor do our concessions that contain our
La Camorra mine and the Canaima development property. We believe
our CVG contracts are in good standing and our operations and
development projects will move forward as planned."

Hecla does hold CVG contracts on some exploration properties
which could fall under this decree. However, the company believes
even these properties are in full legal, regulatory and filing
compliance.

Hecla Mining Company (S&P, CCC+ Corporate Credit Rating,
Positive), headquartered in Coeur d'Alene, Idaho, mines and
processes silver and gold in the United States, Venezuela and
Mexico. A 112-year-old company, Hecla has long been well known in
the mining world and financial markets as a quality silver and
gold producer. Hecla's common and preferred shares are traded on
the New York Stock Exchange under the symbols HL and HL-PrB.
(Troubled Company Reporter, September 25, 2003, Issue No. 190)


PDVSA: Chacin To Lead Northern District of Eastern Division
-----------------------------------------------------------
Venezuela's state oil company PDVSA continues to restructure its
management with the appointment of Orlando Chacin as the new head
of the northern district of PDVSA's eastern division. Mr. Chacin,
who was previously the director of production in Anzoategui
state, replaced Johnny Gonzalez, who has now moved to the western
state of Barinas.



               ***********


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
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Information contained herein is obtained from sources believed to
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