TCRLA_Public/031013.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, October 13, 2003, Vol. 4, Issue 202

                          Headlines


A R G E N T I N A

ARMANDO AUTOMOTORES: Court Orders Bankruptcy
COLORFOT: Receiver Prepares Individual Reports
COMPANIA ARENERA: Enters Bankruptcy on Court Orders
CP DE MAYO: Receiver To File Individual Reports Today
DECON: Receiver Verifies Claims For Bankruptcy Until November 17

EL RINCON DE TORRES: Reorganization Ends In Bankruptcy
ENVIO EXPRESS: Credit Verification Period Ends Today
FAZIP: Individual Reports Due For Filing Today
HURD SUDAMERICANA: Voluntarily Files For Bankruptcy
MARINA GRANDE: Credit Verifications For Bankruptcy Ends Nov 7

NIFERVIDA: Receiver Verifies Claims For Bankruptcy
PARAISO: Court Orders Bankruptcy
ROSSI Y VILAPRENO: Court Assigns Receiver For Bankruptcy
TECNO MEDIC: Court Sets Schedule For Bankruptcy Process
WOLFF: Credit Check For Bankruptcy Ends Today


B E R M U D A

TYCO INTERNATIONAL: Ex-CEO Becomes First Witness In Trial


B R A Z I L

ARACRUZ CELULOSE: Announces 3Q03 Results
BANCO RURAL: Moody's Assigns B2 to $500M Euro Note Program
CEMAR: Moves Closer to Privatization
ENDESA CHILE: Appeals to Court to Reactivate Paralyzed Ops
GERDAU: Issues $100M Worth of One-Year Notes


C H I L E

MADECO: To Participate In Quinenco Group Day At The NYSE
NEXTEL CHILE: Court Rules Against Cellular Telephone Operators


C O L O M B I A

TELECOM: Liquidator To Begin Paying Labor Debt Oct. 15


G U A T E M A L A

EXMIBAL: Inco Denies Reports on Reactivation Plans


J A M A I C A

AIR JAMAICA: Concludes Rationalization Program



P A N A M A

CSS: Braces For More Strikes



P E R U

BANCO WIESE SUDAMERIS: Government Shifting Debt to Taxpayers


V E N E Z U E L A

CANTV: This Year's Investment to Close at $80M
PDVSA: May Peg Orimulsion To Heavy Crude Prices
PDVSA: Inks JV Accord With Oil India

     -  -  -  -  -  -  -  -

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

ARMANDO AUTOMOTORES: Court Orders Bankruptcy
--------------------------------------------
Judge Gonzalez of Buenos Aires' Court No.8 ordered the bankruptcy
of local auto company Armando Automotores S.A., reports local
newspaper La Nacion. The ruling comes after the Company's
creditor, Coto C.I.C.S.A., filed a bankruptcy petition at the
court.

Working with, Dr. Saravia, the city's Clerk No. 16, the court
assigned Mr. Alberto Francisco Romeo as the Company's receiver,
who will verify creditors' claims until December 9 this year. The
receiver is also required to prepare the individual and general
reports on the process, but the source did not reveal whether the
court has set the deadlines for the submission of these reports.

CONTACT:  Armando Automotores S.A.
          Ave La Plata 2941
          Buenos Aires

          Alberto Francisco Romeo
          5th Floor, Room 9
          Parana 275
          Buenos Aires


COLORFOT: Receiver Prepares Individual Reports
----------------------------------------------
Creditors of Buenos Aires-based Colorfot S.A. must have their
claims authenticated by the receiver, as the deadline for credit
verifications expires today. The receiver, Monica Cecilia Rapp y
Asociadod, will start preparing the individual reports.

The receiver is also required to prepare the general report after
the individual reports are processed in court. However, local
sources did not reveal the deadlines for the submission of the
receiver's reports.

Buenos Aires Court No. 1 issued the bankruptcy order, according
to an earlier report by the Troubled Company Reporter - Latin
America. Clerk No. 2 aids the court on the case, which is likely
to end with the liquidation of the Company's assets.

CONTACT:  Monica Cecilia Rapp y Asociados
          Ave. Cordoba 873
          Buenos Aires


COMPANIA ARENERA: Enters Bankruptcy on Court Orders
---------------------------------------------------
Buenos Aires Court No. 25 ordered the bankruptcy of Compania
Arenera del Norte S.A., reports local news portal Infobae. The
Company, which was undergoing reorganization, is now in the hands
of Mr. Bernardo Walfogiel, the appointed receiver.

Creditors are required to have their claims verified by the
receiver before November 19 this year, after which the receiver
will prepare the individual reports on the results. The reports
must be filed at the court by February 5 next year.

The receiver will also prepare a general report after the
individual reports are processed in court. This report must be
submitted to the court on March 18, 2004. The Company's assets
will likely be liquidated at the end of the process to reimburse
its creditors.

CONTACT:  Bernardo Waldfogiel
          Loyola 660
          Buenos Aires



CP DE MAYO: Receiver To File Individual Reports Today
-----------------------------------------------------
The individual reports for the bankruptcy of Cordoba-based
Clinica Privada de Mayo S.A. must be submitted to the province's
Civil and Commercial Tribunal today. The receiver, Ms. Estela
Viviana Scatolini, prepared the reports after the credit
verification process was completed last August 29.

After these reports are processed at court, the receiver will
prepare the general report. Local sources, however, did not
reveal the deadlines for the filing of this report.

CONTACT:  Estela Viviana Scatolini
          12 de Octobre 60
          Rio Tercero
          Cordoba


DECON: Receiver Verifies Claims For Bankruptcy Until November 17
----------------------------------------------------------------
Buenos Aires Court No. 17 ruled that local company Decon S.A. is
"Quiebra Decretada", reports Argentine news source Infobae. With
assistance from the city's Clerk No. 34, the court assigned Ms.
Maria del Carmen Sabugal as receiver for the process.

The credit verification period ends on November 17 this year.
Creditors must have their claim authenticated by the receiver
before that date. The receiver is required to prepare the
individual and general reports to be submitted to the court on
February 2, and March 15, 2004, respectively.

The Company's assets are likely to be liquidated at the close of
this process in order to pay its creditors.

CONTACT:  Maria del Carmen Sabugal
          Moreno 850
          Buenos Aires


EL RINCON DE TORRES: Reorganization Ends In Bankruptcy
------------------------------------------------------
El Rincon de Torres S.A., which was undergoing reorganization,
entered bankruptcy, reports Argentine newspaper La Nacion. The
Civil and Commercial Tribunal of Bahia Blanca orders that the
verification process will be done "por via incidental".

The case is under the jurisdiction of the province's Court No. 5,
the source adds without revealing the name of the Company's
receiver. Clerk No. 2 assists the court on the case.

CONTACT:  El Rincon de Torres S.A.
          Avellaneda 1782
          Coronel Suarez
          Bahia Blanca


ENVIO EXPRESS: Credit Verification Period Ends Today
----------------------------------------------------
The allocated time for the credit verification process for the
bankruptcy of Envio Express S.R.L. ends today, October 13. The
Company's receiver, Miss. Susana Ines Santorsola, who verified
the claims, will prepare the individual reports on the results of
the verifications.

The Troubled Company Reporter - Latin America earlier reported
that the Company entered bankruptcy on orders from the city's
Court No. 12. Clerk No. 23 assists the court on the case.

The individual reports must be presented to the court on November
24. After these are processed at court, the receiver will prepare
the general report on the process. The court ruled that this
report must be filed by February 5, 2004.

The Company's assets will likely be liquidated at the end of the
process to reimburse its creditors.

CONTACT:  Susana Ines Santorsola
          Marcelo T. de Alvear 1363
          Buenos Aires


FAZIP: Individual Reports Due For Filing Today
----------------------------------------------
Buenos Aires' Court No. 24 expects the receiver of Fazip S.C.A.
to file the individual reports on the Company's bankruptcy today,
October 13. The receiver, Mr. Hector Francisco Presta, prepared
the reports after the credit verifications were completed last
September 1.

After the individual reports are processed at court, the receiver
will prepare the general report, which is to be submitted to the
court on November 24 this year, according to an earlier report
released by the Troubled Company Reporter - Latin America.

CONTACT:  Hector Francisco Presta
          Avenida Belgrano 1705
          Buenos Aires


HURD SUDAMERICANA: Voluntarily Files For Bankruptcy
---------------------------------------------------
Hurd Sudamericana S.A., which is domiciled in Buenos Aires,
voluntarily files for bankruptcy, according to an Infobae report.
The city's Court No. 6 and Clerk No. 11 handle the Company's
case, the source adds without indicating whether the motion will
merit the court's approval.

CONTACT:  Hurd Sudamerica S.A.
          Maipu 1252
          Buenos Aires


MARINA GRANDE: Credit Verifications For Bankruptcy Ends Nov 7
-------------------------------------------------------------
The bankruptcy of Buenos-Aires based company Marina Grande S.R.L.
proceeds with the receiver verifying creditor's claims. A report
by Argentine news portal Infobae indicates that the receiver, Ms.
Alejandra Ethel Giacomini, has to complete the authentication
process by November 7 this year.

The receiver will prepare the individual reports on the results
of the verification process. These reports must be presented to
the court on December 22. After these are processed at court, the
receiver will prepare the general report, which is due for
submission on March 08.

CONTACT:  Alejandra Ethel Giacomini
          Carabobo 250
          Buenos Aires


NIFERVIDA: Receiver Verifies Claims For Bankruptcy
--------------------------------------------------
Creditors of Buenos Aires-based Nifervida S.A. must present their
proofs of claims to the Company's receiver for authentication. An
Infobae report indicates that the deadline for verifications for
the Company's bankruptcy is December 3 this year.

The receiver assigned to the case is Ms. Marta Tignanelli, a
local accountant. Aside from verifying creditors' claims, the
receiver is required to prepare the individual and general
reports for the process. The source, however, did not mention the
deadlines for the filing of the receiver's reports.

CONTACT:  Nifervida S.A.
          Sucre 3267
          Buenos Aires

          Marta Tignanelli
          Reconquista 715
          Buenos Aires


PARAISO: Court Orders Bankruptcy
--------------------------------
Buenos Aires-based Paraiso S.A. entered bankruptcy on orders from
the city's Court No. 4. The city's Clerk No. 7 assists the court
on the case, Infobae indicates.

The court set December 23 this year as the deadline for the
verification of creditors' claims. The receiver, Mr. Victor
Tomasi, a local accountant, will verify the claims.

The receiver's duties also include the preparation of the
individual and general reports. However, the source did not
mention whether the court has set the deadlines for the filing of
these reports.

CONTACT:  Paraiso S.A.
          Ave de la Plata 303
          Buenos Aires

          Victor Tomasi
          Uruguay 660
          Buenos Aires


ROSSI Y VILAPRENO: Court Assigns Receiver For Bankruptcy
--------------------------------------------------------
Ms. Maria Marta Sommariva, an accountant from Buenos Aires, takes
over local company Rossi y Vilapreno S.A. as receiver during the
Company's bankruptcy process. The city's Court No. 25 orders the
verification period to end on November 20 this year.

After the credit verification process is completed, the receiver
will prepare the individual reports to be submitted on February 6
next year. After these are processed at court, the receiver will
prepare a general report to be filed on March 19 next year.

CONTACT:  Maria Marta Sommariva
          Florida 930
          Buenos Aires


TECNO MEDIC: Court Sets Schedule For Bankruptcy Process
-------------------------------------------------------
Buenos Aires Court No. 21 has set the schedule for the bankruptcy
of local company Tecno Medic S.A., relates local news source
Infobae. The individual reports, which are prepared after the
verification process is completed, must be submitted on March 16,
2004. The general report must be presented to the court on April
27.

The receiver, Ms. Silvana Noemi Cirigliano, will verify
creditors' claims until February 3 next year, the source adds.
This part of the bankruptcy process is done to determine the
amount and nature of the Company's debts.

CONTACT:  Silvana Noemi Cirigliano
          Viamonte 1348
          Buenos Aires



WOLFF: Credit Check For Bankruptcy Ends Today
---------------------------------------------
Mr. Carlos Wulff, the court-designated receiver of Buenos Aires-
based company, Wolff Iluminacion S.A., should complete the credit
verification process for the Company's bankruptcy today,
according to a report released earlier by the Troubled Company
Reporter - Latin America. This step in the bankruptcy process
determines the amount and nature of the Company's debts.

The receiver will now start preparing the individual reports,
which would focus on the results of the verification process.
After these are processed at court, the receiver will then
prepare the general report. However, local sources did not reveal
the deadlines for the submission of these reports.

The city's Court No. 26 issued the bankruptcy order, the TCR-LA
earlier revealed. Clerk No. 52 assists the court on the case.

CONTACT:  Wolff Iluminacion S.A.
          Echevarria 2430
          Buenos Aires

          Carlos Wulff
          Virey del Pino 2354
          Buenos Aires



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

TYCO INTERNATIONAL: Ex-CEO Becomes First Witness In Trial
---------------------------------------------------------
The former chief executive of Tyco International, John F. Fort,
testified Thursday that he never saw misuse of a loan program
intended to help employees pay taxes.

Fort, 61, Tyco's CEO from 1982 to 1992, was the first major
witness in the New York state court fraud trial of his successor,
L. Dennis Kozlowski - who is accused of turning the Key Employee
Loan Program (KELP) into his personal bank account.

After Kozlowski resigned in June 2002 on the eve of being
indicted, Fort ran the Company as interim chief executive for
about two months.

KELP was intended to help employees pay taxes and that while he
was president he never saw the program used for any purpose
except that, Fort answered when he was asked by Assistant
District Attorney Gerard Murphy whether the program was intended
to provide money to buy jewelry, boats and yachts, make personal
investments, or purchase expensive art works.

At the same time, the former CEO also testified that he was
impressed by the management skills of his successor. Kozlowski
performed "very well" in all the jobs he was assigned, and the
conglomerate grew and prospered, Fort said.

But Fort told the jury that Kozlowski lost the support of the
Company's board after the disclosure of a US$20-million payment
to another director.

Fort recalled that Kozlowski telephoned him in January 2002 to
inform him of the payment to Frank E. Walsh, who had helped
broker Tyco's acquisition of the CIT Group.

"I was taken aback by the payment," Fort said, adding, "It made
me think what other things might be happening."

Fort told jurors that the board asked Walsh to return the US$20
million payment at a January 2002 meeting in Boca Raton, Fla.
Walsh refused, and the board hired the lawyer David Boies to get
the money back, Fort said.

Later that month, Tyco publicly disclosed the Walsh payment,
which caused Tyco's stock to drop by 20% in one day.

Walsh, who was forced to resign as a Tyco director in February
2002, eventually pleaded guilty to a felony for hiding the
"finder's fee."

Also being tried on fraud charges in Manhattan's State Supreme
Court is former Tyco chief financial officer, Mark H. Swartz.

Prosecutors contend that Kozlowski and Swartz looted US$600
million from the Company through unauthorized compensation and
sales of inflated stock. Each faces as much as 30 years in prison
if convicted on the charges.



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

ARACRUZ CELULOSE: Announces 3Q03 Results
----------------------------------------
Aracruz Celulose S.A. announced Thursday its consolidated second
quarter 2003 results stated in US dollars, according to US GAAP

Highlights

Aracruz reported an operating income of $87.6 million in the
third quarter compared to $54.8 million in the same period of
last year mainly due to higher sales volume. Net income was $59.3
million in the third quarter of 2003. An average list pulp price
of $503/ton, in the quarter, contributed to an adjusted EBITDA of
$147.7 million, representing a 52% margin. Sales were 610,000
tons and production was 634,000 tons in the quarter.

Global Pulp Market Update

The balance between supply and demand in the pulp markets in the
third quarter was the result of high shipments, mainly to Asia
and Western Europe and well managed supply. Volumes sold were
consumed, keeping stocks in the hands of the paper producers at
low levels.

Pulp prices declined in the beginning of the quarter, as
anticipated. Sales volumes strengthened in July and August. The
stable market situation in the first two months of the quarter
created the opportunity for the implementation of a US$20/ton
increase in September.

It is expected that in the medium term, evidence of an economic
recovery will continue, resulting in stronger growth in paper
demand. This scenario, coupled with low levels of pulp stocks and
limited new capacities in the short term will lead to a positive
pulp market outlook.

Production and Sales

Pulp production totalled a new record of 634,000 tons in the
third quarter of 2003, compared to 467,000 tons in the same
period last year, mainly due to the superior performance of
Fiberline C, which is currently operating beyond its designed
capacity, together with the volumes from the GuaĦba mill
(formerly Riocell). A scheduled maintenance downtime of 10 days
was taken at Fiberline C in August.

Pulp sales reached 610,000 tons in the quarter, compared to
442,000 tons in the same period last year. Sales in July and
August were strong, driven by improved demand in Asia and Europe.
Consequently, Aracruz's inventory experienced some reduction from
the end of June to end of August. In September, higher prices and
higher production resulted in inventories being at 332,000 tons.

Year to date, production was 1,657,000 tons and sales were
1,509,000 tons. Sales to Asia grew following the addition of the
new capacity, according to the Company's strategy to increase
sales to that fast-growing market.

Income Statement - 3Q 2003

Average list pulp price in the quarter was $503/ton, the same as
in the third quarter of last year and lower than $549/ton in the
second quarter of 2003.

Net operating revenues totalled $286.2 million, or $87.6 million
higher than in the same period of 2002.

Net pulp operating revenues during the third quarter of 2003 were
$275.2 million compared to $196.6 million in the same period of
last year, mainly as a result of higher sales volume ($74.7
million).

Total cost of sales was $172.9 million in the third quarter of
2003, compared to $127.2 million in the same period of last year.

Cost of pulp sold in the third quarter was $165.2 million
($271/ton), compared with $124.1 million ($281/ton) in the third
quarter of 2002. Production cost in the quarter was $228/ton,
compared to $231/ton in the same period of last year. Cash
production cost in the quarter was $151/ton, compared to $133/ton
in 3Q02.

Approximately 60% of the Company's cash production cost is
correlated to local currency inflation.

The cash production cost in the third quarter of 2003 from
Aracruz's Barra do Riacho mill (ABR) was $152/ton, while from
Aracruz's GuaĦba mill (AG) it was $147/ton, both mills performing
in a similar way.

Cash production cost at ABR increased from $137/ton in the second
quarter to $152/ton, mainly due to higher wood costs from larger
wood purchases from Veracel, compens ating for lower delivered
wood volumes from the beginning of the year. The wood purchases
from Veracel should be finished by late 2005 and Aracruz expects
its cash costs to decline by approximately 15% from current
levels once it achieves normalized wood supply in 2006. Chemical
costs were also higher due the increased chemical consumption
during the maintenance downtime on Fiberline C in August.

Considering that cash production cost can be affected by
temporary or non-recurring events, such as currency exchange
volatility, wood purchases, facility downtimes, etc., see the
table below in order to find more balanced figures that can be
used for long-term sustainable assessments.

Selling and distribution expenses were $10.7 million, or $3.4
million higher than in the same period of last year, mainly due
to higher sales volume.

Administrative expenses were $6.9 million, or $0.2 million lower
than in the same period of 2002.

Other operating expenses reached $8.0 million, $5.3 million
higher than in the same period of last year, mainly due to a
higher provision of $5.0 million for losses on ICMS credits.

Financial Income in the third quarter of 2003 was $14.7 million,
compared to $12.0 million in the same period of last year. The
difference was mainly due to higher interest rates on local
investments and higher average cash balance.

Financial Expenses were $24.0 million in the third quarter of
2003, compared to $22.5 million in the same period of last year.
The higher amount of "Interest on financing" was mainly due to a
higher average debt balance.

Currency re-measurement resulted in a net gain of $1.1 million in
the third quarter of 2003, compared to a net gain of $24.0
million in the same period of last year, reflecting the lower
volatility of the local currency against the dollar in the
quarter. The closing exchange rate on September 30, 2003 was
R$2.9234 per US dollar.

Income tax and social contribution in the third quarter of 2003
amounted an expense of $20.3 million, compared to a credit of
$28.7 million in the same period last year. The variation was
mainly due to the stabilization of the currency exchange rate in
the quarter versus the devaluation of the local currency in the
same period of last year. No income tax payments were made during
the third quarter of 2003. At the end of the quarter, the tax
credit balance amounted to $27 million, which will offset future
tax charges.

Debt and Cash Structure

Gross debt was $1,378.3 million at the end of September 2003, or
$79.3 million higher than at the end of June 2003.

Debt in local currency corresponds entirely to long-term BNDES
(Brazilian Development Bank) loans.

In August, following the acquisition of Riocell, US$400 million
in secured export notes were issued with a final maturity in
2011. These notes have a 2-year grace period and fixed interest
rate of 7.048% per annum. The goal of the referred issuance was
to improve the Company's debt profile through appropriate long-
term funding to finance the acquisition. The current short-term
debt represents 34% of the total debt, compared to 59% in the
previous quarter. The long-term debt average cost is 6.5% per
annum before tax, according to our estimates.

Cash investments, at the end of the quarter, totalled $344.0
million. Out of the total cash holdings, $288.8 million was
invested in local currency instruments and $55.2 million was
invested abroad, mostly in US dollar time deposits. Part of the
local currency investments were hedged against local currency
volatility through dollar future contracts in the notional
principal of $81.0 million at the end of the period.

Net debt (gross debt less cash holdings) was $1,034.3 million at
the end of the quarter, or $344.5 million higher than at the end
of the second quarter of 2003, mainly due to the $348.9 million
final payment for Riocell on July 2, $40.5 million of Veracel's
capital increase and $40.9 million in capital expenditures,
partially offset by operating cash generation. At the end of the
quarter, the net debt to total capital ratio was 37% and the
interest coverage ratio (based on adjusted EBITDA) was 6.5x.

EBITDA was $139.0 million in the third quarter of 2003, compared
to $100.2 million in the same period of 2002, as a result of
higher sales volume. EBITDA margin was 49%, compared to 51% in
the same period of last year. Third quarter 2003 adjusted EBITDA,
before other non-cash charges, totalled $147.7 million, compared
to $102.6 million in the same period of last year, resulting in
an adjusted margin of 52%.

Stock Performance

From December 31, 2002 to September 30, 2003, Aracruz's ADR price
increased 47%, from $18.56 to $27.30. In the same period, the Dow
Jones Industrial Average Index increased 11% and the S&P Paper
and Forest Index increased 18%.

Results According to Brazilian GAAP

Local currency consolidated result under Brazilian GAAP -
Corporate Law was a net income of R$168.3 million in the quarter.
Aracruz has also publicly released in Brazil its unconsolidated
financial results, which under Brazilian law are the basis for
the calculation of minimum dividends and income taxes. In the
third quarter of 2003 Aracruz Celulose S.A. reported an
unconsolidated net income of R$ 159.7 million and accumulated net
income for 2003 was R$726.9 million.

Additional Information

- Riocell, now Aracruz Guaiba mill
As of September 4, 2003, Riocell has been renamed as the Aracruz
Guaiba mill (AG), and the original Aracruz mill is now being
referred as the Aracruz Barra do Riacho mill (ABR).

A broad study to assess all possible synergies is currently
underway, with the support of McKinsey consulting. The result of
the study, together with the technical evaluation of the
goodwill, will be disclosed upon completion.

- Veracel

Veracel laid the cornerstone for its pulp mill on October 3,
2003. The startup of the mill, which should have a production
capacity of 900,000 tons per year of bleached eucalyptus pulp, is
scheduled for the second half of 2005. All production will be for
export.

The mill is located on a 1.5 million-square-meter plot and will
be the largest single -line pulp production facility of its type
in the world. The project makes use of modern equipment, control
systems and processes to maintain environmental quality.

Because of its location - distant from large urban centers -
Veracel's mill will contribute to the creation of jobs and income
in a region where there currently are few opportunities. During
the construction phase of the project, up to 12,000 direct and
indirect jobs will be generated.

Aracruz Celulose S.A., with operations in the Brazilian states of
EspĦrito Santo, Bahia, Minas Gerais and Rio Grande do Sul, is the
world's largest producer of bleached eucalyptus kraft pulp. All
of the highquality hardwood pulp and lumber supplied by the
company is produced exclusively from planted eucalyptus forests.
The Aracruz pulp is used to manufacture a wide range of consumer
and value-added products, including premium tissue and top
quality printing, writing and specialty papers. The lumber,
produced in a high-tech sawmill located in the extreme -south of
the State of Bahia, is sold under the brand name Lyptus to the
furniture and interior design industries in Brazil and abroad.
Aracruz is listed on the Sao Paulo Stock Exchange (BOVESPA), on
the Latin American Securities Market (Latibex) in Madrid - Spain
and on the New York Stock Exchange under an ADR level III program
(ticker symbol ARA). Each ADR represents 10 underlying class B
preferred shares.

CONTACT:  MaurĦcio Werneck (55-21) 3820-8131
          invest@aracruz.com.br

          Patrick Kilhaney (1-201) 499-3559
          patrick.kilhaney@citigatefi.com


BANCO RURAL: Moody's Assigns B2 to $500M Euro Note Program
----------------------------------------------------------
Rio de Janeiro-based bank, Banco Rural S.A., had its multiple
seniority US$500 million Euro Medium Term Note program rated B2
foreign currency rating by Moody's Investors Service. The ratings
agency said the sub-investment-grade B2 foreign currency rating
is at the country ceiling for Brazil. Banco Rural S.A. had US$1.8
billion in assets as of June 2003.


CEMAR: Moves Closer to Privatization
------------------------------------
The privatization of Brazil's Maranhao state distributor Cemar
piqued the interest of four groups, reports Business News
Americas.

An unnamed source revealed that Minas Gerais state energy company
Cemig, US firm Mastec, and investment groups Investidores ER LLC
and Angra Partners, paid a visit to Cemar's data room.

Groups, such as Brascan Participacoes Financeiras, Docas
Investimentos, GP Capital and Andrade Gutierrez, which were
previously considering the asset, also showed renewed interest.

Brazil's power regulator, Aneel, which intervened in Cemar since
August 2002, after US utility PPL Global agreed to sell the
utility to US investment fund Franklin Park for just US$1, aims
to sell the distributor in December.

Aneel is giving interested parties until October 21 to submit
pre-qualification documents for the company. Companies that make
the grade have until December 1 to bid. Aneel will announce the
winner on December 23, and transfer Cemar to the winner on
December 29.

The winner will have to resolve Cemar's debts with state power
sector holding Eletrobras.

Previous reports have suggested that Cemar owes Eletrobras BRL350
million, and has total debts of BRL800 million.

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/


ENDESA CHILE: Appeals to Court to Reactivate Paralyzed Ops
----------------------------------------------------------
The Spanish group Endesa is now appealing to the Brazilian
Justice to allow it to reactivate the hydroelectric plant
Cachoeira Dourada in the Goias state.

Just recently, Endesa Chile, a unit of the Spanish Endesa,
revealed that the Goias Environmental Agency ordered Cachoeira
Dourada to shut down nine of its 10 turbines, reducing operations
to a capacity of 17 megawatts from 658 megawatts normally. The
agency said the plant lacked environmental permits, required by
law since 1996.

But according to Endesa Chile, it had applied for the permit in
1998 and was still waiting for it to be issued.

A conflict between the Company and Goias government heated up in
April, when the state-owned distributor Celg breach contract with
Cachoeira Dourada.


GERDAU: Issues $100M Worth of One-Year Notes
--------------------------------------------
Brazilian long steelmaker Gerdau sold US$100 million worth of
one-year notes on the US commercial paper market, Business News
Americas reports, citing company CFO Osvaldo Schirmer.

The steelmaker's original plan was to issue only US$50 million of
the paper but demand reached US$300 million, the executive said.
About 60-65% of the investors were European and 35% were from the
US, he added. The paper will pay a coupon of 4% a year and
provide a return of 4.125%.

The issue represents an important tool for improving the
Company's debt profile as the Company will use the proceeds to
cover debt maturing in the short term and pay lower interest
rates.

Gerdau's consolidated net debt at the end of June totaled US$1.85
billion of which US$800 million is short term.

Gerdau is the biggest long steel producer in the Americas with
installed capacity of 14Mt/y, of which its North American unit
Gerdau Ameristeel accounts for 6.8Mt. It operates 23 steel plants
in Brazil, the US, Canada, Argentina, Chile and Uruguay.

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



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

MADECO: To Participate In Quinenco Group Day At The NYSE
--------------------------------------------------------
Madeco S.A. ("Madeco") announced that on October 16, 2003, it
will participate in "Qui¤enco Group Day at the New York Stock
Exchange". The event will feature presentations from several
Qui¤enco group companies, including:

- Qui¤enco S.A. (NYSE: LQ)
  Francisco P‚rez Mackenna, Chief Executive Officer

- Banco de Chile (NYSE: BCH)
  Pablo Granifo, Chief Executive Officer

- CCU S.A. (NYSE: CU)
  Patricio Jottar, Chief Executive Officer

- Madeco S.A. (NYSE: MAD)
  Jorge Tagle, Chief Financial Officer

- Telef˘nica del Sur S.A.

Luis Hern n Pa£l, Member of the Board of Directors of Telef˘nica
del Sur The event, which is by invitation only, will take place
from 12pm to 3pm. Following the event, the presentation will be
available over the internet at www.madeco.cl.

If you have any questions or if you would like an invitation to
the Qui¤enco Group Day event, please direct all inquiries to i-
advize Corporate Communications at (212) 406-3690.

Madeco, formerly Manufacturas de Cobre MADECO S.A., was
incorporated in 1944 as an open stock corporation under the laws
of the Republic of Chile and currently has operations in Chile,
Brazil, Peru and Argentina.

Madeco is a leading Latin American manufacturer of finished and
semi-finished non-ferrous products based on copper, copper alloys
and aluminum. The Company is also a leading manufacturer of
flexible packaging products for use in the packaging of mass
consumer products such as food, snacks and cosmetics.

CONTACT:  Marisol Fernandez
          Investor Relations
          Voice: (56 2) 520-1380
          Fax: (56 2) 520-1545
          E-mail: mfl@madeco.cl
          Web Site : www.madeco.cl


NEXTEL CHILE: Court Rules Against Cellular Telephone Operators
--------------------------------------------------------------
The Chilean Appeals Court finally gave its verdict regarding the
appeals filed by four cellular telephone operators against a
definitive authorization for Nextel Chile to interconnect with
their networks.

Much to the disappointment of the appellants, the court sided
with Nextel Chile, saying that the complaints lodged by the four
operators (Entel PCS, Telefonica Movil, Smartcom PCS and
Bellsouth) against Nextel's plans to provide cellular telephone
services in the country were illegal.

The court further ordered the four operators to pay a CLP1.5-
million fine and to cover the cases' costs.

The four operators now have five days to appeal to the Supreme
Court.

Chile's fixed and cellular telephone services providers were
ordered to give Nextel access to the country's network in April
2003. The fixed line operators have not created any problems to
the Company's plans but the cellular telephone operators have
tried to deny access to Nextel, the analog trunking network
operator, by filing official complaints against the operation.



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

TELECOM: Liquidator To Begin Paying Labor Debt Oct. 15
------------------------------------------------------
The Fiduciaria La Previsora S.A., which has been given the task
of liquidating Telecom, will begin paying off Telecom's debts on
October 15. The debts, according to an El Tiempo report, total
COP167 billion. Telecom has to meet its financial commitments to
its workforce of 3000 within a 90-day period. Its commitment to
the 1,114 employees of related companies have already been paid.

Telecom was liquidated and subsequently replaced by Colombia
Telecomunicaciones, which was formed using Telecom's best assets
and incorporating its subsidiaries and affiliates.



=================
G U A T E M A L A
=================

EXMIBAL: Inco Denies Reports on Reactivation Plans
--------------------------------------------------
Steve Mitchell, spokesperson for Canadian nickel producer Inco,
denied that the Company is planning to restart mining and metal
processing operations in Guatemala, relates Business News
Americas.

"From time to time we evaluate our holdings there and assess the
potential for recommencing operations," Mitchell said, adding:
"Thus far the economics have not been favorable."

Mitchell's comments came amid speculations that the Company is
planning to reactive its local affiliate Exmibal, which halted
operations in 1980 amid high fuel prices and other operating
costs.

North American human rights NGO Rights Action, which opposes
Inco's presence in Guatemala largely on environmental grounds,
says the Company is teaming up with Canadian juniors Geostar
Metals and Chesbar Resources (now Jaguar Nickel) to reactivate
Exmibal activities.

Inco's Guatemalan holdings, which include 1,600ha of land, were
the target of protests this week when communities working in
association with Canadian NGO Environmental Defense protested the
Company's presence in the Central American country.

Environmental Defense says Inco poses an environmental threat to
areas it inhabits.

"Inco has a simple choice," according to a statement from the NGO
on the protests. "It can either continue to be one of the world's
worst mining companies and face increasing opposition, or it can
clean up its act."

Protesters want Inco's Guatemala land cleaned so local residents
can use the territory, Jennifer Foulds, Environmental Defense
spokesperson, told Business News Americas.

In response, Mitchell said the company conducts environmental
assessments of its Guatemala holdings, of which 80% are forested.

"We try to protect that from deforestation," he said.



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

AIR JAMAICA: Concludes Rationalization Program
----------------------------------------------
Air Jamaica now expects to save JMD1 billion a year following its
recently concluded rationalization program, the Jamaica Observer
reports.

The program saw the replacement of four A310s, which have proven
to be less cost-effective than desired, with an A320 and three
A321s, which will cut operating costs by as much as J$1 billion
annually, Christopher Zacca, the airline's deputy chairman,
revealed.

"These aircraft have been leased from the US for two months now,"
Zacca announced at a dedication ceremony at the Norman Manley
International Airport in Kingston. The function, held at the Air
Jamaica hangar, saw two aircraft being named the Spirit of
Mandeville and the Spirit of Spanish Town in keeping with the
airline's policy of naming its planes for Jamaican towns and
cities, says the report.

Air Jamaica is now on the middle ground to recovery after shaving
costs Zacca said, adding that the airline would embark on an
aggressive marketing campaign to capture more business.



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

CSS: Braces For More Strikes
----------------------------
Workers at Panama's state-run social security agency CSS went on
strike early last Tuesday, a prelude to a general strike action
scheduled for October 30.

According to a Business News Americas report, the demonstrations
have been called to protest current working hours and the
autonomy of CSS executives in determining the agency's proposed
US$1.6-billion budget for next year.

The controversial budget proposal calls for certain modifications
in the agency's structure, as well as an increase in the minimum
healthcare contribution from the present US$100 to US$300.

Just recently, the CSS executives were made to appear before the
lower house to explain their move to back the proposed budget and
why they rejected the budget as presented by director Juan
Jovane, who subsequently resigned from his post.

The agency saw its pension deficit increase by US$354mn in the
year to June.



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

BANCO WIESE SUDAMERIS: Government Shifting Debt to Taxpayers
-------------------------------------------------------------
The Peruvian government is introducing measures to prop up the
deteriorating finances of the country's second largest bank Banco
Wiese Sudameris.

One of these measures, according to local daily Expreso, will
drastically leave taxpayers footing the bill to cover debts held
by Banco Wiese as the government is planning on a tax bill
estimated to reach US$314 million in 2006.

Sudameris' financial difficulties stem from the country's
recession in 1999. Its credibility was dealt a blow last year
after parent company, Italian banking giant Intesa, announced it
would sell its Latin American franchise. However, Intesa called
off the planned sale of its Peruvian subsidiary earlier this year
and decided instead to inject US$150 million into the bank.



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

CANTV: This Year's Investment to Close at $80M
----------------------------------------------
CA Nacional Telefonos de Venezuela (CANTV), the country's biggest
telephone company, expects 2003 investments to close at US$80
million, reports Dow Jones Business News.

According to CANTV investor relations and strategic planning
manager Gustavo Antonetti, the expectation, down from US$362
million last year, fall within the Company's initial projections
for this year of US$60-$100 million.

Antonetti said 2003 capital expenses mainly went into
maintenance, back-office computer systems, and the expansion of
national cellular and fixed-line coverage.

"We invested to have full coverage around the country," he said.


PDVSA: May Peg Orimulsion To Heavy Crude Prices
-----------------------------------------------
Venezuela's state oil company PDVSA is planning to increase the
price of orimulsion. Citing energy and mines minister Rafael
RamĦrez, government press agency Venpres indicated the oil
company could peg its price to heavy crude.

Ramirez pointed out that PDVSA sells orimulsion at less than US$4
a barrel plus 1% royalty. The product could be sold with
conventional blends or processed by Venezuela's four heavy crude
upgrade projects and sold at US$17/b, he suggested.

"Clearly damage is being done to the treasury and we have decided
to limit orimulsion production," he said, adding "Venezuela will
respect contracts already signed and companies to which we have
obligations."


PDVSA: Inks JV Accord With Oil India
------------------------------------
PDVSA and Oil India Limited have signed a joint venture
agreement, under which PDVSA will carry out technical studies of
the Baghewala oil field in the state of Rajastan in northwestern
India, reports government news agency Venpres.

PDVSA will help carry out detailed reservoir and geo-scientific
studies for selection of suitable recovery techniques and plant
design. The report expects PDVSA to complete the technical
studies by the end of the year. Subsequently, a development plan
will be ready by May 2004, after which exploration drilling could
begin, says the report.

If the exploration stage is successful, the companies could
create an independent company with a budget of US$2 billion to
develop the 400km area for 20 years.



               ***********


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
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and Beard Group, Inc., Washington, DC. John D. Resnick, Edem
Psamathe P. Alfeche and Oona G. Oyangoren, Editors.

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

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