TCRLA_Public/031030.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Thursday, October 30, 2003, Vol. 4, Issue 215

                          Headlines


A R G E N T I N A

BANCO RIO: IFC $70M Trade Finance Facility to Provide Liquidity
CASA BORGES: Receiver Prepares Individual Reports For Bankruptcy
CONFORT ESTILO: Receiver Completes Credit Verifications
CRAR: Court Orders Bankruptcy
DAGER: Court Approves Bankruptcy Petition

DIRECTV LA: Moves Again To Extend Exclusive Filing Periods
ESTABLICIMIENTO METALURGICO: Court Orders Bankruptcy
GOTICA Y COMPANIA: Reorganization Disolves to Bankruptcy
GS VIAL: Claims Verification Wraps Up Today
LAMINADOS LAMDECO: Receiver Verifies Claims in Bankruptcy

LOCKBIT: Court Sets Schedule for Bankruptcy Process
MULTICANAL: Extends APE Solicitation, Cash Option Solicitation
NEO COMUNICACIONES: Court Orders Bankruptcy
OPEN SPORTS BUSINESS: Court Orders Bankruptcy
PINTURERIA PROFESIONAL: Official Reorganization Starts

PROYECTOS E INSTALACIONES: Proofs of Claims Ends Today
PRO SUN: Court Orders Bankruptcy
PUBLICIDAD DINAMICA: Court Designates Receiver for Bankruptcy
ROYAL AHOLD: 3Q03 Sales Up Slightly; Near Term Convoluted


B E R M U D A

LORAL SPACE: Intelsat to Issue Notes To Finance Asset Purchase


B R A Z I L

EMBRATEL: Evaluating Acquisition Targets
SABESP: Local Currency Rating Outlook Improves to Stable
TCP: Analysts Project Narrower 3Q03 Net Loss


C H I L E

COEUR D' ALENE: Announces Final Redemption of 6 3/8% Debentures
COEUR D'ALENE: Cash Resources Sufficient to Meet Current Needs


J A M A I C A

JPSCO: Senator Seeks Generating Capacity Details


M E X I C O

GRUPO SIMEC: First Three Quarters 2003 Show Improved Results
GRUPO TMM: Reports Improvement in 3Q03, 9-Months 2003
TFM: Reports Consolidated 3Q03, YTD Results Through September


P A N A M A

CSS: Reports $25M Loss for 1H03


V E N E Z U E L A

PDVSA: CITGO Clarifies Recent Income Statements Reports


     - - - - - - - - - -


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

BANCO RIO: IFC $70M Trade Finance Facility to Provide Liquidity
---------------------------------------------------------------
The International Finance Corporation (IFC), the private sector
development arm of the World Bank Group, has approved an
investment of up to $70 million in a structured trade finance
facility arranged by Banco Rio de la Plata S.A. The transaction
will make pre-shipment export financing available to Argentine
exporters.

The IFC facility will consist of an A Loan of up to $20 million
with a tenor of up to 2 years, as well as a syndicated 1-year
credit of up to $50 million from international commercial
lenders. The maturities of the facility's A and B Loans represent
a significant extension of funding tenors, in comparison with
those currently available to the majority of Argentine exporters
from other trade finance sources.

The project demonstrates that successful financial restructuring
by an Argentine corporate entity can result in renewed access by
that borrower to international funding, and re-introduction of
its name in the global financial markets.

Declan Duff, IFC's Director of Global Financial Markets noted:
"The project represents the first international syndication
undertaken by an Argentine bank, which has successfully
restructured its foreign debt obligations since the onset of the
Argentine crisis. And Banco Rio has done so with the financial
backing of its parent, Grupo Santander."

Banco Rio was also chosen for the effort because the bank has
traditionally had a well-developed business franchise among
smaller corporates. This continues to be the case today, making
it more likely that trade finance resources provided by the
project will be made available to second-tier exporters.

Banco Rio is the second largest private bank in Argentina, and a
subsidiary of Grupo Santander. It provides a wide range of
commercial banking, investment, and financial services to over
1,000,000 clients, including large, medium and small companies,
as well as individuals. The bank has a network of approximately
205 branches as well as 129 points of sale, and employs 3,500
personnel.

IFC has provided support to Argentina since the onset of its
crisis in late 2001 by - amongst other things - arranging funding
for exporters. The Corporation's focus on the export sector -
both directly, by lending to companies, and now indirectly, by
arranging funding for financial intermediaries - is a response to
cutbacks in conventional trade finance for Argentine corporates.
As a result of these cutbacks, aside from 10-15 top-tier
exporters who now have reasonable access to trade finance, most
Argentine companies face difficulties in obtaining export credits
of any sort, and especially pre-shipment export funding.

Bernard Pasquier, IFC's Director for Latin America and the
Caribbean, noted: "This transaction comes at a crucial time to
support one of the main drivers of the Argentine economic
recovery, the export sector. It underscores IFC's long-term
commitment to assist the Argentine corporate and financial
sectors at a time when foreign credits are very scarce, and the
domestic banking system has not yet recovered from the crisis in
late 2001."

In fiscal year 2003, IFC committed $1.8 billion to 54 projects in
16 countries of the Latin America and Caribbean Region. This was
an increase of $706 million from investment commitments made to
the Region during fiscal year 2002, and the largest amount
committed by IFC to Latin America and the Caribbean in recent
years. The total IFC financing amount also included $918 million
mobilized from banks participating in IFC syndicated loans. IFC's
financing to the region accounted for almost half of IFC's global
funding to clients in fiscal year 2003, the latter of which
totaled $5.0 billion.

IFC's mission (www.ifc.org) is to promote sustainable private
sector investment in developing countries, helping to reduce
poverty and improve people's lives. IFC finances private sector
investments in the developing world, mobilizes capital in the
international financial markets, helps clients improve social and
environmental sustainability, and provides technical assistance
and advice to governments and businesses. Since its founding in
1956, IFC has committed more than $37 billion of its own funds
and has arranged $22 billion in syndications for 2,990 companies
in 140 developing countries. IFC's committed portfolio at the end
of FY03 was $16.7 billion with an additional $6.6 billion held
for participants in loan syndications.

CONTACT:  Adriana Gomez
          Phone: (202) 458-5204
          Fax: (202) 974-4384
          E-mail: agomez@ifc.org

          IFC Global Financial Markets
          Xavier Jordan / Matias Eliaschev
          Phone: (202) 458-9640 / (202) 473-1418
          Fax: (202) 974-4801 / (202) 974-4384
          E-mail: xjordan@ifc.org
                  meliaschev@ifc.org


CASA BORGES: Receiver Prepares Individual Reports For Bankruptcy
----------------------------------------------------------------
The bankruptcy Casa Borges S.A. proceeds with the end of the
credit verification process today. The receiver, Mr. Juan Carlos
Guaita, who validated the claims, will prepare the individual
reports, which must be submitted to the court on December 12.

The receiver will prepare the general report after the individual
reports are processed at court. This report must be submitted on
February 13 next year.

The Troubled Company Reporter - Latin America earlier indicated
that Buenos Aires' Court No. 26 issued the bankruptcy order.
Clerk No. 51 works with the court on the case.

CONTACT:  Casa Borges S.R.L.
          Presidente Peron 1492
          Buenos Aires

          Juan Carlos Guaita
          Ave de Mayo 749
          Buenos Aires


CONFORT ESTILO: Receiver Completes Credit Verifications
-------------------------------------------------------
Mr. Luis Guevara, receiver for Confort Estilo S.R.L. closes the
verification process for the Company's reorganization process
today. He will now prepare the individual reports on the results
of the verifications.

Buenos Aires Court No. 1, which handles the Company's case
requires these reports to be filed on December 12. The receiver
will also prepare a general report, which is due on February 25,
2004, after the individual reports are processed at court.

The informative assembly will be held on August 12 next year.

CONTACT:  Luis Guevara
          Ayacucho 242
          Buenos Aires


CRAR: Court Orders Bankruptcy
-----------------------------
Buenos Aires court No. 1 rules that local company Crar S.R.L. is
"Queibra Decretada", reports Argentine news portal Infobae. Clerk
No. 1 aids the court on the case.

Mr. Daniel Macri, a local accountant, was assigned as the
Company's receiver. He will authenticate creditors' claims until
December 15 this year. He is also required to prepare the
individual and general reports, whose deadlines were not revealed
by the report.

CONTACT:  Daniel Macri
          Simbron 5742
          Buenos Aires


DAGER: Court Approves Bankruptcy Petition
-----------------------------------------
Insolvency judge Ferrario of Buenos Aires' Court No. 6 approves
the petition for the bankruptcy of Dager S.R.L., reports
Argentine newspaper La Nacion. The Company's creditor filed the
bankruptcy petition for nonpayment of debt.

With assistance from Clerk No. 11, Dr. Piatti, the court assigned
Mr. Roberto Boffa as the Company's receiver. Credit verifications
run until February 5 next year.

The receiver is required to prepare the individual and general
reports on the process. La Nacion, however, did not mention
whether the court has set the deadlines for these reports.

CONTACT:  Dager S.R.L.
          Moron 3065
          Buenos Aires


DIRECTV LA: Moves Again To Extend Exclusive Filing Periods
----------------------------------------------------------
Joel A. Waite, Esq., at Young Conaway Stargatt & Taylor LLP, in
Wilmington, Delaware, relates that the Debtor, the Creditors'
Committee and Hughes Electronics Corporation continue to engage
in negotiations with respect to the terms of a consensual plan of
reorganization.  The parties agree that it would be productive to
the plan formulation process and the Chapter 11 Case generally to
further extend the Exclusive Periods.

Thus, DirecTV, Committee and Hughes ask the Court to extend
the Exclusive Proposal Period to November 12, 2003 and the
Exclusive Solicitation Period to January 12, 2004.

The Court will convene a hearing on November 12, 2003 to
consider the Debtor's request.  By application of Del.Bankr.LR
9006-2, the Debtor's exclusive filing period is automatically
extended through the conclusion of that hearing. (DirecTV Latin
America Bankruptcy News, Issue No. 14; Bankruptcy Creditors'
Service, Inc., 609/392-0900)


ESTABLICIMIENTO METALURGICO: Court Orders Bankruptcy
----------------------------------------------------
Establecimiento Metalurgico Weber S.R.L., which is domiciled in
Buenos Aires, enters bankruptcy on orders from the city's Court
No. 10. Without revealing the reasons behind the ruling, Infobae
reports that the court declared the Company "Quiebra".

The receiver, Mr. Eduardo Hector Vasini, will prepare the
individual reports after the credit verification process is
completed on November 28 this year. These reports are to be
submitted to the court on February 16 next year.

The receiver will also prepare a general report, which is to be
filed at the court on March 29, 2004. The Company's assets will
then be liquidated to reimburse its creditors.

CONTACT:  Eduardo Hector Vasini
          Rivadavia 4783
          Buenos Aires


GOTICA Y COMPANIA: Reorganization Disolves to Bankruptcy
--------------------------------------------------------
Gotica y Compania S.R.L., which was undergoing reorganization,
enters bankruptcy, relates Argentine news source Infobae. The
Company is currently handled by its receiver, Ms. Mabel Vargas de
Gallardo, an accountant from Salta, where the Company is based.

Court No. 1 of the province's Civil and Commercial Tribunal
issued the bankruptcy order. The court instructed the receiver
that claims verifications will be done "por via incidental".

The receiver's duties include the preparation of the individual
and general reports. However, the source did not mention the
deadlines for these reports.

CONTACT:  Gotica Compania S.R.L.
          Pueyrredon 1072
          Salta

          Mabel Vargas de Gallardo
          Diego Barcelo 44
          Ciudad del Milagro, Salta

   
GS VIAL: Claims Verification Wraps Up Today
-------------------------------------------
Buenos Aires accountant Ms. Ines Etelvina Clos ends the
verification process for the bankruptcy of local company GS Vial
S.A. today. The Troubled Company Reporter - Latin America earlier
revealed that the city's Court No. 43 ruled that the Company is
"Quiebra Decretada".

The receiver will prepare the individual reports on the results
of the verification process. She is also required to prepare the
general report. Local sources, however, did not reveal the
deadlines for the submission of these reports.

It is expected that the Company's assets will be liquidated at
the end of the process. Proceeds will be used to pay its
creditors, who have valid claims.

CONTACT:  Ines Etelvina Clos
          Lavalle 715
          Buenos Aires


LAMINADOS LAMDECO: Receiver Verifies Claims in Bankruptcy
---------------------------------------------------------
Creditors for Buenos Aires company Laminados Lamdeco S.A. must
have their claims authenticated by the receiver by December 29
this year. Infobae relates that Mr. Jose Maria Nullo acts as the
Company's receiver for the bankruptcy proceedings.

The verifications are done to determine the nature and amount of
the Company's debts. The receiver will prepare the individual
reports, which must be submitted to the court on February 27 next
year, after the verifications are closed.

The city's Court No. 17, which handles the Company's case,
requires the receiver to file the general report on March 26,
2003. Clerk No. 33 works with the court on the case.

CONTACT:  Laminados Lamdeco S.A.
          Moldes 2181
          Buenos Aires

          Jose Maria Nullo
          Avenida Callao 420
          Buenos Aires


LOCKBIT: Court Sets Schedule for Bankruptcy Process
---------------------------------------------------
Buenos Aires' Court No. 6, which handles the bankruptcy of local
company Lockbit S.A., has set the schedule for the Company's
bankruptcy process. Argentine news portal Infobae reports that
the individual reports are due for submission on February 26 next
year.

The Company's receiver, Mr. Juan Carlos Vilalonga, will prepare
the individual reports after the credit verifications will be
closed on December 12 this year. He will also prepare the general
report, which must be filed on April 13 next year, after the
individual reports are processed at the court.

An earlier report by the Troubled Company Reporter - Latin
America revealed that the Argentine beverage company was declared
bankrupt by
Judge del Ferrario, who handles the Company's case with
assistance from Clerk No. 12, Dr. Mendez Sarmiento. The
bankruptcy order came after the Company's creditor, Vinares S.A.
sough for its bankruptcy for non-payment of debt.

CONTACT:  Lockbit S.A.
          10th Floor, Room B
          Adolfo Asinas 1433
          Buenos Aires

          Juan Vilanova
          6th floor, Room B
          Hipolito Yrigoyen 1249
          Buenos Aires


MULTICANAL: Extends APE Solicitation, Cash Option Solicitation
--------------------------------------------------------------
Multicanal S.A. (the "Company") announced that it is extending
until 5:00 p.m., New York City time, on December 12, 2003, unless
further extended by the Company in its sole discretion, its
solicitation (the "APE Solicitation") from holders of its 9 1/4%
Notes due 2002, 10 1/2% Notes due 2007, 13.125% Series E Notes
due 2009, Series C 10 1/2% Notes due 2018 and Series J Floating
Rate Notes due 2003 (together, the "Existing Notes"), and other
financial indebtedness (the "Bank Debt" and together with the
Existing Notes, the "Existing Debt") of powers of attorney in
favor of an attorney- in- fact, to execute an acuerdo preventivo
extrajudicial (the "APE").

The Company also announced that it is extending until 5:00 p.m.,
New York City time, on December 12, 2003, unless further extended
by the Company in its sole discretion, its offer to purchase for
cash (the "Cash Option Solicitation") not more than U.S.$131
million of its Existing Debt at a price of U.S.$300 per
U.S.$1,000 aggregate principal amount of Existing Debt tendered
for purchase.

As of 5:00 p.m., New York City time, on October 1, 2003, holders
(including certain holders who may not have submitted complete
documentation) of approximately U.S.$279.2 million or
approximately 53% principal amount of Existing Debt in the
aggregate have either tendered in the Cash Option Solicitation or
agreed to participate in the APE Solicitation.

A holder of Existing Debt that has tendered in either the Cash
Option Solicitation or the APE Solicitation prior to the date
hereof or that elects to participate in the APE Solicitation or
the Cash Option Solicitation after the date hereof will not be
entitled to withdraw its power of attorney and tenders.

The Information Agent for both the Cash Option Solicitation and
the APE Solicitation is D.F. King & Co., Inc. and its telephone
number is (212) 493-6920. The Depositary for the Cash Option
Solicitation and the Exchange Agent for the APE Solicitation is
JPMorgan Chase Bank and its telephone number is (212) 623-5162.

This extension notice is dated as of October 2, 2003.


NEO COMUNICACIONES: Court Orders Bankruptcy
-------------------------------------------
Neo Comunicaciones Publicitarias S.R.L. enters bankruptcy on
orders from Buenos Aires Court No. 8. The city's Clerk No. 16
assists the court on the case. A local accountant, Mr. Felipe
Florio, was assigned as the Company's receiver. Argentine news
source Infobae indicates that the receiver will validate
creditors' claims until December 29 this year.

The receiver will prepare the individual reports on completion of
the verification process. These reports are to be submitted to
the court on March 11 next year, followed by the general report
on April 27.

At the end of the bankruptcy process, the Company's assets will
be liquidated to reimburse its creditors. Payments will be based
on the results of the credit verification process, where the
amount and nature of the Company's debts are determined.

CONTACT:  Neo Comucaciones Publicitarias S.R.L.
          Ave Rivadavia 1157
          Buenos Aires


OPEN SPORTS BUSINESS: Court Orders Bankruptcy
---------------------------------------------
Argentine news portal Infobae reports that Buenos Aires' Court
No. 13 declares local company Open Sports Business S.A.
"Quiebra". Working with Clerk No. 25, the court assigned Mr. Date
Giampaolo as the Company's receiver.

Creditors must have their claims verified by the receiver on
December 9 this year, after which the receiver will prepare the
individual reports. The receiver will also prepare a general
report after the individual reports are processed at court. The
source, however, did not reveal whether the deadlines for the
submission of these reports have been set.

CONTACT:  Dante Giampaolo
          Anchorena 672
          Buenos Aires


PINTURERIA PROFESIONAL: Official Reorganization Starts
------------------------------------------------------
Pintureria Profesional Marcos S.R.L., which was undergoing the
bankruptcy process, will reorganize. A report by Argentine news
source Infobae indicates that the Company's receiver, Mr. Raul
Brener, will verify creditors' claims until December 18 this
year.

The individual reports on the results of the verifications must
be submitted to the court on February 25 next year. After these
are processed at court, the receiver will summarize the results
in a general report, which must be submitted to the court on
April 23 next year.

Court No. 25, which handles the Company's case ordered the
informative assembly to be held on October 6 next year. Clerk No.
49 aids the court on the case.

CONTACT:  Raul Brener
          Lambare 1140
          Buenos Aires


PROYECTOS E INSTALACIONES: Proofs of Claims Ends Today
------------------------------------------------------
The credit verification period for the reorganization of
Proyectos e Instalaciones Andisa S.A., ends today, October 30.
The Company's receiver will prepare the individual reports.

An earlier report by the Troubled Company Reporter - Latin
America revealed that Judge Villanueva of Buenos Aires Court No.
23 approved the Company's motion for "Concurso Preventivo". Clerk
No. 46, Dr. Timpanelli works with the court on the case.

Documents submitted to the court revealed that, the Company,
which is involved in the construction of electrical systems,
stopped making debt payments on October 30, 2001.

CONTACT:  Proyectos e Instalaciones Andisa S.A.
          8th Floor, Room B
          Alsina 1433
          Buenos Aires


PRO SUN: Court Orders Bankruptcy
--------------------------------
Pro Sun S.A., which is domiciled in Buenos Aires, enters
bankruptcy on orders from the city's Court No. 4, relates
Argentine news portal Infobae. Clerk No. 8 aids the court on the
case.

The court assigned Mr. Gonzalo Daniel Cueva, a local accountant,
as the Company's receiver. He will verify creditors' claims until
December 5 this year. The receiver is also required to prepare
the individual and general reports. Infobae, however, did not
reveal whether the court has set the deadlines for the filing of
these reports.

CONTACT:  Gonzalo Daniel Cueva
          Terrero 1752
          Buenos Aires


PUBLICIDAD DINAMICA: Court Designates Receiver for Bankruptcy
-------------------------------------------------------------
Court No. 9 of Buenos Aires assigns Mr. Silvio Gustavo Gobracz as
receiver for local company Publicidad Dinamica S.A., which is
undergoing the bankruptcy process. A report by Infobae indicates
that Clerk No. 17 aids the court on the case.

The credit verification period ends on December 22 this year.
This part of the bankruptcy process determines the amount and
nature of the Company's debts. The results of this process will
also be used as basis for payments at the end of the process,
when the Company's assets are liquidated.

The receiver will prepare the individual reports after the said
date and submit these to the court on March 12 next year. The
general report, which is a summary of the individual reports
after processing at court, should follow on May 5, 2004.

CONTACT:  Silvio Gustavo Gobracz
          Tucuman 1484
          Buenos Aires


ROYAL AHOLD: 3Q03 Sales Up Slightly; Near Term Convoluted
---------------------------------------------------------
- Consolidated 3Q 2003 sales amounted to Euro 13.0 billion, a
decline of 7.1% compared to the same period last year

- Sales are significantly impacted by the lower currency exchange
rates of in particular the US Dollar; sales excluding currency
impact increased by 2.7%

- Persistent weak global economy and fierce competition impact
sales

- Operating income 2003 expected to be impacted by margin
squeeze, particularly at U.S. Foodservice

- Professional fees of advisors in 2003 in excess of Euro 100
million

Ahold announced Tuesday consolidated net sales for the third
quarter of the year (12 weeks through October 5, 2003) of Euro
13.0 billion, a decline of 7.1% compared to Euro 14.0 billion
generated in the 2002 third quarter. Sales are significantly
impacted by the lower currency exchange rates of in particular
the U.S. Dollar; sales excluding currency impact increased by
2.7%. The overall impact of acquisitions and divestments on net
sales growth in the third quarter was not material. The sales
numbers presented in this press release are preliminary and
unaudited.

USA - RETAIL
In the United States, net sales of USA retail in USD increased by
3.3% to USD 6.2 billion (2002: USD 6.0 billion). Comparable sales
increased by 1.1% and identical sales increased by 0.3%.

EUROPE - RETAIL
In Europe sales rose 0.3% to Euro 3.0 billion (2002: Euro 3.0
billion). Lower sales at Albert Heijn were offset by sales growth
at Schuitema, Central Europe and Spain.

FOODSERVICE
Net sales at U.S. Foodservice increased by 5.9% to USD 4.3
billion (2002: USD 4.0 billion), partially achieved by low margin
business. The acquisition of Allen Foods and Lady Baltimore in
December and September of 2002, respectively, contributed
approximately 2% to the sales growth.

SOUTH AMERICA
In South America sales amounted to Euro 511 million (2002: Euro
586 million), down 12.8% compared to last year caused by the
disposal of Santa Isabel Chile in July of 2003.

ASIA
In Asia sales declined 28% to Euro 78 million (2002: Euro 109
million) due to the sale of most of the assets of Ahold Malaysia
and Ahold Indonesia in the course of the third quarter of 2003.

OUTLOOK 2003
Ahold expects operating income for full-year 2003 to be impacted
by continued pressure on margins, primarily at U.S. Foodservice.
Ahold also expects professional fees of lawyers, accountants and
other advisors to be in excess of Euro 100 million in 2003.

DEFINITIONS

- Identical sales compare sales from exactly the? same stores.

- Comparable sales are identical sales plus sales from?
replacement stores.

- Currency impact: the impact of using different? exchange rates
to translate the financial figures of our subsidiaries to Euros.
The financial figures of the previous year are restated using the
actual exchange rates in order to eliminate this currency impact.



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B E R M U D A
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LORAL SPACE: Intelsat to Issue Notes To Finance Asset Purchase
--------------------------------------------------------------
Intelsat, Ltd. announced Tuesday its intent to issue and sell
$900 million aggregate principal amount of its Senior Notes in a
private placement under Rule 144A and Regulation D in the United
States and in accordance with Regulation S outside of the United
States.

The Senior Notes will be senior unsecured obligations of
Intelsat, Ltd. and will rank equally with its other senior
unsecured indebtedness.

It is intended that the net proceeds from the issuance and sale
will be used to finance the proposed purchase of the North
American satellite assets of Loral Space & Communications
Corporation and certain of its affiliates and for general
corporate purposes.

The notes will not be registered under the Securities Act of
1933, as amended, and may not be offered or sold in the United
States unless they are registered or unless such sale is exempt
from the registration requirements of the Securities Act.



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B R A Z I L
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EMBRATEL: Evaluating Acquisition Targets
----------------------------------------
Embratel Participacoes SA, Brazil's biggest long-distance
telephone company, is still interested in making acquisitions
despite losing out in the bidding for bankrupt operator AT&T
Latin America (ATTL).

Embratel, controlled by WorldCom Inc., is evaluating
opportunities in Argentina, Chile and Colombia, Chief Executive
Jorge Rodriguez said, without revealing the names of the
companies Embratel may be interested in.

Speaking at the Futurecom conference in Florianopolis, Rodriguez
highlighted those three countries as the main focus for the
Company's international expansion.

Meanwhile, Embratel chairman Dan Crawford announced that Embratel
has submitted documents on the purchase of Brazilian start-up
local loop operator Vesper to the government authorities, and the
Company aims to wrap up the deal once those approvals come
through.

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

CONTACT:  Silvia M.R. Pereira, Investor Relations
          Phone: (55 21) 2121-9662
          Fax: (55 21) 2121-6388
          Email: silvia.pereira@embratel.com.br
                 invest@embratel.com.br


SABESP: Local Currency Rating Outlook Improves to Stable
--------------------------------------------------------
Standard & Poor's Ratings Services revised Tuesday its outlook on
its 'BB-' local currency rating on Companhia de Saneamento Basico
do Estado de Sao Paulo - Sabesp to stable from negative. At the
same time, Standard & Poor's affirmed its 'B+' foreign currency
and 'BB-'  local currency corporate credit ratings on Sabesp. The
outlook on the company's foreign currency rating is still stable.

The outlook assigned to Sabesp in the Brazil national scale was
also revised to stable from negative and its 'brA' was affirmed.

"This action reflects the successful renegotiation of Sabesp's
large debt maturities during 2003 when Brazilian corporates were
still in an unfavorable credit environment," said Standard &
Poor's credit analyst Juliana Gallo. The company refinanced R$367
million and R$400 million debentures put options in March and
October, respectively, and issued US$225 million senior unsecured
notes to deal with a US$200 million Eurobond, which matured in
July.

The ratings on Sabesp incorporate the following risks: risks of
operating in the volatile economic environment; lack of defined
regulatory framework for the water utility sector, reducing
predictability; high amount of debt and significant refinancing
needs for the next years; and challenge to reduce overdue
customer receivables. These risks are partially offset by the
company's strategic importance as a regional provider of water
and wastewater service in the state of Sao Paulo; virtual
monopoly for service, covering a large territory; capacity to
progress in the capital program that expanded wastewater
collection and treatment capability throughout the system; and
strong cash generation.

The stable outlook reflects the company's capacity to refinance
its significant maturities in a negative credit environment for
Brazilian companies, as well as Standard & Poor's expectation
that Sabesp will maintain a moderate financial policy and that it
will have the ability to fund much of its capital program
internally.

ANALYSTS: Juliana Gallo, Sao Paulo (55) 11-5501-8948
          Milena Zaniboni, Sao Paulo (55) 11-5501-8945
          Juliana Gallo, Sao Paulo (55) 11-5501-8948
          Milena Zaniboni, Sao Paulo (55) 11-5501-8945


TCP: Analysts Project Narrower 3Q03 Net Loss
--------------------------------------------
Analysts expect Telesp Celular Participacoes SA (TCP), the
biggest unit of Vivo, Brazil's largest mobile-phone company, to
report a much lesser net loss in the third quarter compared to
the BRL92.1-million net loss in the same quarter last year.

According to the median of estimate of nine analysts surveyed by
Bloomberg, the Company, which is controlled by Portugal Telecom
SGPS SA and Telefonica Moviles SA of Spain's Vivo venture, will
report a net loss of BRL7 million ($2.44 million) for the third
quarter this year.

A lower net loss is expected to come as the Company signed up new
customers and cut the cost of making payments on debt.

The Sao Paulo-based company has hedging contracts covering all
its debt, which is two-thirds denominated in foreign currencies
and reached BRL5.47 billion at the end of June. A 6 percentage-
point reduction in Brazil's benchmark interest rate in the third
quarter coupled with a 29 percent strengthening of the real
against the dollar since the end of the third quarter a year ago
helped reduce financing costs, analysts such as Roberta Kosaka of
Banco Brascan said.

"Interest rates have come down considerably the past months,
which will reduce the financing expenses for Telesp Celular's
debt," said Kosaka, a telecommunications analyst in Sao Paulo.
"Naturally, the results are expected to come better."



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

COEUR D' ALENE: Announces Final Redemption of 6 3/8% Debentures
---------------------------------------------------------------
Coeur d'Alene Mines Corporation, the world's largest primary
silver producer, announced Tuesday the redemption of the
remaining outstanding $4.9 million principal amount of the
Company's 6 3/8% Convertible Subordinated Debentures due January
31, 2004. The final redemption date is set for November 28, 2003.

Under terms of the indenture, the debentures are redeemable at
the option of the Company in whole or part at 100% of the
principal amount for cash, plus accrued interest to the
redemption date. Notice of redemption will be mailed at least 30
days, but not more than 60 days, before the redemption date to
each holder of debentures. From and after the redemption date,
interest will cease to accrue on the debentures. The debentures
may be converted into shares of the Company's common stock at any
time before the close of business on November 26, 2003 in
accordance with the terms and conditions of the indenture
governing the debentures.

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.


COEUR D'ALENE: Cash Resources Sufficient to Meet Current Needs
--------------------------------------------------------------
Coeur d'Alene Mines' Cerro Bayo property, located in Southern
Chile, produced 1.2 million ounces of silver and 15,200 ounces of
gold during the third quarter of 2003. Total cash costs for the
latest three-month period was $1.18 per ounce compared to $0.91
in the third quarter of 2003, according to a report in Frederick,
Maryland's SunStream News.

Exploration at Cerro Bayo during the third quarter focused on
reserve/resource delineation drilling of the Javiera, Wendy,
Tranque Norte and Veronica veins. General reconnaissance
exploration was also carried out on Coeur's properties in the
Santa Cruz Province of Argentina. Results obtained from drilling
adjacent to the R-4 Zone on the Martha mine property and on the
Malbec property located 10 miles north of the Martha mine have
indicated the presence of mineralized zones.

Production at Mina Martha progressed as planned. During the
quarter, ore was mined from the open pit and underground
workings. Open pit mining was completed during the third quarter
of 2003. Current exploration is delineating both shallow, open
pit reserves and a southeast extension of the R-4 Zone. A new
geological model is being prepared for R-4 with this new
information.

Coeur's Rochester mine, located in Nevada, produced 1.7 million
ounces of silver and 15,300 ounces of gold, during the third
quarter of 2003 compared to 1.7 million ounces of silver and
18,900 ounces of gold in the third quarter of the prior year.
Cash costs for the latest three-month period increased to $3.66
per ounce as compared to $2.83 in the third quarter of 2002. The
lower gold production and increased per ounce cash cost of
production in the third quarter of 2003 as compared to the third
quarter of 2002 were the result of the placement of lower grade
ore on the leach pad, construction activities associated with the
crusher relocation project, construction of a new off-pad haul
road and ongoing reclamation activities. As a result, pit ore to
the crusher was replaced with low-grade ore, which ultimately
reduced ounce production. With all non-production related
activities complete, pit production will resume as planned and
ounce production is expected to increase and per ounce operating
costs are expected to decrease over the next several quarters.

In the third quarter of 2003, silver production from Coeur Silver
Valley in Idaho, was 0.4 million ounces, down 0.8 million ounces
from the 1.2 million ounces produced in the third quarter of
2002. Total cash costs for the current quarter increased to $5.46
per ounce compared to $4.54 per ounce in the third quarter of the
prior year. The decrease in production and the increase in per
ounce cash costs is the result of the temporary suspension of
operations during the third quarter as maintenance work on the
mine's hoist was completed to prepare the mine for future
operations pursuant to a long-term development plan. Measures
have been taken to address these short-term issues and to develop
an operational base for future productivity improvements.
Exploration drilling of targets from the 5200 level are planned
during the remainder of 2003.

The final feasibility study at the San Bartolome silver project
near Potosi, Bolivia is scheduled for completion near the end of
the first quarter of 2004. The Company recently completed an
independent ore reserves report for the San Bartolome project. As
a result, the previously reported mineralized material containing
40.3 million tons of ore with an average grade of 3.14 per ton
has been reclassified to proven and probable ore reserves of 35.3
million tons with an average grade of 3.48 ounces of silver per
ton resulting in 123 million ounces of contained silver.

Sales of metal in the nine months ended September 30, 2003 were
$78.1 million, an increase of $17.7 million, or 29%, from the
same period of 2002 of $60.5 million. The increase in product
sales of metal is attributable to increased production of silver
and gold which accounted for $13.8 million, or 78%, of the
increase, and higher realized gold prices which accounted for
$3.8 million, or 22%, of the increase.

In the nine months ended September 30, 2003, the Company produced
a total of 10.7 million ounces of silver and 93,400 ounces of
gold, compared to 10.0 million ounces of silver and 73,400 ounces
of gold in the nine months ended September 30, 2002. In the nine
months ended September 30, 2003, the Company sold 10.9 million
ounces of silver and 97,300 ounces of gold compared to 9.6
million ounces of silver and 66,000 ounces of gold for the same
period in 2002. The increase in silver and gold production is the
result of the start-up of operations at the Cerro Bayo and Martha
mines in the second quarter of 2002, which accounted for 3.8
million ounces of silver production and 52,200 ounces of gold
production during the first nine months of 2003. Realized silver
and gold prices were $4.71 and $341 per ounce, respectively, in
the nine months ended September 30, 2003 compared to $4.67 and
$306 in the comparable period of 2002.

Interest and other income in the nine months ended September 30,
2003 decreased by $4.1 million compared with the same period of
2002. The decrease was primarily due to a gain on the sale of the
Petorca mine of $1.3 million, $1.5 million from a business
interruption claim at the Galena mine, $1.0 million from sales of
investments and $0.7 million of timber sales at the Galena mine,
partially offset by $0.6 million in foreign exchange variations
in the second quarter of 2002.

Production costs in the nine months ended September 30, 2003
decreased by $3.2 million, or 5%, from the nine months ended
September 30, 2002 to $55.7 million. The decrease is the result
of reduced production costs at the Rochester and Silver Valley
mines of $12.1 million and $3.4 million, respectively, offset in
part by increased production costs at the Cerro Bayo mine of
$12.3 million.

Depreciation and amortization increased in the nine months ended
September 30, 2003 by $4.8 million, from the prior year's
comparable period, primarily due to increased depletion recorded
at the Cerro Bayo mine in conjunction with commencement of
commercial production at the mine.

Administrative and general expenses increased in the nine months
ended September 30, 2003 compared to the same period in 2002 by
$2.5 million due to increased financing activities associated
with the Company's ongoing financial restructuring, which was
completed in the third quarter of 2003.

Exploration expenses increased by $1.0 million in the nine months
ended September 30, 2003 compared to the same period in 2002 as a
result of the Company's expanded exploration activities in the
Cerro Bayo/Martha mine property areas.

Pre-feasibility expenses decreased by $1.1 million due to lower
pre-feasibility expenses on the San Bartolome project in the nine
months ended September 30, 2003 as compared to the same period of
2002.

Interest expense decreased in the nine months ended September 30,
2003 compared with the nine months ended September 30, 2002 to
$10.7 million from $17.4 million as a result of a decrease in the
Company's overall debt level.

During the nine months ended September 30, 2003, the Company
recorded a loss on the early retirement of debt of $34.0 million
compared to $2.9 million recorded in the same period of 2002.

The Company's net loss amounted to $53.5 million, or $0.35 per
share, for the nine months ended September 30, 2003 compared to a
net loss of $35.1 million, or $0.51 per share, for the same
period in 2002.

LIQUIDITY AND CAPITAL RESOURCES

The Company's working capital at September 30, 2003, increased by
$99.7 million to approximately $106.3 million compared to $6.6
million at December 31, 2002. The increase was primarily
attributed to $99.4 million of cash provided by financing
activities. The ratio of current assets to current liabilities
was 4.7 to 1.0 at September 30, 2003 compared to 1.2 to 1.0 at
December 31, 2002.

Net cash used in operating activities in the three months ended
September 30, 2003 was $0.2 million compared to net cash used in
operating activities of $2.3 million in the three months ended
September 30, 2002. The decrease in operating cash outflow of
$2.1 million is primarily the result of increased production
levels and lower production costs at the Cerro Bayo/Martha Mines.
Net cash used in investing activities in the third quarter of
2003 was $7.8 million compared to net cash used in investing
activities of $3.2 million in the prior year's comparable period.
The increase in cash used in investing activities primarily
resulted from an increase in expenditures on mining assets
associated with the crusher relocation project at the Rochester
mine. Net cash provided by financing activities was $75.4 million
in the thirdquarter of 2003, compared to cash provided of $0.7
million in the third quarter of 2002. The increase was primarily
a result of proceeds on issuance of common stock of $76.0
million, offset in part by bank borrowing repayments of $0.5
million and retirement of debt of $0.1 million. As a result of
the above, cash and cash equivalents increased by $67.4 million
in the third quarter of 2003 compared to a decrease of $4.7
million for the comparable period in 2002.

Net cash used in operating activities in the nine months ended
September 30, 2003 was $4.5 million compared to net cash used in
operating activities of $7.7 million in the nine months ended
September 30, 2002. The decrease in operating cash outflow of
$3.2 million is primarily the result of increased inventory
levels associated with increased production levels at the Cerro
Bayo/Martha Mines. Net cash used in investing activities in the
nine months ended September 30, 2003 was $17.0 million compared
to net cash used in investing activities of $5.0 million in the
prior year's comparable period. The increase in cash used in
investing activities primarily resulted from an increase in
capital expenditures at the Cerro Bayo and Rochester mines for
increased development work and crusher relocation project. Net
cash provided by financing activities was $99.4 million in the
nine months ended September 30, 2003, compared to cash provided
of $5.2 million in the same period of the prior year. The
increase was primarily a result of proceeds on issuance of common
stock of $87.5 million and proceeds on the issuance of long-term
debt of $33.3 million offset in part by retirement of debt of
$22.4 million. As a result of the above, cash and cash
equivalents increased by $77.8 million in the first nine months
of 2003 compared to a decrease of $7.5 million for the comparable
period in 2002.

The Company has improved its working capital position since
December 31, 2002 by completing a series of transactions designed
to improve its capital structure. These transactions include:

During the third quarter of 2003, the Company completed a public
offering of 23,730,250 shares of common stock at a public
offering price of $3.40 per share, which included 3,095,250
shares purchased by the underwriters at the offering price to
cover over allotments. The Company realized total net proceeds
from the offering, after payment of the underwriters' discount,
of approximately $76.0 million.

On July 7, 2003, the Company sold 0.2 million shares of common
stock to an institutional investor for an aggregate of $0.3
million, or $1.40 per share. The net proceeds from the sale of
shares were used to pay amounts owed by the Company's subsidiary,
Empresa Minera Manquiri S.A., a Bolivian corporation, under
contracts pursuant to which it obtained certain mineral rights in
Bolivia and for general corporate purposes. The sale of share was
effected pursuant to the Company's shelf registration statement.

On May 23, 2003, the Company sold 8.1 million shares of common
stock to an institutional investor for an aggregate of $10
million, or $1.23 per share. The Company also granted the
investor an option, exercisable within 30 days, to purchase an
additional 1.2 million shares of common stock at a price of $1.23
per share. The proceeds of the sale were used for general
corporate purposes and working capital needs, including the
repayment of 13-3/8% Notes and 6-3/8% Debentures. On June 20,
2003, the Company sold 1.2 million shares of common stock to the
institutional investor for an aggregate of $1.5 million, or $1.23
per share, in connection with the above-referenced option. The
sales of shares were effected under the Company's shelf
registration statement.

On February 26, 2003, the Company completed a private placement
of $37.2 million principal amount of 9% Notes. The net proceeds
were approximately $33.3 million. The 9% Notes are senior in
right of payment to the 6-3/8% and 7-1/4% Debentures. The 9%
Notes are convertible into Coeur common stock, at any time prior
to maturity at a conversion price of $1.60 per share, subject to
adjustment. Interest is payable semi-annually on February 15 and
August 15 of each year. The Company is entitled to elect to pay
interest in cash or stock, in its sole discretion. The 9% Notes
are redeemable at the option of the Company six months after
issuance, subject to certain conditions, and at the option of the
holders in the event of a change in control. Of the financial
advisory fees paid by the Company in connection with the issuance
of the 9% Notes, the Company elected to issue 0.6 million
unregistered shares of common stock valued at $1.54 per share in
lieu of cash.

On March 7, 2003, the Company called for the redemption of
approximately $22.4 million principal amount of the outstanding
6-3/8% Debentures, which was funded by a portion of the proceeds
received from the sale of the 9% Notes. The debt was retired on
April 7, 2003.

Effective as of July 10, 2003, Coeur d'Alene Mines Corporation
entered into a series of agreements under which indebtedness of
the Company will be exchanged for or converted into shares of the
Company's common stock. The Company and each of the holders of
the Company's 9% Notes entered into an Early Conversion
Agreement. The amount of principal converted under the Early
Conversion Agreements was $32.6 million, and the common shares
issued, including interest, was approximately 27.5 million. After
giving effect to the exchanges contemplated by the Early
Conversion Agreements, an aggregate of $4.6 million of 9% Notes
remain outstanding. The Company recorded a loss on early
retirement of debt of $4.2 million in the third quarter of 2003
in conjunction with these transactions.

During the nine months ended September 30, 2003, the holders of
$12.7 million principal amount of the Series I 13-3/8%
Convertible Senior Subordinated Notes due December 31, 2003
converted their notes, under their original terms, into a total
of 9.6 million shares of common stock, including make whole
interest payments.

During the nine months ended September 30, 2003, the holders of
the 6-3/8% Debentures due January 2004 exchanged $27.9 million
principal amount for 17.1 million shares of common stock and
holders of the 7-1/8% Debentures due October 2005 exchanged $2.1
million principal amount for 1.4 million shares of common stock.
In connection with these exchanges, the Company reported a loss
on the early retirement of debt of $29.6 million in the first
nine months of 2003.

At September 30, 2003, the Company had $86.9 million of cash and
cash equivalents and approximately $5.7 million available under
its working capital facility. Production ounces and production
costs are near budget for the year. Management therefore believes
that its existing and available cash and cash flow from
operations will allow it to meet its obligations for the next
twelve months. However, the Company may continue to seek various
forms of financing in the future.

* * *

As reported in Troubled Company Reporter - Latin America's
October 9, 2003 edition, Standard & Poor's Ratings Services
revised its outlook on silver and gold mining company Coeur
D'Alene Mines Corp., to positive from negative following the
company's recently completed equity sale.

At the same time, Standard & Poor's affirmed its 'CCC' corporate
credit rating on the company. The Coeur D'Alene, Idaho-based
company currently has about $19 million in total debt.



=============
J A M A I C A
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JPSCO: Senator Seeks Generating Capacity Details
------------------------------------------------
The Jamaican Government should provide a detailed account of the
generating capacity of the Jamaica Public Service Company
(JPSCo), the Jamaica Gleaner reports, citing a motion filed by
Opposition Senator Bruce Golding. Furthermore, Golding's motion,
filed at the October 17 sitting of the Senate, calls on the
Government to establish a plan to ensure that there is adequate
and reliable supply of electricity to meet the nation's
requirements.

In the motion, Golding stated that the island had been "plagued
over the past several months with frequent disruption of
electricity supply, causing inconvenience, loss of production and
damage to equipment and appliances".

"And whereas specific assurances given by the JPSCo to ensure a
consistent and reliable supply of electricity have not been
fulfilled, be it resolved that the Government provide a detailed
account to the Honourable Senate of the current state of the
JPSCo's generating capacity and the steps that are being taken to
ensure an adequate and reliable supply of electricity to meet the
nation's requirements," the motion added.



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

GRUPO SIMEC: First Three Quarters 2003 Show Improved Results
------------------------------------------------------------
Grupo Simec, S.A. de C.V. announced Tuesday its results of
operations for the nine-month period ended September 30, 2003.
Net sales increased 26% to Ps. 1,997 million in the nine months
ended September 30, 2003 compared to Ps. 1,591 million in the
same period of 2002 due to higher finished product prices and
increased production levels. Primarily as a result of the
foregoing and significantly lower financial expense in the 2003
period, in the nine-month period ended September 30, 2003 Simec
recorded net income of Ps. 281 million versus net income of Ps.
66 million for the comparable period of 2002.

Simec sold 463,286 metric tons of basic steel products during the
nine months ended September 30, 2003 as compared to 451,037
metric tons in the same period of 2002. Exports of basic steel
products decreased to 54,047 metric tons in the nine-month period
ended September 30, 2003 versus 61,853 metric tons in the
September 30, 2002 period. Simec also sold 47,049 tons of billet
in the first nine months of 2003 as compared to 21,476 tons of
billet in the prior comparable period. Prices of finished
products sold in the nine-month period ended September 30, 2003
increased 18% in real terms versus the same period of 2002.

Simec's direct cost of sales was Ps. 1,308 million in the nine-
month period ended September 30, 2003, or 65% of net sales,
versus Ps. 1,067 million, or 67% of net sales, for the 2002
period. Indirect manufacturing, selling, general and
administrative expenses (including depreciation) increased to Ps.
347 million during the nine-month period ended September 30,
2003, from Ps. 338 million in the September 30, 2002 period.

Simec's operating income increased 84% to Ps. 342 million during
the first nine months of 2003 from Ps. 186 million in the same
period of 2002. Operating income was 17% of net sales in the
nine-month period ended September 30, 2003 compared to 12% of net
sales in the same period of 2002.

Simec recorded no other income, net, in the nine-month period
ended September 30, 2003 compared to other income, net, of Ps. 10
million in the same period of 2002. In addition, Simec recorded a
provision for income tax and employee profit sharing of Ps. 37
million in the nine-month period ended September 30, 2003 versus
a provision of Ps. 14 million in the same period of 2002.

Simec recorded financial expense of Ps. 24 million in the nine-
month period ended September 30, 2003 compared to financial
expense of Ps. 116 million in the same period of 2002 as a result
of (i) net interest expense of Ps. 14 million in the first nine
months of 2003 compared to net interest expense of Ps. 45 million
in the same period of 2002, reflecting lower debt levels in the
2003 period; (ii) an exchange loss of Ps. 9 million in the nine-
month period ended September 30, 2003 compared to an exchange
loss of Ps. 95 million in the same period of 2002, reflecting
lower debt levels in the 2003 period and a decrease of 6% in the
value of the peso versus the dollar in the 2003 period compared
to a decrease of 11% in the value of the peso versus the dollar
in the 2002 period; and (iii) a loss from monetary position of
Ps. 1 million in the nine-month period ended September 30, 2003
compared to a gain from monetary position of Ps. 24 million in
the same period of 2002, reflecting the domestic inflation rate
of 2.3% in the 2003 period compared to the domestic inflation
rate of 3.9% in the 2002 period and lower debt levels during the
2003 period.

At September 30, 2003, Simec's total consolidated debt consisted
of approximately $2 million of U.S. dollar-denominated debt,
while at December 31, 2002, Simec had outstanding approximately
$47.8 million of U.S. dollar- denominated debt. Simec's lower
debt level at September 30, 2003 reflects the prepayment of $31.4
million of bank debt in the nine-month-period ended September 30,
2003, the conversion to common stock in March 2003 of $16.1
million of loans (plus accrued interest thereon) from Simec's
parent company Industrias CH, S.A. de C.V. ("ICH") at a
conversion price equivalent to U.S. $1.35 (Ps. 14.588) per
American Depositary Share and a capital contribution from ICH to
Simec in the amount of $14.5 million (the proceeds of which were
used to retire debt owed to ICH) for capital stock to be issued
in the fourth quarter of 2003. Simec currently owes no amounts to
ICH.

All figures were prepared in accordance with Mexican generally
accepted accounting principles and are stated in constant Pesos
at September 30, 2003.

Simec is a mini-mill steel producer in Mexico and manufactures a
broad range of non-flat structural steel products.


GRUPO TMM: Reports Improvement in 3Q03, 9-Months 2003
-----------------------------------------------------
Grupo TMM, S.A., a Latin American multi-modal transportation and
logistics company and owner of the controlling interest in
Mexico's busiest railway, TFM, reported revenues from
consolidated operations of $230.1 million for the third quarter
of 2003, compared to $224.6 million for the same period of 2002.
Improved revenues were reported across all divisions, except
Specialized Maritime. The company continued to be negatively
impacted in the third quarter by devaluation of the peso and by
reduced levels of automotive manufacturing in Mexico. Peso
devaluation was 8.2 percent quarter over quarter.

Operating profit for the third quarter decreased 4.3 percent
compared to the same period of 2002, due mainly to the slowdown
of the Mexican automotive industry and to increased fuel costs.

Revenues from consolidated operations for the first nine months
of 2003 were $678.0 million, compared to $688.4 million for the
same period of 2002. Operating profit for the nine months
decreased 19.6 percent compared to the same period of 2002.

The company had a net loss of $29.9 million, or approximately 53
cents per share, in the third quarter. Year-to-date net income
was a loss of $20.4 million, or 36 cents per share. Net profit in
the third-quarter and nine-month periods was impacted by one time
charges totaling $10.9 million, including, $2.8 million for costs
associated with employee severances; $2.4 million for
amortization of warrants issued in connection with the
convertible note paid earlier in the year; and $5.7 million in
net book loss from the sale of the Anahuac tanker vessel. TFM's
net income for the nine months was impacted by a one time charge
of $18.3 million as part of VAT recovery expenses and by $38.5
million associated with the declining value of deferred tax
credits primarily due to peso devaluation, $19.2 million of which
was booked in the third quarter.

In the nine-month period, unconsolidated TMM reduced financial
obligations by $60.9 million, and TFM reduced debt by $45.3
million.

At TFM, the company's rail subsidiary, nine-month revenue was
negatively impacted by $45.7 million primarily due to declining
auto production shipments and by continued peso devaluation of
8.2 percent for the quarter and 12 percent for the nine months.
Revenue growth at TFM returned in the third quarter.

In the third quarter, the company's Specialized Maritime reported
decreased revenues due to the elimination of the maritime car
carrier business. Absent this event, revenues would have
increased quarter over quarter by 9 percent. Gross profit and
operating profit for the division improved, increasing operating
margin by 3.5 percent. The division recently added three extra
vessels through a bidding process with PEMEX, which has improved
revenue by $840,000 per month starting in August. The business
unit is currently involved in a bidding process, which will be
concluded in early November, for an additional eight offshore
vessels. Chemical parcel tanker volume and revenue improved
quarter over quarter by approximately 41 percent and 32 percent
respectively.

TMM's Logistics division's revenues increased in the third
quarter compared to the same period of 2002 by 18.2 percent, due
to new line-feeding operations with the Mexican automobile
industry, additional volume in its trucking operations, increased
RoadRailer and trailer movements and terminal expansions. Margins
were impacted by imbalances of cargo, the introduction of new
equipment and one-time start-up costs.

In the Ports and Terminals division, revenues, gross profit and
operating profit increased during the third quarter of 2003
primarily due mainly to seasonal passenger activity at Acapulco,
in spite of a decrease in automobile handling.

Javier Segovia, president of TMM said, "While issues surrounding
our debt, the termination of the Acquisition Agreement with
Kansas City Southern and the VAT lawsuit have been in the
forefront, we achieved revenue improvement in all of our
divisions, except Specialized Maritime, which did experience
substantial margin improvements. Consolidated SG & A was reduced
across all operations by $3.9 million net of restructuring costs
during the last four months.

"We are actively engaged in a dialogue with bondholders organized
in an ad hoc committee and with their advisors," Segovia
continued, "which we hope will lead to a successful resolution.
The restructuring will allow us to focus on operations and
successfully execute our business plan.

"The termination by TMM's board of directors of the Acquisition
Agreement with Kansas City Southern for the company's interest in
TFM formalizes TMM's shareholders' decision to exercise the full
extent of their rights and not approve the transaction. We remain
confident that once all of the substantive issues are reviewed
through arbitration, the company will be able to pursue all
reasonable alternatives to restructure Grupo TMM and improve the
company's financial profile.

"Additionally, the courts in Mexico have resolved TFM's Valued
Added Tax lawsuit and instructed the government to award TFM a
tax certificate in an amount consistent with Article 22 of the
Mexican Fiscal Code. Even though the Fiscal attorney has sought a
revision and further clarification, we remain confident in the
integrity of the Mexican legal system and in the eventual
outcome."

"Finally," Segovia concluded, "Grupo TFM has requested adherence
to the specific process provided in the Purchase-Sales Agreement
of TFM's stock for the exercising of the Mexican government's Put
option for the 20 percent equity interest in TFM it retains.
Grupo TFM and its partners acknowledges its commitment to acquire
this remaining equity at TFM."

ASSET SALES AND LEGAL PROCEEDINGS

On April 22, the company announced it had entered into agreements
to place its interest in Grupo TFM ("TFM") under common control
with Kansas City Southern ("KCS") for $200 million in cash and 18
million shares of KCS common stock. TMM would have received an
additional cash payment, not to exceed $180 million, upon the
successful completion of certain events.

Previously, the company announced, that at its General Ordinary
Shareholders' meeting on August 18 shareholders unanimously did
not approve the sale of TMM's interests in Grupo TFM to KCS. As
was made public, approval of the company's stockholders was
required under the terms of the Acquisition Agreement for the
sale to proceed. As a result of the unanimous vote, TMM's board
of directors formally notified KCS of the termination of the
proposed sale.

Subsequently, the Mexican Foreign Investment Commission was also
formally notified by TFM of the termination of the application
before the Commission to permit KCS's participation in more than
49 percent of TFM's equity. On August 25, the Mexican Foreign
Investment Commission notified TFM that its resolution to close
the administrative process had been initiated before the
Commission.

On August 29, TFM announced it had given notice to KCS of the
exercise of its right to repurchase shares representing an
aggregate 51 percent interest in Mexrail, Inc. ("Mexrail") that
were sold to KCS in May 2003. The shares were being held in a
voting trust pending the receipt of approval of the United States
Surface Transportation Board ("STB") of KCS's application to
assume control of Mexrail. Under the terms of the Stock Purchase
Agreement entered into in April 2003, TFM had the unilateral
right to repurchase the shares of Mexrail for the same amount
received by TFM in May 2003 upon closing of the sale of the
shares to KCS.

On September 4, the company announced that KCS had initiated a
lawsuit in Delaware state court seeking a preliminary injunction
against TMM, seeking to impose restrictions on TMM pending the
outcome of arbitration or other dispute resolution process under
the Acquisition Agreement. On October 22, the court granted the
preliminary injunction to KCS requiring the parties to preserve
the status quo pending resolution of the arbitration process. TMM
had previously requested KCS to commence the arbitration process
as quickly as possible, and expects that process to begin in the
next few weeks.

On September 23, the U.S. STB issued a decision finding no need
to rule on the transfer back to TFM of the 51 percent interest in
Mexrail. On October 1, the company announced that TFM completed
the repurchase of the shares in Mexrail from KCS, upon which TFM
again owned 100 percent of Mexrail. The repurchase effectively
unwound the prior sale to KCS and did not affect the operations
of TFM or Mexrail.

The company's board of directors has also directed management to
pursue all reasonable alternatives to restructure TMM's
outstanding indebtedness and improve the company's financial
profile.

LIQUIDITY AND DEBT PROFILE

During late 2002 and early 2003, TMM presented various offers to
holders of its bonds due on May 15, 2003, and November 15, 2006,
in order to extend the maturity date of the issues through a Bond
Exchange.

After numerous extensions and amendments of the company's
exchange offer, with the goal of encouraging its creditors to
grant TMM the necessary time to finalize the sale of assets and
be able to fulfill its obligations, the company was unable to
obtain the percentage of support required for the Bond Exchange
to be completed on terms that were commercially reasonable for
the company.

The company remains committed to honoring its financial
obligations while preserving its businesses, and has re-initiated
the negotiation process with its creditors, engaging Miller,
Buckfire, Lewis and Ying LLC to assist in the restructuring of
the company's debt. With the company's support, an informal
committee of holders of its Notes has been formed. The committee
is now represented by a substantive amount of the principal
holders of the Notes. The law firm of Akin, Gump, Strauss, Hauer
& Feld LLP, and the financial advisory firm of Houlihan Lokey
Howard & Zukin have been retained to represent the committee.

On August 22, the company announced it had completed the
refinancing of the outstanding amounts under its existing
receivables securitization program. After giving effect to the
amendments to the transaction, there will be approximately $54
million of outstanding certificates issued by the securitization
trust. The new certificates require monthly amortization of
principal and interest and mature in three years. This
refinancing improves the company's overall liquidity by allowing
the release of excess cash retained in the securitization trust
and significantly improves the maturity profile of the payments
due under the receivables securitization program, which had
become payable in June.

In the nine-month period of 2003, TMM reduced its financial
obligations by approximately $60.9 million primarily from the
debt repayment from the net proceeds of certain asset sales, and
TFM reduced its debt by approximately $45.3 million. As a result,
consolidated debt reduction was approximately $106.2 million.

VAT LAWSUIT

On August 26, the company announced that TFM was formally
notified by the Mexican Federal Tribunal of Fiscal and
Administrative Justice ("Fiscal Court") of its resolution
regarding TFM's Value Added Tax (VAT) Lawsuit initiated by TFM in
1997 (valued at $2,111 million pesos as of December 1996).

The resolution is the result of the unanimous vote of the nine
magistrates present at the public session, and was issued in
compliance with the June 11, 2003, ruling (amparo) of the Court
of the First Circuit (the "Federal Court"). With this new
resolution, the Fiscal Court has resolved to vacate its previous
resolution of December 6, 2002, considering the "ficta denial"
(negativa ficta) claimed by TFM, and has also resolved that TFM
proved its claim. The Fiscal Court has ordered the issuance of
the VAT Certificate to TFM under the terms established by article
22 of the Mexican Fiscal Code.

On October 3, the Tax Attorney of the Mexican Government filed
for a review of the ruling.

TFM PUT

Grupo TFM has requested a federal judge in Mexico to provide an
appropriate interpretation of the Purchase-Sale Agreement of
TFM's common stock, requesting adherence to the specific process
provided in the Agreement and its Amendments for the exercising
of the Mexican government's Put option for the 20 percent equity
interest in TFM it retains.

Since none of the steps of this process have been completed; and
the real value of the shares of TFM owned by the government
cannot be determined because TFM has not received reimbursement
of a Value Added Tax, although ordered by the Mexican Fiscal
Court on August 13, there can be no condition that applies in
order for the Mexican government to request that TFM acquire the
equity stake held at TFM by the government.

Grupo TFM acknowledges its commitment to acquire the equity
interest that the Mexican government holds in TFM and has
informed the government of its desire to comply once the pending
steps from the original Agreement are completed.

Headquartered in Mexico City, Grupo TMM is a Latin American
multimodal transportation company. Through its branch offices and
network of subsidiary companies, TMM provides a dynamic
combination of ocean and land transportation services. TMM also
has a significant interest in Transportacion Ferroviaria Mexicana
(TFM), which operates Mexico's Northeast railway and carries over
40 percent of the country's rail cargo. Visit Grupo TMM's web
site at www.grupotmm.com and TFM's web site at www.tfm.com.mx.
Both sites offer Spanish/English language options.

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

CONTACT:  GRUPO TMM
          Juan Fernandez, 011-525-55-629-8778                      
          juan.fernandez@tmm.com.mx

                     or

          Brad Skinner (IR)
          011-525-55-629-8725 /203-247-2420    
          brad.skinner@tmm.com.mx

                     or
    
          DRESNER CORPORATE SERVICES
          Kristine Walczak, 312-726-3600
          kwalczak@dresnerco.com

                     or

          AT PROA STRUCTURA
          Marco Provencio
          011-525-55-629-8708 /011-525-55-442-4948
          mp@proa.structura.com.mx


TFM: Reports Consolidated 3Q03, YTD Results Through September
-------------------------------------------------------------
Grupo Transportacion Ferroviaria Mexicana, SA. de C.V. and its
subsidiaries ("TFM") reported financial results for the third
quarter and first nine months of 2003.

THREE MONTHS

Consolidated net revenues for the three months ended September
30, 2003, were $178.2 million, which represents an increase of
$2.9 million or 1.7 percent from revenues of $175.3 million for
the same period in 2002. An 8.2 percent devaluation of the peso
quarter to quarter affected revenues by $4.7 million, and a
significant downturn in the Mexican automobile industry of 20
percent in unit production impacted revenues by $5 million.
Conversion from truck to rail and growth in chemical,
agroindustrial and cement and mineral product segments increased
revenues by $8.3 million. Revenues include $13.6 million from
Mexrail operations, consolidated with TFM since the second
quarter 2002.

Consolidated operating profit for the third quarter of 2003 was
$36.0 million, including a $1.8 million operating loss from
Mexrail operations, representing a decrease of $2.7 million from
the third quarter of 2002. The operating ratio (operating
expenses as a percentage of revenues) for the third quarter of
2003 was 79.8 percent including Mexrail operations and 76.6
percent without Mexrail. In spite of an increase of 15 percent,
or $1.9 million, in fuel cost, operating expenses were lower in
the third quarter compared with the same period in 2002:
salaries, wages and fringe benefits down 3.8 percent, other
employee expenses down 14.8 percent, and purchased services down
28 percent due to cost control measures in locomotive maintenance
and a more efficient operation and renegotiation of contracts.

NINE MONTHS

Consolidated net revenues for the nine months ended September 30,
2003, were $523.4 million, which represents a decrease of $9.0
million, or 1.7 percent from the same period of 2002. TFM's
revenues were negatively impacted by a 12.2 percent devaluation
of the peso, representing $21.6 million less revenue than the
same period of 2002, and by $24.1 million lower revenues from a
significant downturn in the Mexican automobile industry. However,
these losses in revenue were partially offset by increased volume
in truck to rail conversion; chemical, agroindustrial and cement
and mineral product segments; and Mexrail operations.

Consolidated operating profit for the nine months ended September
30, 2003, was $99.9 million, resulting in an operating ratio of
80.9 percent with Mexrail and 78.2 percent without Mexrail.
Operating expenses for the nine-month period reflected the
benefit of cost control measures: salaries, wages and fringe
benefit reduction of 6.4 percent, purchased services reduction of
3.5 percent due to savings in locomotive maintenance, and other
employee expense reduction of 3.0 percent. Operating expenses
also contained a 32.0 percent, or $10.6 million, increase in fuel
costs due to the increased prices during the nine months of 2003.

FINANCIAL EXPENSES

Net financial expenses incurred in the nine-month period were
$83.4 million, including $17.7 million related to the $180.0
million 2012 bond issued in July 2002. TFM recognized a $10.1
million foreign exchange loss resulting from the depreciation of
the Mexican peso relative to the U.S. dollar.

INCOME TAX

Deferred income tax reflected a $37.8 million charge to the nine
months results due to devaluation of the peso, which increased
temporary differences of the base assets for tax and accounting
purposes and reduced the balance of the NOL's are denominated in
pesos. Net loss carry forward as of September 30, 2003, was
$1.392 million.

LIQUIDITY AND CAPITAL RESOURCES

As of September 30, 2003, accounts receivable had decreased to
$190.2 million from $ 204.5 million at December 31, 2002, mainly
due to the recovery of tax receivables. TFM made capital
expenditures of $17.0 million in the third quarter of 2003 and
$51.0 million in the nine months of 2003, invested in the
improvement of TFM and Mexrail lines.

During September 2003 the company repurchased from Kansas City
Railroad 51 percent of the capital stock of Mexrail for $32.6
million, the same price received by TFM for the asset sale in May
2003.

As of September 30, 2003, outstanding net debt balance was $969.6
million, a leverage of $23.2 million lower than at December 31,
2002. Debt includes $95.0 million of U.S. commercial paper, a
term loan of $118 million and senior notes of $773.5 million.

To see financial statements: http://bankrupt.com/misc/TFM.htm
  
CONTACT:  Grupo TFM
          Mario Mohar
             or
          Jacinto Marina
          Phone: 011-525-55-629-8866

          Leon Ortiz
          Phone: 011-525-55-447-5836



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

CSS: Reports $25M Loss for 1H03
-------------------------------
Panama's state-run social security agency CSS registered a US$25-
million for the first half of the year, reports Business News
Americas. The negative result indicates that the Company is still
struggling to regain its financial health. CSS saw its pension
deficit increase by US$354 million in the year to June, says
Business News Americas.

Members of the medical fraternity, workers unions, teachers,
CSS's administrative personnel and politicians from across the
political spectrum have conducted a series of lightning strikes
to protest over excessive government interference in the running
of the agency and to press for the reinstatement of CSS executive
Juan Jovane.

Jovane was removed from his post at the CSS last month based on
his failure to present a budget for 2004 within the specified
timescale.

Last week, Panama's cabinet reaffirmed the Jovane's departure,
rejecting the executive's claims for unfair dismissal.



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

PDVSA: CITGO Clarifies Recent Income Statements Reports
-------------------------------------------------------
In light of certain published reports, CITGO Petroleum
Corporation wishes to clarify that:

For the nine-month period ending September 30, 2003 our net
income is approximately $350 million. Operating income (i.e.
income before interest and taxes) is approximately $640 million
for the nine-month period ending September 30, 2003. We
anticipate that earnings for the 4th Quarter of 2003 will be
positive, but will be less than earnings for the third quarter
2003.

On July 25, 2003 we made a $500 million dividend payment for the
purpose of enabling our parent, PDV America to make the principal
payment on $500 million, 7-7/8% senior notes due August 1, 2003.
The declaration of additional dividends in 2003 is contingent
upon future earnings.

Through the nine months ended September 30, 2003, CITGO
repurchased over $300 million of its bonds.

Our revolving bank loan agreements with various banks consist of
(i) a $260 million, three-year, revolving bank facility, maturing
in December 2005; and (ii) a $260 million, 364-day, revolving
bank facility, maturing in December 2003. As of September 30,
2003, there was no outstanding borrowing under these facilities.
We do not intend to replace the $260 million, 364-day, revolving
bank facility when it matures.

CITGO, based in Tulsa, Okla., is a refiner, transporter and
marketer of transportation fuels, lubricants, petrochemicals,
refined waxes, asphalt and other industrial products. The company
is owned by PDV America, Inc., an indirect wholly owned
subsidiary of Petroleos de Venezuela, S.A., the national oil
company of the Bolivarian Republic of Venezuela.

For more information on CITGO, visit www.citgo.com .

CONTACT:  CITGO Petroleum Corporation
          Kate Robbins
          Phone: 1-918-495-5764

          Jennifer Hill,
          Phone: +1-918-495-4260
          Fax: +1-918-495-5269

          Home Page: http://www.citgo.com/





               ***********


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

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