TCRLA_Public/031119.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Wednesday, November 19, 2003, Vol. 4, Issue 229

                          Headlines


A R G E N T I N A

CAJA DE VALORES: S&P Ratings Improve To Stable From Negative
DELTARBOR: Seeks Court Permission To Reorganize
DIAMETRO: Creditor Claim Verification to End February 2004
DISCO: Parent Discusses Sale To Chilean Retailer
EXPRESO GASPARI: To Undergo Reorganization

IMPULSO DE SAN LUIS: Court Sets New Informative Assembly Date
JAYPLEN: Court Assigns Accountant To Oversee Bankruptcy Process
JOJOBA RIOJANA: Court Approves Reorganization Petition
LUFT CONSULTING: Receiver Verifies Claims in Bankruptcy
MACCIO HERMANOS: Court Reschedules Informative Meeting Date

PROPHARMA: Motion For Reorganization Approved
RIOS Y MONTANAS: Court Approves Reorganization Petition
SIAN TRAVEL: Court Orders Bankruptcy Proceeding
SOCIEDAD TECNOINDUSTRIAL: Bankruptcy Affirmed by Court
SUPERMERCADOS: Bankruptcy Initiated by Court Order

TRANSMED: Court Approves Creditor's Bankruptcy Motion
WULI: Court Orders Bankruptcy


B E R M U D A

NORTHERN OFFSHORE: S&P Cuts Ratings to 'D' After Default
NORTHERN OFFSHORE: 3Q03 EBITDA Foreshadows Financial Trouble


B R A Z I L

CESP: Profit Improvement Leaves S&P Outlook Unchanged
FIBERCORE: Brazilian Subsidiary Escapes Chapter 11 Filing
VARIG-TAM: Code-Share Deal Under Scrutiny


C H I L E

AES GENER: Fitch Upgrades Rating to Watch Positive
ENDESA CHILE: Contemplates Energy Plant Expansion
ENERSIS: New Bank Loan, Note Issue Gets S&P 'BB+' Rating


E C U A D O R

PETROECUADOR: Predicts Falling Short On Production Goal


E L   S A L V A D O R

AES CLESA: Fitch Downgrades Ratings to 'BB+' from 'BBB-'


M E X I C O

ALESTRA: Exchange Offers for Notes Completed
EMPRESAS ICA: Shareholders Approve Capital Increase
GALEY & LORD: Files Reorganization Plan, Disclosure Statement
GRUPO MEXICO: Plans Bond Sale To Refinance Maturing Bank Loans
UNIMARK GROUP: All Assets May Be Sole To Resolve Debts


P E R U

* Peru $500M Bond Assigned 'BB-' Rating


     - - - - - - - - - -


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

CAJA DE VALORES: S&P Ratings Improve To Stable From Negative
------------------------------------------------------------
Standard & Poor's Ratings Services said Monday that it revised
its ratings outlook on Caja de Valores S.A. (Caja), Argentina's
central securities depository, to stable from negative. Standard
& Poor's also affirmed its 'B+/B' counterparty credit ratings on
the institution.

The rating on Caja is currently well above the 'SD' rating on the
sovereign, reflecting the institution's exposure to the risk
inherent to operating in Argentina, but also its critical role in
the Argentine capital markets, adequate financial safeguards, and
strong balance sheet. The change to a stable outlook reflects the
success Caja has had, and is expected to continue to have, in
demonstrating acceptable operating and financial performance
despite high country risk in Argentina.

"In addition to its principal responsibility for safekeeping
securities, Caja also acts as paying agent and registrar, and
provides data-processing services to Merval-the country's leading
securities clearance and settlement institution-and the
affiliated stock exchange. This diversification has helped Caja
navigate through the recent turbulence in Argentina's capital
markets," said Standard & Poor's credit analyst Carina Lopez.

Last August, the Argentine government issued a decree mandating
Caja to swap the guaranteed government loans that are in the
hands of investors who had rejected last year's pesification into
the original dollar government bonds, which are currently in
default. The original terms of the transaction, which took place
in 2001, gave investors the right to undo the exchange under
certain circumstances, but this was at the option of the
investors rather than the government. Therefore, the decree
mandated a swap that could be against the will of the
beneficiaries, whose interests are to be protected by Caja's
status as trustee of the government securities. In this role,
Caja has not proceeded with the swap mandated by a decree that
demonstrates the high legal insecurity of Argentina's operating
environment. Standard & Poor's believes that, so far, Caja's
behavior has protected the investors' best interest and has
maintained its reputation. The resolution of this conflict will
be closely monitored.

ANALYST:  Carina Lopez
          Buenos Aires
          Phone: (54) 11-4891-2118

          Ursula M Wilhelm
          Mexico City
          Phone: (52) 55-5279-2007


DELTARBOR: Seeks Court Permission To Reorganize
-----------------------------------------------
Deltarbor S.A.F.I. Y C., which is domiciled in Buenos Aires,
filed a motion for "Concurso Preventivo", seeking official
authorization to undergo reorganization at the city's Court No.
1, local news source Infobae reveals. The report, however, did
not give any indications whether the court, which is assisted by
Clerk No. 1 is likely to approve the motion.

CONTACT:  Deltarbor S.A.F.I. Y C.
          Ave Julio A Roca 672
          Buenos Aires


DIAMETRO: Creditor Claim Verification to End February 2004
----------------------------------------------------------
Creditors of Argentine company Diametro S.R.L. must present their
proofs of claim to the Company's receiver for verification before
February 5 next year. The verifications are done to determine the
nature and amount of the Company's debts.

The receiver, Mr. Mauricio Nudelman, will also prepare the
individual reports for the bankruptcy process, Argentine news
portal Infobae relates. He is also tasked with the preparation of
the general report after the individual reports are processed at
court. Infobae, however, did not reveal whether the court has set
the deadlines for the submission of these reports.

CONTACT:  Diamtero S.R.L.
          Ave Saenz 1371
          Buenos Aires

          Mauricio Nudelman
          Tucuman 1539
          Buenos Aires


DISCO: Parent Discusses Sale To Chilean Retailer
------------------------------------------------
Ahold (NYSE:AHO) confirmed Monday it is engaged in negotiations
with Chilean retailer Cencosud S.A. for the sale of its
controlling stake in the Argentine supermarket chain Disco S.A.
As of June 30, 2003, Disco S.A. operated 237 stores in Argentina.

Ahold and Cencosud must still finalize the stock purchase
agreement and Cencosud must conclude its confirmatory due
diligence. Parties expect signing of a binding transaction before
year-end. Closing of the transaction is conditional upon
obtaining local anti-trust approval, which may be expected before
the end of the second quarter of 2004.

Cencosud has interests in real estate, do-it-yourself (DIY)
stores and hypermarkets in Chile and Argentina. The company
operates 12 hypermarkets and 23 DIY stores in Argentina. It
acquired Ahold's stake in the Chilean supermarket chain Santa
Isabel in July 2003.

The intended divestment of Disco S.A. is part of Ahold's
strategic plan to restructure its portfolio, to divest
underperforming assets, and to concentrate on its mature and most
stable markets.

CONTACT:  Ahold Corporate Communications:
          Phone: +31.75.659.57.20


EXPRESO GASPARI: To Undergo Reorganization
------------------------------------------
The Civil and Commercial Tribunal of La Plata in Argentina
approved a petition for reorganization filed by local company
Expreso Gasari - Marinucci S.A., relates local news portal
Infobae. The province's Court No. 4 handles the Company's case.

The Court assigned Ms. Silvina Diva Sosa as receiver for the
process. She will authenticate creditors' claims until December
10 this year. After the verifications are closed, the receiver
will prepare the individual reports, which are to be submitted to
the court on February 25 next year. The general report is to
follow on April 8.

The informative assembly will be held on October 5 next year.

CONTACT:  Expreso Gaspari - Marinucci S.A.
          Calle 37 No. 421
          La Plata

          Silvina Diva Sosa
          Calle 14 No. 659
          La Plata


IMPULSO DE SAN LUIS: Court Sets New Informative Assembly Date
-------------------------------------------------------------
Buenos Aires Court No. 2 moved the organizational meeting date
for the reorganization process local company Impulso de San Luis
is undergoing. The scheduled meeting will be held on October 25
next year, Argentine news source Infobae reveals without
indicating the intended venue.


JAYPLEN: Court Assigns Accountant To Oversee Bankruptcy Process
---------------------------------------------------------------
Buenos Aires Court No. 3 assigned local accountant Jose Alfredo
Alegre as receiver for the bankruptcy of Jayplen S.A., reports
Argentine news source Infobae. The receiver is currently
verifying creditors' claims to determine the amount and nature of
the Company's debts. Infobae adds that the verification period
ends on December 29 this year.

The individual reports must be filed at the court on March 11
next year. These are prepared after the verification process is
completed. The receiver will prepare the general report after the
individual reports are processed at court. This report is due on
April 29, 2004.

The Company's assets would be liquidated at the end of the
process to reimburse its creditors. Payments would be based on
the results of the credit verification process.

CONTACT:  Jose Alfredo Alegre
          Viamonte 1592
          Buenos Aires


JOJOBA RIOJANA: Court Approves Reorganization Petition
------------------------------------------------------
Jojoba Riojana, which is based in the Argentine province of La
Rioja, will undergo reorganization. Local news source Infobae
reports that the province's Civil and Commercial Tribunal
approved the Company's "Concurso Preventivo" motion.

Court No. 1 handles the Company's case, the report says without
mentioning whether the court has assigned a receiver to the case.
The receiver will oversee the bankruptcy process and prepare the
required reports.


LUFT CONSULTING: Receiver Verifies Claims in Bankruptcy
-------------------------------------------------------
Ms. Silvia Monica Tauschek, receiver for Argentine company Luft
Consulting S.A., will validate creditors' claims until February
10 next year. This part of the bankruptcy process is done to
ascertain the nature and amount of the Company's debts.

Argentine news source Infobae suggests that Buenos Aires Court
No. 9 recently declared the Company "Quiebra". Clerk No. 18 aids
the court on the case, which will close with the liquidation of
the Company's assets to repay creditors.

The individual reports, which are prepared after the close the
verification process, must be filed at the court on March 23 next
year. The general report should follow on May 4.

CONTACT:  Luft Consulting S.A.
          Paraguay 541
          Buenos Aires

          Silvia Monica Tauschek
          Viamonte 658
          Buenos Aires


MACCIO HERMANOS: Court Reschedules Informative Meeting Date
-----------------------------------------------------------
The informative assembly for the reorganization of Buenos Aires
company Maccio Hermanos S.A. has been moved to October 25, 2004,
local news source Infobae reports without revealing the reasons
behind the delay. The city's Court No. 2 handles the Company's
case. The Company is currently undergoing the reorganization
process.


PROPHARMA: Motion For Reorganization Approved
---------------------------------------------
Court No. 4 of the Civil and Commercial Tribunal of Bahia Blanca
approved a motion for "Concurso Preventivo" filed by local
company Propharma S.R.L., reports local newspaper La Nacion.
Clerk No. 8 assists the court on the case.

The credit verification process will close on February 17 next
year. Creditors must present their proofs of claim to the
receiver, Mr. Adolfo Avinceta, for authentication before the said
date. The receiver will also prepare the individual and general
reports on the process, whose deadlines were not revealed in the
report.

CONTACT:  Propharma S.R.L.
          San Martin 669
          Bahia Blanca

          Adolfo Avinceta
          Mitre 1050
          Buenos Aires


RIOS Y MONTANAS: Court Approves Reorganization Petition
-------------------------------------------------------
Rios y Montanas S.A., which is based in La Rioja, Argentina, will
undergo reorganization after the province's Court No. 1 approved
its motion for "Concurso Preventivo". The Company's receiver, Mr.
Mario Daniel Gomez, will oversee the reorganization.

Creditors must present their claims to the receiver for
validation before December 10 this year. The receiver would then
prepare the individual reports on the results of the
verifications and submit these to the court on April 6 next year.

The receiver's duties include the preparation of the general
report after the individual reports are processed at court. The
deadline for the filing of this is May 26, 2004.

CONTACT:  Mario Daniel Gomez
          El Maestro 502
          Chilecito, La Rioja


SIAN TRAVEL: Court Orders Bankruptcy Proceeding
-----------------------------------------------
Argentine company Sian Travel Way S.A. entered bankruptcy on
orders from Buenos Aires Court No. 11. The city's Clerk No. 22
aids the court on the case. The Company's receiver, Miguel Angel
Marceesi, will verify creditors' claims until February 18 next
year, after which he will prepare the individual reports. The
individual reports are due for filing at the court on March 31,
2004, followed by the general report on May 12.

The bankruptcy process will close with the liquidation of the
Company's assets to pay off creditors. The results of the
verification process will determine the distribution of payments.

CONTACT:  Miguel Angel Marceesi
          Avellaneda 1135
          Buenos Aires


SOCIEDAD TECNOINDUSTRIAL: Bankruptcy Affirmed by Court
------------------------------------------------------
Argentine plastic maker Sociedad Tecnoidustrial S.R.L. enters
bankruptcy on orders from the city's Court No. 1, which is under
Dr. Dieuzeide. The ruling comes after the Company's creditor
filed the petition for nonpayment of debt.

The Court assigned Mr. Otto Reinaldo Munch as the Company's
receiver. In order to verify the nature and amount of the
Company's debts, the receiver will validate creditors' claims
until February 10 next year.

The receiver is also assigned to prepare the individual and
general reports. The source, however, did not reveal whether the
court, which works with Clerk No. 2, Dr. Pasina, has set the
deadlines for the submission of these reports.

CONTACT:  Sociedad Tecnoindustrial S.R.L.
          Ave Fernandez de la Cruz 2116
          Buenos Aires

          Otto Reinaldo Munch
          3rd Floor
          Maipu 509
          Buenos Aires


SUPERMERCADOS: Bankruptcy Initiated by Court Order
--------------------------------------------------
Buenos Aires Court No. 24 declared Supermercados 3 C S.A.
bankrupt and appointed local accountant Haydee Kravetz as
receiver, local news portal Infobae relates. Clerk No. 48 aids
the court on the case.

The credit verification period expires on December 29 this year.
The receiver will prepare the individual reports after that date.
These reports are due for filing on March 10, followed by the
general report on April 27. The general report is a consolidation
of the information in the individual reports after these are
processed at court.

CONTACT:  Haydee Kravetz
          Tucuman 1484
          Buenos Aires


TRANSMED: Court Approves Creditor's Bankruptcy Motion
-----------------------------------------------------
Judge Garibotto of Buenos Aires Court No. 2 approved a petition
for the bankruptcy of local company Transmed S.R.L., relates
local newspaper La Nacion. Clerk No. 3 aids the court on the
case, which will close with the liquidation of the Company's
assets to pay off creditors.

Creditors are given until February 25 next year to have their
claims authenticated by the Company's receiver, Mr. Raul Trejo.
This part of the bankruptcy process determines nature and amount
of the Company's debts. In the meantime, the source did not
mention whether the court has set the deadlines for the filing of
the individual and general reports.

CONTACT:  Transmed S.R.L.
          Ave Suarez 2756
          Buenos Aires

          Raul Trejo
          Montevideo 205
          Buenos Aires


WULI: Court Orders Bankruptcy
-----------------------------
Buenos Aires Court No. 2 declares local company Wuli S.A.
"Quiebra", reports Infobae. Working with Clerk No. 3, the court
assigned Mr. Jorge Eladio Feito as the Company's receiver.

The receiver's duties include the verification of creditors'
claims to determine the nature and amount of the Company's debts.
The deadline for verifications is December 18 this year. The
receiver will prepare the individual reports and submit them to
the court on March 3 next year. The general report must follow on
April 14.

The Company's assets will be liquidated at the end of the
process. Proceeds would be used to repay creditors based on the
results of the verification process.

CONTACT:  Wuli S.A.
          Parana 326
          Buenos Aires

          Jorge Eladio Feito
          San Martin 662
          Buenos Aires



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B E R M U D A
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NORTHERN OFFSHORE: S&P Cuts Ratings to 'D' After Default
--------------------------------------------------------
Standard & Poor's Ratings Services said Monday it lowered its
long-term corporate credit and senior unsecured debt ratings on
Bermuda-based oil drilling company Northern Offshore Ltd. to 'D'
(default) from 'CC'. At the same time, the ratings were removed
from CreditWatch, where they had been placed on Nov. 14, 2003.

The rating action follows the company's failure to pay--on
November 15, 2003--a $7.16 million coupon on its $143.3 million
outstanding senior bond, maturing 2005.

"Although the terms of the bond include a 30-day grace period, we
do not have sufficient evidence that the payment can be made
within this period," said Standard & Poor's credit analyst
Emmanuel Dubois-Pelerin. In addition, Standard & Poor's does not
have evidence that payment of the company's other financial
obligations can reasonably be expected.

ANALYST:  Per Karlsson
          Stockholm
          Phone: (46) 8-440-5927
          Email: per_karlsson@standardandpoors.com

          Emmanuel Dubois-Pelerin
          Paris
          Phone: (33) 1-4420-6673
          Email: emmanuel_dubois-pelerin@standardandpoors.com

          Standard & Poor's Ratings Desks:
          London: (44) 20-7847-7400
          Paris: (33) 1-4420-6705
          Frankfurt: (49) 69-33-999-223
          Stockholm: (46) 8-440-5916
          Moscow: (7) 095-783-4017
          Email: CorporateFinanceEurope@standardandpoors.com

          Press Contacts:
          Phone: (44) 20-7826-3605
          Email: media_europe@standardandpoors.com


NORTHERN OFFSHORE: 3Q03 EBITDA Foreshadows Financial Trouble
------------------------------------------------------------
Northern Offshore Ltd. (the "Company") reports consolidated
earnings before interest, tax, depreciation and amortization
(EBITDA) of US$5.6 million for the third quarter of 2003, down
from US$6.6 million in the second quarter. Revenues increased
from US$13.1 million in the second quarter to US$14.4 million in
the third quarter. The increase was mainly due to Energy Searcher
being on-hire throughout most of the third quarter whereas it was
off-hire between March 27 and May 16 in the second quarter.
Revenues from Northern Producer were in line with previous
quarters.

Operating costs increased by US$2.3 million from US$6.6 million
in the second quarter to US$8.9 million in the third quarter. The
significant factor was the Energy Searcher's period of off-hire,
which resulted in reduced operating costs in the second quarter.
The Company also incurred US$0.7 million costs in the third
quarter due to the planned annual maintenance schedule for
Northern Producer.

The net loss for the third quarter of 2003 was US$3.1 million
compared to a net loss of US$1.7 million for the second quarter.
In addition to the change in EBITDA the main reasons for the
increased loss include exchange losses of US$0.6 million on the
Company's NOK denominated Notes and a gain on repurchase of Notes
amounting to US$0.5 million. In addition, the Company recognized
US$0.5 million tax payable by its subsidiary, which operates
Northern Producer (which mostly relates to prior periods).

CONTACT:  Tor Olav Troim Tel: 44 77 34 976575
          Jon-Aksel Torgersen Tel: 47 22 93 60 00



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B R A Z I L
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CESP: Profit Improvement Leaves S&P Outlook Unchanged
-----------------------------------------------------
Standard & Poor's Ratings Services said Monday that the
considerable improvement in Companhia Energ‚tica de Sao Paulo's
(CESP; CCC/Negative/--) net profit in the first nine months of
2003 will not affect the ratings or outlook of the company.

The positive net gain of Brazilian real R$627.8 million compared
with a net loss of R$4.1 billion results from the noncash gains
of the local currency appreciation against the U.S. dollar.

EBITDA was negatively affected by lost revenues, and declined to
Br$890 million in September 2003 compared with R$1.1 billion
registered in the same period of 2002. According to Standard &
Poor's projections, internal cash generation should not be
sufficient to meet interest payments, resulting in an EBITDA-to-
interest coverage below 1x and negative funds from operations for
the full-year 2003. Lack of liquidity to meet interest and
amortization requirements in the short term remains its main
rating factor. CESP's recent debt restructuring, together with
the uncertainties that permeate the Brazilian electric sector
regulatory framework, limit the company's access to capital
markets or other sources of funding. The only alternative in the
near term would be a negotiation with its existing creditors, the
largest of which is the Brazilian treasury. The ratings can be
lowered again depending on the conditions under which these
payments are negotiated.

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


FIBERCORE: Brazilian Subsidiary Escapes Chapter 11 Filing
---------------------------------------------------------
FiberCore, Inc. (Pink Sheets: FBCE), a leading manufacturer and
global supplier of optical fiber and preform for the
telecommunication and data communications markets, announced
Monday it has voluntarily filed for protection under Chapter 11
of the U. S. Bankruptcy Code with the U.S. Bankruptcy Court for
the District of Massachusetts, Western Division, late Friday
afternoon, November 14th, as well as various motions, including a
motion for initial DIP financing, Monday.

The Company's foreign and domestic operating fiber subsidiaries
are not involved in the filing, and the Company, which serves
primarily as a holding company, intends to utilize the Chapter 11
process to restructure its balance sheet, while continuing to
operate its subsidiaries in Germany and Brazil. The Company
trusts that the filing will not impact day-to-day operations of
its fiber subsidiaries.

In support of the restructuring effort, the Company is pursuing
breach of contract claims and other potential recovery
situations. Accordingly, the Company has instituted an
adversarial proceeding in excess of $6,000,000 against CommScope
Inc. in bankruptcy court, which we expect will provide an
expedited process.

Mohd Aslami, chairman and chief executive officer of the Company
said, "Unfortunately, the decision to file was unavoidable, given
the inability to raise working capital in the U.S. following the
$5.3 million (yen-denominated) Shin-Etsu arbitration award in
late July. Moving forward, we will work with our lenders, trade
creditors, employees, and prospective buyers/investors, which we
believe is in the best interests of all, as we seek to maximize
the value of the business."

FiberCore, Inc. develops, manufactures, and markets single-mode
and multimode optical fiber preforms and optical fiber for the
telecommunications and data communications markets. In addition
to its standard multimode and single-mode fiber, FiberCore also
offers various grades of fiber for use in laser-based systems, to
help guarantee high bandwidths and to suit the needs of Feeder
Loop (also known as Metropolitan Area Network), Fiber-to-the
Curb, Fiber-to-the-Home, and Fiber-to-the Desk applications.
Manufacturing facilities are presently located in Jena, Germany
and Campinas, Brazil.

CONTACT:  Phone: 508-248-3900
          FAX: 508-248-5588
          E-Mail: sales@FiberCoreUSA.com
                  investor_relations@FiberCoreUSA.com
          URL: www.FiberCoreUSA.com


VARIG-TAM: Code-Share Deal Under Scrutiny
-----------------------------------------
The Brazilian Secretariat for Economic Monitoring - Seae
(Secretaria de Acompanhamento Economico) is now analyzing a code
share deal between Brazilian airlines Varig and TAM, reports
Gazeta Mercantil.

Varig and TAM agreed in February to merge and to start selling
tickets on each other's flights before the merger's completion.

"The code sharing," or sales agreement, "in the way it was done,
isn't viewed positively because what they're doing is simply a
reduction of supply," the Sao Paulo newspaper quoted Seae
Secretary Jose Tavares de Araujo as saying.

The study will be delivered to the Administrative Council for
Economic Defense - Cade (Conselho Administrativo de Defesa
Economica) and, depending on its conclusions, may suspend the
Varig-TAM deal or amend it.

CONTACT:      VARIG (Viacao Aerea Rio-Grandense, S.A.)
              Rua 18 de Novembro No. 800, Sao Joao
              90240-040 Porto Alegre,
              Rio Grande do Sul, Brazil
              Phone: (51) 358-7039/7040
                     (51) 358-7010/7042
              Fax: +55-51-358-7001
              Home Page: www.varig.com.br/english/
              Contacts:
              Dorival Ramos Schultz, EVP Finance and CFO
              E-mail: dorival.schultz@varig.com.br

              Investor Relations:
              Av. Almirante Silvio de Noronha,
              n  365-Bloco "B" - s/458 / Centro
              Rio de Janeiro, Brazil

              TAM
              Daniel Mandelli Martin, President
              Buenos Aires
              Tel. (54) (11) 4816-0001
              URL: www.tam.com.br



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C H I L E
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AES GENER: Fitch Upgrades Rating to Watch Positive
--------------------------------------------------
Fitch Ratings has placed the international senior unsecured local
and foreign currency ratings of AES Gener S.A. (Gener), as well
as its Chilean national scale ratings on Rating Watch Positive.
Both of the international ratings are currently 'B+' and the
Chilean national scale rating is 'Chl BB+'.

The Rating Watch status of Gener reflects the potential for
material positive credit improvement of the company resulting
from its announced recapitalization and refinancing plan. Key
components of the plan include a capital injection of
approximately US$300 million through the sale of shares to third
party investors and an equity contribution from The AES
Corporation (AES) and the issuance of a new US$400 million senior
secured bond.

Combined, the new capital will be used to refinance approximately
US$700 million of debt that matures during 2005 and 2006. Lower
consolidated debt should materially improve credit protection
measures while a new debt amortization schedule should minimize
liquidity concerns over the medium-term.

Gener is expected to launch a tender offer for its outstanding
convertible bonds and yankee bonds to be financed with the
proceeds from the previously mentioned transactions. Fitch will
continue to monitor the company's progress in executing its plan.

The operating fundamentals of Gener continue to reflect the
company's sound position in the Chilean electricity market.
Electricity demand in Chile has been almost 6% over the last
twelve months and regulated prices have continued their upward
trend, increasing approximately 8% in U.S. dollar terms in the
October 2003 tariff reset. Gener further benefits from its
project-like structural characteristics, including long-dated
power purchase agreements (PPAs) with financially strong
customers and fuel supply contracts that reduce business risk.
The result for Gener is an underlying, relatively stable base of
long-term cash flows that should support a more appropriate
capital structure, including lower debt, at a higher rating
level.

CONTACT:  Jason T. Todd
          Chicago
          Phone: +1-312-368-3217

          Daniel R. Kastholm, CFA
          New York
          Phone: +1-312-368-2070

          Carlos Diez
          Santiago, Chile
          Phone: +011-562-206-7171

          Media Relations:
          Matt Burkhard
          Phone: +1-212-908-0540


ENDESA CHILE: Contemplates Energy Plant Expansion
-------------------------------------------------
Empresa Nacional de Electricidad SA, Chile's biggest power-
generating company, is planning to build a second unit of its San
Isidro plant in Quillota to take advantage of the rising demand
for electricity in the country, reports Bloomberg.

The energy plant expansion may require Endesa Chile, a unit of
Endesa SA of Spain, some US$200 million. The unit, according to
spokesman Renato Fernandez, would begin operations by 2006.

Fernandez said the company wants to ensure it will be able to
acquire enough gas to fire the thermoelectric plant before
deciding next year whether to begin construction. The Company,
Fernandez said, is looking to buy the gas from Argentine
companies and wants to see them invest in production.


ENERSIS: New Bank Loan, Note Issue Gets S&P 'BB+' Rating
--------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB+' rating to a
US$500 million unsecured syndicated bank loan and US$300 million
unsecured notes to be issued by Chile-based electricity provider
Enersis S.A. The company's 'BBB-' corporate credit rating is
affirmed. The outlook is stable.

The US$500 million loan matures in December 2008. The five-year
facility has a 30-month grace period on principal repayments with
six semiannual equal installments of US$83.3 million from May
2006 and accrues interest at LIBOR + 225 basis points. The bullet
US$300 million bonds mature in 2013. Proceeds will be used to
prepay a senior secured syndicated bank loan outstanding since
last May, which will allow Enersis to release the collateral
granted as part of the previous transaction.

Enersis' senior unsecured debt is rated one notch below the
company's 'BBB-' corporate credit rating, reflecting structural
subordination. According to Standard & Poor's criteria, when
liabilities at the subsidiaries level are sizable regarding
consolidated assets, the senior unsecured debt rating of the
parent is notched down from the corporate credit rating.

The ratings on Enersis reflect its solid business position in
Chile, offset by the weak performance of its investments in
Argentina and Brazil and its relatively weak financial profile.

The stable outlook incorporates Standard & Poor's opinion that
the improvements in Enersis' financial performance and financial
flexibility during 2003 have alleviated refinancing risk and
should allow it to comfortable comply with its financial
obligations. Any improvement in the outlook or rating would
require further improvements of 60%-owned subsidiary Endesa
Chile's performance and a more consolidated stabilization of the
economic environment in Argentina and Brazil, which would allow
Enersis to improve financial coverage ratios well above the
current ones.

ANALYST:  Sergio Fuentes
          Buenos Aires
          Phone: (54) 114-891-2131

          Marta Castelli
          Buenos Aires
          Phone: (54) 114-891-2128



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

PETROECUADOR: Predicts Falling Short On Production Goal
-------------------------------------------------------
A spokesperson for Petroproduccion, the production subsidiary of
Petroecuador, admitted that Ecuador's state oil company, will not
be able to achieve its 2003 production goal of 218,000 barrels a
day (b/d), relates Business News Americas.

In fact, the spokesperson, Roberto Freire, said the state oil
company will be lucky enough to reach an average daily rate of
210,000b/d. On November 17, Petroproduccion produced only
202,000b, he revealed.

The Company will have a hard time achieving its goals amid
declining production on Petroecuador's fields and delays in
awarding two contracts worth a total of US$96 million to provide
nine drilling rigs, Freire said.

Petroecuador's board should award the two rig contracts this
week, but even then, the winning bidders will not be able to
start drilling until December and will not affect the annual
average production much, Freire said.

The new rigs will have more impact on Petroproduccion's 2004
production goal, which is 250,000b/d, he said.



=====================
E L   S A L V A D O R
=====================

AES CLESA: Fitch Downgrades Ratings to 'BB+' from 'BBB-'
--------------------------------------------------------
Fitch Ratings has downgraded the local currency and Zurich
political risk insured notes ratings of AES Clesa to 'BB+' from
'BBB-'. The Rating Outlook is Stable. The foreign currency rating
of 'BB+' remains with a Negative Outlook, which is constrained by
the sovereign rating of El Salvador of 'BB+' with a Negative
Outlook. The rating action reflects AES Clesa's slower than
originally expected improvement in credit protection measures,
potential increased exposure to the deficit between spot and
regulated electricity prices, government interference in
regulated tariff adjustments, increased regulatory risk, and
uncertain economic growth prospects in El Salvador.

During 2003, energy spot prices have been extremely volatile due
to a variety of factors such as continued demand growth, low
levels of installed capacity, lack of investment in new
generation projects, inefficient generators setting marginal
prices and high fuel prices. These factors, coupled with
government intervention on regulated prices, have increased the
sector's risk. In June 2003, the risk for distribution companies
was diminished by the creation of a compensatory fund.

Currently, this fund is confronting a mismatch between high spot
prices and low regulated prices, which is expected to continue as
no new generation investments are planned and pressures on
regulated prices may increase with the coming presidential
elections period. Although the cost of energy for distributors
should be a total pass through to the client, recent interference
in tariffs to end users has led to a systemic constantly
increasing deficit in the fund. This deficit may have to be
financed by market participants.

Through June 2003, consolidated debt-to-EBITDA reached 3.1
times(x) compared to 3.5x as of June 2002 and EBITDA-to-Interest
coverage ratio improved to 2.6x compared to 2.4x as of June 2002.
While the improvements in consolidated credit protection measures
are positive, the improvements remain slower than originally
anticipated. Going forward, ratios should slowly improve based on
normal operating conditions, continued demand growth, lower
energy losses and a conservative power purchasing strategy.
However, the issues noted above hold the potential to delay
improvement. Debt to capital remains stable at approximately 56%
and is expected to steadily improve as debt will begin to
amortize in December 2003.

AES Clesa operating fundamentals are sound. The company operates
as a natural monopoly in El Salvador, which provides stability to
cash flow and lowers operating risk. Although the concession is
not exclusive, competition from other distributors has been, and
is expected to be, limited. The majority of AES Clesa's operating
cash flow is derived from the distribution of electricity.
Management continues to focus on improving customer service,
lowering costs and enhancing revenues, which should support the
company's competitive and business positions.

AES Clesa is an electricity-distribution company based in Santa
Ana, El Salvador. It serves approximately 245,000 customers in
the western region of El Salvador, including Santa Ana, the
country's second-largest city, as well as other surrounding
areas. AES Clesa is 79.66% owned by AES El Salvador, an indirect
subsidiary of AES and Energia Global International. Energy losses
from both technical and non-technical factors were 12.5% as of
June 2003, reasonable for a non-urban electricity distributor in
Latin America.

CONTACT:  Giovanny Grosso
          Phone: +1-312-368-2074

          Jason Todd
          Chicago
          Phone: +1-312-368-3217

          Guillermo Zuniga
          San Jose, Costa Rica
          Phone: +506-296-9182

          Media Relations:
          Matt Burkhard
          Phone: +1-212-908-0540



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

ALESTRA: Exchange Offers for Notes Completed
--------------------------------------------
Alestra, S. de R.L. de C.V. ("Alestra") announces that it
consummated its exchange offers, cash tender offers and consent
solicitations (the "Offers") for its 12 1/8% Senior Notes due
2006 and its 12 5/8% Senior Notes due 2009 (together, the
"Existing Notes") this morning, November 17, 2003.

Alestra has delivered its new Senior Notes due 2010 (the "New
Notes"), as well as a cash payment, to the Depository Trust
Company ("DTC") for distribution to the holders of the Existing
Notes who tendered in the Offers. The New Notes are trading on
DTC, are listed on the New York Stock Exchange, and will begin
trading on the New York Stock Exchange on November 18, 2003.

Alestra is a leading provider of competitive telecommunications
services in Mexico that it markets under the AT&T brand name and
carries on its own network. Alestra offers domestic and
international long distance services, data and internet services
and local services.


EMPRESAS ICA: Shareholders Approve Capital Increase
---------------------------------------------------
Shareholders of Empresas ICA Sociedad Controladora, S.A. de C.V.
(BMV and NYSE: ICA), the largest engineering, construction, and
procurement company in Mexico, agreed to a capital increase of
MXN2.486 billion (US$223 million), reports Reuters.

Under the terms of the capital hike, shareholders will receive
two new shares for every one they currently own at a price of
MXN2 per share. The deal will put into circulation an additional
1.243 billion shares.

The capital increase, which will be undertaken between Nov. 19
and Dec. 4, will help ICA reduce its debt load which at the end
of September stood at MXN5.133 billion (US$460 million).

At the same time, ICA shareholders also reached a deal with Grupo
Financiero Inbursa, a banking firm owned by Carlos Slim, for
Inbursa to commit up to MXN500 million, for up to 250 million
shares, if the capital increase was not fully subscribed.

Additionally, shareholders agreed to give Inbursa an option to
purchase another 500 million shares equivalent to MXN1 billion at
the same price of MXN2 per newly issued share.

CONTACT:  Dr. Jose Luis Guerrero
          (5255) 5272-9991 x2060
          jose.guerrero@ica.com.mx

          Lic. Paloma Grediaga
          (5255) 5272-9991 x3470
          paloma.grediaga@ica.com.mx

          In the United States:
          Zemi Communications
          Daniel Wilson
          (212) 689-9560
          d.b.m.wilson@zemi.com


GALEY & LORD: Files Reorganization Plan, Disclosure Statement
-------------------------------------------------------------
Galey & Lord, Inc. (OTC Bulletin Board: GYLDQ), filed a proposed
plan of reorganization and related disclosure statement in the
United States Bankruptcy Court for the Southern District of New
York on Friday, November 14, 2003. The plan was filed jointly
with Galey & Lord's 11 direct and indirect domestic subsidiaries
(the "Company"), including Galey & Lord Industries and Swift
Denim.

The Company believes that in light of the filing of this plan, it
is poised to emerge from bankruptcy ready to build upon their
leadership position as a supplier of textile fabrics to the
apparel industry. Mr. Arthur Wiener, Galey's Chairman and Chief
Executive Officer, stated that "this is an important step for our
Company and we are grateful to our many loyal customers, vendors,
and employees for the support they have given us through this
difficult period. The plan allows us to successfully de-leverage
our balance sheet and emerge as a strong well-financed
enterprise. The Company expects to emerge with a capital
structure that will support its ongoing business ventures as well
as its vision of the future."

Under the plan, the Company's senior secured debt holders would
exchange approximately $300 million in pre-petition secured debt
for a combination of cash, a secured note in the amount of $130
million, and the equity of the emerging parent company. The
Company expects to have in place exit financing of up to $70
million of which approximately $25 million would be drawn upon
emergence. A cash pool would be available to satisfy a portion of
the claims of the companies' general unsecured creditors, and the
holders of the Company's $300 million subordinated senior notes
would receive warrants to purchase common stock if their class
votes to accept the plan. Current equity holders would receive no
distribution under the terms of the plan.

The bankruptcy court is expected to consider approval of the
disclosure statement on December 17, 2003. Once the disclosure
statement is approved, the Company will be able to solicit votes
on the plan. The Company expects the court to consider
confirmation of the plan by the end of January 2004, and the
Company hopes to emerge from bankruptcy soon thereafter. The
Company's DIP financing has recently been extended to February
15, 2004, subject to final court approval.

The Company and its foreign affiliates, are leading global
manufacturers of textiles for sportswear, including cotton
casuals, denim, and corduroy. The Company believes it is the
market leader in producing innovative woven sportswear fabrics as
a result of its expertise in sophisticated and diversified
finishing. Fabrics are designed in close partnership with
diversified base of customers to capture a large share of the
middle and high end of the bottomweight woven market. The Company
also believes it is one of the world's largest producers of
differentiated and value-added denim products. The Company and
its foreign subsidiaries employs approximately 3300 employees in
the United States and 1500 employees in its owned foreign
operations. The Company and their joint venture interests operate
facilities in the US, Canada, Mexico, Europe and Tunisia.

The Company's current trading symbol on the OTC Bulletin Board is
"GYLDQ."


GRUPO MEXICO: Plans Bond Sale To Refinance Maturing Bank Loans
--------------------------------------------------------------
Mexican copper miner Grupo Mexico SA will sell as much as MXN5
billion (US$448 million) of bonds with J.P. Morgan Chase & Co.
and Bank of America Corp. as sale managers, Bloomberg reports,
citing Hector Nieto, chief financial officer for Grupo Mexico's
mining operations.

According to Nieto, the Company, the world's third- largest
copper miner, will sell the bonds through its railroad unit
Ferrocarril Mexicano (Ferromex) to refinance bank loans maturing
next year. The Company plans to start the sale of the bonds next
month with an offer of at least MXN1 billion, Nieto said, adding
that the bonds will have maturities of up to seven years.

Grupo Mexico ended the third quarter with more than US$3 billion
of debt. It is looking to Mexico's growing pension funds for the
cash it needs to service its loan payments and keep operating.

As the Company struggles to return to profit after two years of
losses, investors like Javier Alamillo at Grupo Financiero
Santander Serfin SA in Mexico City said they will need assurances
in the bonds' contract before buying them.

"The covenants have to be reviewed to determine if they are
sufficient for this to be a safe investment," said Alamillo, who
helps manage more than US$3 billion in retirement funds. "I
understand that they're put together well, but we're still
evaluating."

Ferromex is selling its first-ever peso-denominated bond to raise
the money its parent company needs to pay back a US$200 million
loan J.P. Morgan gave it in April and a MXN2.5-billion loan Grupo
Financiero Inbursa SA gave it in 2001, Nieto said.

CONTACT:  GRUPO MEXICO S.A. DE C.V.
          Avenida Baja California 200,
          Colonia Roma Sur
          06760 Mexico, D.F., Mexico
          Phone: +52-55-5264-7775
          Fax: +52-55-5264-7769
          Home Page: http://www.gmexico.com
          Contacts:
          Germ n Larrea Mota-Velasco, Chairman and CEO
          Xavier Garca de Quevedo Topete, President and COO
          Alfredo Casar P,rez, COO, Ferrocarril Mexicano
          Daniel Ch vez Carre>n, COO, Industrial Minera M,xico
          Daniel Tellechea Salido, VP and Administration and
                                         Finance President


UNIMARK GROUP: All Assets May Be Sole To Resolve Debts
------------------------------------------------------
The UniMark Group, Inc. (OTC Pink Sheets: UNMG.PK) announced
Monday that it has closed the previously-announced sale of its
Victoria juice processing plant for aggregate cash consideration
of $3.5 million.

UniMark also announced that given the increased costs associated
with being a public company, the lack of liquidity for its common
stock, the liquidity problems at one of its Mexican subsidiaries
and the operational challenges facing the Company, its Board of
Directors, to maximize shareholder value, has authorized the
Company to explore all available "strategic alternatives,"
including the sale of all or a part of UniMark, its productive
assets and strategic partnering relationships for the growing,
distribution and marketing of fresh lemons.

About The UniMark Group, Inc.

The UniMark Group, Inc. is a vertically integrated citrus and
tropical fruit growing and processing company with substantially
all of its operations in Mexico.

CONTACT:  R. Arturo Herrera Barre, President and CEO
          David E. Ziegler, CFO/Investor Relations
          817-491-2992



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

* Peru $500M Bond Assigned 'BB-' Rating
---------------------------------------
Standard & Poor's Ratings Services said Monday that it assigned
its 'BB-' foreign currency rating to the Republic of Peru's
US$500 million 9.75% bond due 2033. Standard & Poor's said that
it also affirmed its BB-/Stable/B foreign currency and
BB+/Stable/B local currency sovereign credit ratings on the
republic.

According to Credit Analyst Sebastian Briozzo, with the
government's borrowing requirement practically covered for 2003,
this US$500 million issue will prefund an important part of the
government's 2004 funding program, including financing an
expected fiscal deficit of around 2% of GDP (US$1.3 billion).

"The fundamental factors supporting the bond's rating remain the
same," said Mr. Briozzo. "The country's 2004 gross external
financing requirement is projected at only 50% of reserves at
year-end 2004, although Peru's stock of debt remains among the
highest of rated sovereigns in relation to current account
receipts. A moderate fiscal deficit, a stable exchange rate, and
a low level of inflation also support the government's ratings,"
he said.

Mr. Briozzo added that, on the other hand, high levels of poverty
(55% of the population as of 2001), political uncertainty driven
by President Alejandro Toledo's low popularity level, and the
above-mentioned high external debt burden constrain the ratings.

Peru's sovereign ratings carry a stable outlook, reflecting
Standard & Poor's expectations that economic reform will progress
slowly.

ANALYST:  Sebastian Briozzo
          New York
          Phone: 212-438-7342

          Roberto Sifon Arevalo
          New York
          Phone: (1) 212-438-7358




               ***********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
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Copyright 2003.  All rights reserved.  ISSN 1529-2746.

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