TCRLA_Public/031121.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

          Friday, November 21, 2003, Vol. 4, Issue 231

                          Headlines

A R G E N T I N A

323: Court Declares Company "Quiebra"
ALIMENTOS FARGO: Evaluadora Latinoamericana Rates Bonds `D'
AXESOR: Receiver Closes Verification Process
BANCO DE GALICIA: Not Affected by Correo's Loss of Contract
BANCO DE LA PAMPA: Fitch Rates $10M of Bonds `BB(arg)+'

BANCO HIPOTECARIO: Moody's Rates $1.2B of Bonds `D'
BANCO RIO: $1B of Bonds Rated `raBB+' by Argentine S&P
BYBLOS: Receiver Verifies Claims in Bankruptcy Process
CORREO ARGENTINO: Argentina to Rescind Postal Service Contract
DIESEL: Credit Verifications in Bankruptcy Process End Today

DISCO: Banco Montevideo Depositors Bar Sale to Cencosud
EDICIONES PROA: Enters Bankruptcy on Court Orders
GAYOSO Y COMPANIA: Court Approves Reorganization Petition
MASTELLONE HERMANOS: Standard & Poor's Rates $22M of Bonds `raD'
METCASA-METALURGICA: Receiver To Oversee Reorganization

NAUTIQ CIMBSA: Receiver Verifies Claims in Bankruptcy Process
SERVIS GS: Files "Concurso Preventivo" Motion
STARCOM: Court Approves Creditor's Motion for Bankruptcy


B E R M U D A

CRP: Fitch Revises Rating Watch on IFS Ratings to Negative

ESG RE: Reports $3.4M Net Loss in the 3Q03
LORAL SPACE: Unit Renews Agreement With Transvideo Electronics


B R A Z I L

AES CORP.: Court Decides to Suspend Seizure of Shares
CPFL: Net Loss Declines in the 3Q03


C H I L E

ENERSIS: Places 10-Yr. Bonds Worth $350M


C O L O M B I A

AVIANCA: Seeks Removal of Pilots' Rep from Creditors' Committee

* Colombia Invites Holders to Submit Offers to Exchange Bonds


J A M A I C A

CABLE & WIRELESS: Mobile Division Head Leaves Post


M E X I C O

ALESTRA: Fitch Assigns 'B-' Rating Following Debt Restructuring
HYLSAMEX: Parent May Sell Part of Stake, Say Analysts
SATMEX: Exec. Sees No Bankruptcy in the Near Term
VITRO: Vitro/AFG Float Glass Plant Started Operations


U R U G U A Y

* IDB Grants Loan to Help Strengthen Uruguay's Banking System

     -  -  -  -  -  -  -  -   

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

323: Court Declares Company "Quiebra"
-------------------------------------
Buenos Aires Court No. 13 declared local company 323 S.A.
"quiebra", local news source Infobae reports. Clerk No. 26
assists the court on the case, which will close with the
liquidation of the Company's assets.

The court assigned Mr. Jose Francisco Ruiz as the Company's
receiver, who will oversee the bankruptcy process. He will verify
creditors' claims until December 26 this year. He is also
required to prepare the individual and general reports, but the
source did not mention the deadlines for these reports.

CONTACT:  Jose Francisco Ruiz
          Ave Corrientes 4264
          Buenos Aires

          
ALIMENTOS FARGO: Evaluadora Latinoamericana Rates Bonds `D'
-----------------------------------------------------------
Bonds issued by Argentine company Alimentos Fargo S.A. were rated
`D' by local ratings agency Evaluadora Latinoamericana S.A.
Calificadora de Riesgo last Friday. The Company's financial
situation as of the end of June this year determined the rating
assigned.

The bonds, worth a total of US$120 million, were described as
"Obligaciones negociables Simples", according to the Comision
Nacional de Valores, the country's securities regulator. These
were classified under "Simple Issue" and would mature on July 24,
2008.


AXESOR: Receiver Closes Verification Process
--------------------------------------------
Estudio Cardero-Rojas, Muniz y Asociados, receiver for Argentine
company Axesor S.A., closes the credit verification period for
the Company's reorganization today. The receiver will prepare the
individual reports based on the results of the verifications.
These reports are to be submitted to the court on February 6 next
year.

The receiver is also required to prepare the general report after
the individual reports are processed at court. The general report
contains a summary of the information from the individual reports
and is due for filing on March 19, 2004. The reorganization
process would then proceed with the informative assembly on
August 9.

Buenos Aires Court No. 20 handles the Company's case with
assistance from Clerk No. 40, an earlier article from the
Troubled Company Reporter - Latin America indicated.

CONTACT:  Axesor S.A.
          Bernardo de Irigoyen 722
          Buenos Aires

          Estudio Cardero-Rojas, Muniz y Asociados
          Doblas 674
          Buenos Aires


BANCO DE GALICIA: Not Affected by Correo's Loss of Contract
-----------------------------------------------------------
Banco de Galicia y Buenos Aires SA said that the Argentine
government's decision to rescind Correo Argentino SA's postal
service contract will not affect the bank, which holds an 11.8%
stake in the postal company, relates Dow Jones.

"The measure doesn't have an impact on the results of the bank,
nor on its worth, given that as much of the investment as the
credits are found to be completely foreseen," Banco de Galicia
said in a brief statement to the Buenos Aires stock exchange.

Banco de Galicia's holding company is Grupo Financiero Galicia SA
(GGAL). Correo Argentino's majority shareholder is Sideco
Americana (SDA.YY), a consortium run by well-known Argentine
businessman Francisco Macri. Sideco holds a 69.2% stake, while
Correo employees own 14% and the International Finance
Corporation, the financing arm of the World Bank, has another 5%.

CONTACT:  Banco de Galicia Y Buenos Aires
          Tte Gral Juan D Peron 407
          Buenos Aires
          Argentina
          C1038AAI
          Phone: +54 11 6329 0000
          Fax: +54 11 6329 6100
          Home Page: http://www.bancogalicia.com.ar
          Contact:
          Juan Martin Etchegoyhen, Chairman
          Antonio R. Garces, Vice Chairman

          Grupo Financiero Galicia SA
          2nd Floor
          No 456 Tte Gral Juan D Peron
          Buenos Aires
          Argentina 1038
          Phone: +54 11 4343 7528/9475
          Home Page: http://www.gfgsa.com
          Contact:
          Atty. Abel Ayerza, Chairman


BANCO DE LA PAMPA: Fitch Rates $10M of Bonds `BB(arg)+'
-------------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. assigns junk ratings
to corporate bonds issued by Banco de la Pampa. The Comision
Nacional de Valores, the country's securities regulator, revealed
that the `BB(arg)+' rating applies to a total of US$10 million
worth of the bank's bonds.

The CNV described the affected bonds as "Obligaciones Negociables
Subordinadas" due on December 22, 2005. These were classified
under "Simple Issue", but the CUSIP was not revealed.

Fitch said that the assigned rating denotes a fairly weak credit
risk relative to other issued in Argentina. Within the context of
the country, payment of these financial commitments is uncertain
to some degree and capacity for timely repayment remains more
vulnerable to adverse economic change over time.


BANCO HIPOTECARIO: Moody's Rates $1.2B of Bonds `D'
---------------------------------------------------
A total of US$1.2 billion worth of bonds issued by Banco
Hipotecario S.A. received junk ratings from Moody's Latin America
Calificadora de Riesgo S.A. last Friday. The ratings agency said
that the `D' rating is assigned to bonds that are currently in
default. The rating was based on the Company's finances as of
September 30 this year.

The Comision Nacional de Valores described the bonds as "Programa
de Obligaciones Negociable (antes era por U$S 2.000 millones)".
These were classified under "program". The maturity date was not
revealed.


BANCO RIO: $1B of Bonds Rated `raBB+' by Argentine S&P
------------------------------------------------------
A total of US$1 billion worth of corporate bonds issued by
Argentine Banco Rio de la Plata S.A. earned junk ratings from
Standard & Poor's International Ratings, Ltd. Sucursal Argentina.
The `raBB+' rating was based on the Company's finances as of the
end of September this year.

Argentina's securities watchdog, the Comision Nacional de
Valores, relates that the bonds were called "Programa de
Obligaciones Negociables tramo subordinado por U$S 1000.000.000".
These were classified under "Program". The maturity date was not
revealed.

The ratings agency said an obligation rated `raBB' denotes
somewhat weak protection parameters relative to other Argentine
obligations. The obligor's capacity to meet its financial
commitments on the obligation is somewhat weak because of major
ongoing uncertainties or exposure to adverse economic, financial
or economic conditions.


BYBLOS: Receiver Verifies Claims in Bankruptcy Process
------------------------------------------------------
Argentina's Byblos S.A. entered bankruptcy with Mr. Alberto
Eduardo Scravaglini as receiver. Creditors must present their
claims to the receiver for verification before the February 23,
2004 deadline expires. The results of the verification process,
to be forwarded to the court via the individual reports, will
determine the payments to be made from the liquidation of the
Company's assets.

Judge Gonzalez of Buenos Aires Court No. 8 handles the Company's
case with assistance from Clerk No. 16, Dr. Saravia, relates
local newspaper Infobae. However, the source did not mention
whether the court has set the deadlines for the submission of the
receiver's reports.

CONTACT:  Byblos S.A.
          5th Floor, Room 21
          Parana 851
          Buenos Aires

          Alfredo Eduardo Scravaglini
          4th Floor, Room 67
          Ave Pres. Roque Saenz Pena 651
          Buenos Aires


CORREO ARGENTINO: Argentina to Rescind Postal Service Contract
--------------------------------------------------------------
Argentina's government has decided to rescind Correo Argentino
SA's contract for postal service. A team of four government
officials will now run Correo Argentino for six months, after
which the postal system will be reprivatized. Correo's contract
was established in 1997, making the company the world's first
fully privatized mail service.

During a press conference, Chief of Cabinet Alberto Fernandez
tied the decision to Correo Argentino's noncompliance with the
terms of the concession, poor service and heavy debt problems.
Correo Argentino has been failing to pay the government the
annual fee contemplated in the contract since 1999, which has led
to a debt of US$103 million.

Correo Argentino is controlled by Sideco Americana, a company
owned by Francisco Macri, with owns a 69.2% stake. Its partners
are Banco de Galicia (11.8%) and the International Finance
Corporation (5%). The rest belongs to the Company's workers.

Last Tuesday, Correo Argentino issued a release accusing the
government of animosity and reaffirming its intention of paying
the due fees and restructuring its US$142.4 million debt.

According to the media, Correo Argentino's total debt would
actually amount to US$312.5 million.

"Unfortunately and despite our formal request, we have not been
received by the authorities," the Company complained.


DIESEL: Credit Verifications in Bankruptcy Process End Today
------------------------------------------------------------
The credit verification process for the bankruptcy of Argentine
company Diesel S.A. ends today. As ordered by the court, the
Company's receiver, Mr. Julio Ramon Coy, will prepare the
individual reports on the verification results and submit these
to the court on February 4 next year.

After the individual reports are processed at court, the receiver
will prepare a general report consolidating the data from them.
This deadline for the filing of this report is March 17, 2004,
after which the Company's assets will be liquidated to reimburse
creditors.

An earlier report by the Troubled Company Reporter - Latin
America revealed that Buenos Aires Court No. 20 handles the
Company's case. Clerk No. 39 assists the court.

CONTACT:  Julio Ramon Coy
          Piedres 181
          Buenos Aires


DISCO: Banco Montevideo Depositors Bar Sale to Cencosud
-------------------------------------------------------
Although Argentina's antitrust authorities could approve Ahold's
sale of supermarket chain, Disco, to Chilean retail holding
Cencosud, the deal will have to withstand the civil action
brought by a group of depositors at Banco Montevideo of Uruguay,
which led to an embargo on Disco's shares, held since June 5.

The bank is owned by the Velox Group, Ahold's former partner in
Disco, and went bankrupt last year after Velox defaulted on
loans. Cristina Maeso, a lawyer that represents the group of
depositors, yesterday reminded that Disco couldn't be sold until
the embargo is lifted.

However, Ahold's spokespersons in Argentina denied that this
legal action might hinder the sale of the chain because,
according to them, the shares involved in the action are a
minority and the deal could be done for the rest, which would
allow Cencosud take control of Disco anyways.


EDICIONES PROA: Enters Bankruptcy on Court Orders
-------------------------------------------------
Buenos Aires Court No. 14 declared local company, Ediciones Proa
S.A. bankrupt, according to an Infobae report. Clerk No. 27 aids
the court on the case.

The Company's receiver, Mr. Anibal Carrillo, will verify
creditor's claims until March 1 next year. He is also required to
prepare the individual and general reports. The source, however,
did not say whether the court has set the deadlines for the
submission of these reports.

CONTACT:  Ediciones Proa S.A.
          Paraguay 643
          Buenos Aires

          Anibal Carrillo
          Uruguay 467
          Buenos Aires


GAYOSO Y COMPANIA: Court Approves Reorganization Petition
---------------------------------------------------------
Gayoso y Compania S.A.C.E.I., which is based in Buenos Aires,
will undergo reorganization after the city's Court No. 7 approved
its "Concurso Preventivo" filing. A report by local news source
Infobae indicates that Clerk No. 13 assists the court on the
case.

The court assigned local accountant Manuel Cibeira as the
Company's receiver. His duties include the verification of
creditors' claims and the preparation of the individual and
general reports. Infobae, however, did not reveal whether the
court has set the schedule for the processes in the
reorganization.

CONTACT:  Gayoso y Companis S.A.C.E.I.
          Bartolome Mitre 3677
          Buenos Aires

          Manuel Cibeira
          Ave Cordoba 1247
          Buenos Aires


MASTELLONE HERMANOS: Standard & Poor's Rates $22M of Bonds `raD'
----------------------------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
assigned `raD' ratings to bonds issued by Mastellone Hermanos
S.A. on Monday. The rating, based on the Company's finances as of
the end of September this year, effectively places the bonds in
the junk category.

S&P said that an obligation is rated `raD' when it is in payment
default, or the obligor has filed for bankruptcy, The `raD'
rating is used when interest or principal payments are not made
on the due date, even if the applicable grace period has not
expired, unless Standard & Poor's believes that such payments
will be made during such grace period.

The bonds, worth a total of US$225 million, were called
"Obligaciones Negociables, autorizadas por AGE de fecha
28.8.97.", according to the Comision Nacional de Valores, the
Argentine securities regulator. The bonds were classified under
"Simple Issue" and would come due on April 1, 2008.


METCASA-METALURGICA: Receiver To Oversee Reorganization
-------------------------------------------------------
Metcasa-Metalurgica Callegari S.A., based in Buenos Aires, will
undergo reorganization with Mr. Jorge Inafuku as receiver. Local
news portal Infobae indicates that the receiver would validate
creditors' claims until December 4 this year.

The city's Court No. 26, which handles the Company's case,
ordered the receiver to hand in the individual reports on
February 20 next year. These reports are to be prepared upon
completion of the credit verification process. The receiver will
also prepare a general report, due for filing on April 2, 2004,
after the individual reports are processed at court.

The informative assembly, which is one of the last parts of the
reorganization process, will be held on September 7 next year.

CONTACT:  Jorge Inafuku
          Cerrito 1070
          Buenos Aires


NAUTIQ CIMBSA: Receiver Verifies Claims in Bankruptcy Process
-------------------------------------------------------------
Creditors of Buenos Aires-based Natuiq Cimbsa S.R.L. must present
their claims to the Company's receiver for verification before
February 23 next year. A report by local newspaper La Nacion
reveals that the receiver, Mr. Pedro Mazzola, will oversee the
bankruptcy process.

The Company was declared bankrupt after the city's Court No. 8,
under Judge Gonzalez approved a creditor's bankruptcy petition,
on grounds that the Company failed to meet its financial
obligations. Dr. Saravia, Clerk No. 16 assists the court on the
case.

CONTACT:  Nautiq Cimbsa S.R.L.
          Brasil 71/73
          Buenos Aires

          Pedro Mazzola
          4th Floor, Room D
          Cramer 1859
          Buenos Aires


SERVIS GS: Files "Concurso Preventivo" Motion
---------------------------------------------
Servis G.S. S.R.L. filed a "Concurso Preventivo" petition at
Buenos Aires Court No. 26, Argentine news portal Infobae relates.
If the motion receives court approval, the Company would undergo
the reorganization process.

Clerk No. 51 aids the court on the case, the source adds.
However, it did not reveal whether the court is likely to approve
the filing or not.


STARCOM: Court Approves Creditor's Motion for Bankruptcy
--------------------------------------------------------
Judge Vassallo of Buenos Aires Court No. 5 ordered the bankruptcy
of local company Starcom S.A., Argentine newspaper La Nacion
reveals. The ruling comes after approval of the bankruptcy
petition filed by the Company's creditor, Metrored
Telecomunicaciones S.R.L., for nonpayment of debt.

The court assigned Ms. Zulma Ghigliano as the Company's receiver.
She has instructions to verify creditors' claims until February
19 next year. This is done to determine the nature and amount of
the Company's debts. The receiver's duties include the
preparation of the individual and general reports. La Nacion,
however, did not reveal whether the court, which works with Clerk
No. 9, Dr. Perez Casado, has set the deadlines for the submission
of these reports.

Domiciled in Buenos Aires, Starcom offers electronics and
communications services.

CONTACT:  Starcom S.A.
          5th Floor Room B
          Paraguay 776
          Buenos Aires

          Zulma Ghigliano
          Pasaje Cipoletti 554
          Buenos Aires



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

CRP: Fitch Revises Rating Watch on IFS Ratings to Negative
----------------------------------------------------------
Fitch Ratings, the international rating agency, has downgraded
SCOR Group's major reinsurance entities' Insurer Financial
Strength (IFS) ratings to 'BB+' from 'BBB'. At the same time the
agency has downgraded SCOR's Long-term ratings to 'BB' from 'BBB-
' and Short-term ratings to 'B' from 'F3'. The ratings remain on
Rating Watch Negative.

The Rating Watch on the IFS ratings of SCOR's Commercial Risk
Partners subsidiaries is changed from Evolving to Negative.

The rating action reflects Fitch's acknowledgment of further
reserve deficiencies mostly relating to SCOR's US and Bermudian
subsidiaries and its concerns about possible further unfavourable
developments. It also reflects the challenges the company is
facing in terms of business position and strategic orientation.
The agency has indicated that, if the EUR600 million capital
raising should not be successful, the ratings could be downgraded
further, by at least one notch. If it is successful, ratings
would most likely be affirmed at 'BB+'. Fitch will continue to
closely monitor the situation in consultation with the group's
management.

SCOR has disclosed substantial reserve insufficiencies and losses
from discontinued and non-core businesses, mostly related to non-
life activities in the US and the group Bermudian operations,
totalling EUR589m. These insufficiencies mostly relate to
underwriting years 1998-2001. In addition, a charge of EUR192m
was made against the deferred tax assets. As a consequence the
group's shareholder's equity has dropped to a low of EUR629m at
September-end 2003. This situation is likely to put pressure on
the group's business position and further limit its ability to
fully benefit from existing favourable underwriting conditions in
a number of reinsurance lines.

Nevertheless, Fitch considers positively the reported support
from a number of SCOR's shareholders for the capital increase, as
well as the refocusing of the group's underwriting on short-tail
risk in order to maximise the profitability of capital employed
and reduce risks assumed. Fitch also views favourably efforts
made by the new management team to improve internal reporting,
underwriting control and claims handling.

SCOR is a major publicly traded diversified reinsurer. Business
is underwritten under three major operating divisions; Property &
Casualty, Life and Business Solutions. It holds strong business
positions in a number of European countries and to a lesser
extent in Asia and Latin America.

Insurers rated in the 'BB' category are viewed as moderately weak
with an uncertain capacity to meet policyholder and contract
obligations. Though positive factors are present, overall risk
factors are high and the impact of any adverse business and
economic factor is expected to be significant.

The 'BB+' IFS rating (Rating Watch Negative) applies to the
following operating reinsurance company members of the SCOR
Group: SCOR; SCOR Reinsurance Co. (US), General Security
Indemnity Co., General Security National Insurance Co., General
Security Indemnity Co. of Arizona, SCOR Life U.S. Re Insurance
Co., Investors Insurance Corp., Republic-Vanguard Life Insurance
Co., SCOR Canada Reinsurance Co., Commercial Risk Re-Insurance
Co., Commercial Risk Reinsurance Co. Ltd., SCOR Deutschland
Ruckversicherungs AG, SCOR Italia Riassicurazioni SpA, SCOR U.K.
Co. Ltd., SCOR Reinsurance Asia-Pacific Pte Ltd, SCOR Reinsurance
Co.(Asia)Ltd.

CONTACT:  Marc-Philippe Juilliard
          Paris
          Phone: +33 1 44 29 91 37

          Greg Carter
          London
          Phone: +44 (0)20 7417 6327

          Geoff Mayne
          London
          Phone: +44 (09)20 7417 4378

          Media Relations:
          Campbell McIlroy
          London
          Phone: +44 20 7417 4327


ESG RE: Reports $3.4M Net Loss in the 3Q03
------------------------------------------
ESG Re Limited (ESREF.PK) reported recently its financial results
for the quarter ended September 30, 2003.

The company reported total revenues for the three months ended
September 30, 2003 of $22.3 million, including net premiums
earned of $21.3 million. The company had an underwriting profit
for the quarter of $7.4 million before accounting for the
increase in legal reserve of $5.9 million. The company also
reported gross written premiums of $44.2 million for the quarter.

Operational expenses for the quarter were $11.8 million including
a charge of $5.9 million in respect of an increase in the legal
reserve to cover exposures in relation to treaties under
arbitration and investigation. Other operating expenses amounted
to $5.9 million which was in line with budgeted costs.

The quarter resulted in an overall net loss of $3.4 million, or
$0.31 per share.

In assessing the third quarter, Alasdair Davis, CEO, stated that
"We successfully wrote new business of $38.0 million in the
reinsurance segment in the quarter and we expect to continue to
write further amounts of reinsurance business in the fourth
quarter of the year. Furthermore, we continue to grow the direct
segment where premiums written for the nine months ended
September 30, 2003 were $24.7 million compared to $18.9 million
for the same period last year. We have also settled the CNA Re
litigation matter which removes a significant uncertainty from
the Balance Sheet".

ESG Re Ltd provides medical, personal accident, credit life,
disability and special risks re-insurance to insurers and
selected re-insurers on a worldwide basis. The company
distinguishes itself from its competition by offering re-
insurance products and services that help its ceding clients to
manage their risks more effectively. ESG provides solutions to
specific underwriting problems, actuarial support, product design
and loss prevention.

ESG is building on its reinsurance expertise by developing its
direct marketing business. ESG will deliver innovative business
opportunities and client focused solutions to its affinity
partners using distribution methods such as direct mail,
telemarketing and bancassurance.

CONTACT:  ESG Re Limited
          Alasdair Davis, Chief Executive Officer
          Phone: +353 1 6750200
          Email: alasdair.davis@esg-world.com

          Alice Russell, Investor Relations
          Phone: +353 86 819 2945
          Email: alice.russell@esg-world.com


LORAL SPACE: Unit Renews Agreement With Transvideo Electronics
--------------------------------------------------------------
Loral Skynet announced Wednesday that it has renewed an agreement
to provide Internet services and enable two-way videoconferencing
to sites in the Middle East for Transvideo Electronics, a
prominent Washington, D.C based services integrator supporting
enterprise customers. Skynet's turnkey Internet backbone trunking
solution provides Transvideo with a two-way link, co-location
hosting services for videoconferencing equipment, VSAT
infrastructure and 24/7 network monitoring. Loral Skynet is a
wholly owned subsidiary of Loral Space & Communications (OTCBB:
LRLSQ).

"By providing direct access from the Middle East to the U.S.
Internet backbone, Skynet makes it possible for Transvideo to
deliver high-speed content from our Web servers to locations that
require reliable Internet services," said Chuck Djurovich, senior
vice president, Transvideo Electronics. "In addition, the
combination of this high-speed link and collocating our
videoconferencing equipment at Skynet's Mt. Jackson teleport
allows us to offer value-added applications to our customers
including two-way videoconferencing between multiple sites."

Combining a robust network, relationships with Tier-1 providers,
and licensing and regulatory experience, Skynet delivers
Transvideo a dedicated solution for high-speed delivery of
content from anywhere on the Internet to its clients' locations,
no matter how remote or isolated.

"Our unique infrastructure and managed network services enable
Skynet to address customized requirements such as Transvideo's,"
said Terry Hart, president, Skynet. "The integrated nature of
Skynet's business and the depth of experience that we have in
satellite services allows us to design networks that truly meet
the needs of every customer."

Skynet's Internet trunking services can be configured as a two-
way satellite connection or as a hybrid network integrating a
one-way satellite link with existing terrestrial links and can be
customized to meet individual network specifications. Skynet
provides 24/7 network support and monitoring, dedicated
bandwidth, and peering to the Internet backbone through Tier-1
ISPs.

Loral's Telstar 12 satellite covers the eastern part of the U.S.
as far west as Atlanta, most of South America, South Africa,
Europe and as far East as Moscow and the United Arab Emirates.
The satellite provides transoceanic service for video broadcast,
satellite newsgathering, business television, high-speed Internet
access and private networking services.

Transvideo Electronics has continuously provided terrestrial and
satellite communications solutions for the past 15 years to a
variety of customers: commercial, governmental and private.
Solutions include designing and engineering MMDS systems,
microwave links, videoconferencing, up/downlink etc. With offices
in the U.S. and the Middle East, Transvideo Electronics is
dedicated to providing cutting edge, patent level and original
communications solutions to its various customers.

A pioneer in the satellite industry, Loral Skynet delivers the
superior service quality and range of satellite solutions that
have made it an industry leader for more than 40 years. With its
fleet of satellites and its established hybrid VSAT/fiber global
network infrastructure, Skynet offers a unique, single source for
all broadcast, data network, Internet access and IP needs.
Headquartered in Bedminster, New Jersey, Skynet is dedicated to
providing secure, high-quality connectivity and communications.
For more information, visit www.loralskynet.com.

In addition to being the parent company of Loral Skynet, Loral
Space & Communications is a world-class leader in the design and
manufacture of satellites and satellite systems for commercial
and government applications through its Space Systems/Loral
subsidiary.

PRESS CONTACT:  Amy Trowbridge
                (908) 470-2495
                atrowbridge@loralskynet.com

                Investor Contact:
                John McCarthy
                (212) 338-5345
                www.loral.com



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

AES CORP.: Court Decides to Suspend Seizure of Shares
-----------------------------------------------------
A Brazilian state court ruled Tuesday to suspend the seizure of
shares that AES Corp. holds in power utilities here, paving the
way for the conclusion of a debt-restructuring agreement between
AES Corp. and Brazil's development bank BNDES.

BNDES said Wednesday it will schedule a meeting next week with
AES officials to put the finishing touches on a deal to
reschedule AES' US$1.2 billion financial obligations with the
federally-owned bank.

The accord involves the creation of a joint venture to run AES'
power companies in the country, so the deal could only go through
if all AES assets in Brazil were free of legal hurdles.

In an effort to get some of their cash back, unhappy creditors of
broadband services provider Eletronet SA, a bankrupt AES unit
here, in May filed for the seizure of AES-owned shares in AES
Tiete, Eletropaulo Metropolitana - AES' most important assets in
Brazil - and in Companhia Energetica de Minas Gerais, or Cemig,
in which AES holds a minority stake. AES allowed Eletronet to
default on several payments earlier this year, leading it to
bankruptcy.

Amid the bankruptcy proceedings, the U.S. power group was held
responsible for BRL550 million (US$187.07 million) in debt
Eletronet owes to its creditors.

As AES refused to pay its debts, Eletronet's creditors, through
bankruptcy administrator Isaac Zveiter, decided to take legal
action in May. Back then, the court ruled in favor of the
creditors.

Eletronet owes nearly 90% of its debt to suppliers Lucent
Technologies Inc. and Furukawa Cabos de Energia, a unit of
Japan's Furukawa Electric Co.

Zveiter or independent Eletronet's creditors can still appeal the
court's decision, which basically allows AES to continue not
paying its debts related to Eletronet, said a spokesman at the
Rio de Janeiro state court which judged the case. The bankruptcy
administrator couldn't be reached for comment.


CPFL: Net Loss Declines in the 3Q03
-----------------------------------
Brazilian energy provider Cia. Paulista de Forca e Luz (CPFL)
reported a third-quarter 2003 net loss of BRL63 million (US$21.4
million), a drop from the BRL211-million loss in the same period
a year ago, reports Business News Americas.

However, the Company, in a statement to the Sao Paulo stock
exchange Bovespa, said net losses for the first nine-month period
this year totaled BRL390 million, which is 2.8% higher than the
BRL379 million for the same period in 2002.

Net revenues rose 139% to BRL4.41 billion and gross results
improved 96.3% to BRL1.11 billion for the same nine-month period.

Net revenues reached BRL1.58 billion in the third quarter,
greater than the BRL1.3 billion revenue for the same period in
2002.

Financial expenses totaled BRL930 million in the January-
September 2003 period.

CPFL serves about 2.9 million customers in more than 230
municipalities in the state of Sao Paulo and distributes one-
fifth of electricity consumed in the state.

CONTACT:  Rodovia Campinas Mogi-Mirim, Km 2.5, Jardim Santana
          CEP 13088-900 Campinas, Sao Paulo, Brazil
          Phone: +55-19-3756-8198
          Fax: +55-19-3756-8392
          Officers: Carlos Ermirio de Moraes, Chairman
                    Wilson Pinto Ferreira Jr., President and CEO
                    Otavio Carneiro de Rezende, Director Finance
                                             and Administration



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

ENERSIS: Places 10-Yr. Bonds Worth $350M
----------------------------------------
Enersis, a Chilean energy unit of Spain's Endesa, issued on
international markets Wednesday US$350 million worth of 10-year
bonds with a 7.4% coupon, reports Reuters.

In a statement, Enersis revealed the proceeds of the bond issue,
together with an US$800-million syndicated loan signed by the
Company on Friday, will be used to prepay US$1 billion
outstanding on a US$1.590 billion senior secured syndicated term
loan facility that Enersis entered into on May 15, 2003.

The Company will begin a second share offering on Thursday that
will run through Dec. 20, in which it expects to raise about
US$130 million.

A first equity increase last June raised US$1.2 billion.

Enersis, the largest private electricity distribution group in
Latin America, is in the process of improving its finances after
it was battered by economic crises in Argentina and Brazil.

CONTACT:  Enersis SA
          Avenida Kennedy Vitacura No 5454
          Santiago Chile  1557
          Phone: +56 2 353 4400
          Fax:  +56 2 378 4768
          Home Page: http://www.enersis.cl
          Contacts:
          Engr Alfredo Llorente Legaz, Chairman
          Engr Rafael Miranda Robredo, Vice Chairman



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

AVIANCA: Seeks Removal of Pilots' Rep from Creditors' Committee
---------------------------------------------------------------
Embattled Colombian airline Avianca is seeking the removal of
Captain Alberto Padilla from its creditors' committee, reports
Portafolio.

The Company argues that Padilla, who represents the Colombian
Civilian Pilots' Association, has a conflict of interest, as he
is attempting to create a new company, to be called Fenix, and
that he is in a position of being privy to confidential
information as a member of the committee.

Padilla denies that he is a partner in the Fenix proposal. He
admitted though that he supports the creation of the new airline.

Avianca is currently operating under the US Chapter 11
legislation, which requires it to submit all decisions to the
creditors' committee.


* Colombia Invites Holders to Submit Offers to Exchange Bonds
-------------------------------------------------------------
Colombia has launched an invitation to the holders of its 9.75%
Puttable or Mandatorily Exchangeable Bonds due 2009 (the "Old
Bonds") to submit, in a modified Dutch auction, offers to
exchange up to U.S. $250,000,000 principal amount of Old Bonds
for an equal amount of its 9.75% Global Bonds due 2009 (the "New
Bonds") and a U.S. dollar amount of cash. For each U.S. $1,000
principal amount of validly tendered and accepted Old Bonds,
holders will receive an equal principal amount of New Bonds, and
a cash payment. The cash payment will be an amount, expressed as
a percentage of the principal amount of Old Bonds accepted for
exchange, as determined by Colombia in its sole discretion
pursuant to a modified Dutch auction. The results of the auction
will be announced at or around 5:00 P.M., New York City time, on
November 25, 2003. The minimum cash payment will be 1.5% of the
principal amount of the Old Bonds exchanged.

The invitation and withdrawal rights will expire at 5:00 P.M.,
New York City time, on November 24, 2003, unless extended by
Colombia (the "Expiration Date"). The invitation is expected to
settle on December 2, 2003.

Holders of Old Bonds who wish to participate may submit either
competitive or noncompetitive offers. A competitive offer is an
offer that sets forth an amount (expressed as a percentage of the
principal amount of the Old Bonds) such holder would be willing
to accept as the cash amount in respect of the Old Bonds that are
the subject of the offer (the "Offer Price"). By submitting a
noncompetitive offer, the participating holder agrees to accept
the cash amount established by Colombia (the "Clearing Cash
Payment").

Colombia will accept for exchange up to U.S. $250,000,000
principal amount of Old Bonds validly submitted prior to the
Expiration Date, subject to the terms and conditions set forth in
the prospectus supplement. If more than U.S. $250,000,000
principal amount of Old Bonds are accepted for exchange, Colombia
will reduce the principal amount of Old Bonds so accepted from
holders that submitted competitive offers specifying an Offer
Price equal to the Clearing Cash Payment and, to the extent
necessary, noncompetitive offers, pro rata (in increments of U.S.
$1,000 rounded downward), so that only U.S. $250,000,000
principal amount of New Bonds will be issued.

The invitation is part of a broader program of Colombia to manage
its external liabilities. The New Bonds will be consolidated and
form a single series with, and be fully fungible with, Colombia's
existing 9.75% Bonds due 2009.

Holders of the Old Bonds may participate in the invitation only
by submitting a letter of transmittal electronically through
DTC's ATOP system and by delivering bond instructions as
described in the prospectus supplement.

Copies of the prospectus, prospectus supplement and related
letter of transmittal may be obtained from the exchange offer
website at http://www.ubs.com/colombia-exchange,or from JPMorgan  
Chase Bank, as the exchange agent, 4 New York Plaza, 15th Floor,
New York, NY, 10004, attention: Institutional Trust Services,
J.P. Morgan Bank Luxembourg S.A., as the Luxembourg exchange
agent, 5 rue Plaetis, L-2338, Luxembourg or from UBS Securities
LLC, as the dealer manager, 677 Washington Boulevard Stamford,
CT, 06901 attention: Liability Management Group.

The Soliciting Dealers in Colombia are Bancolombia S.A., Citibank
Colombia, Corporacion Financiera del Valle S.A. and Interbolsa
S.A. - Comisionista de Bolsa.

The securities codes for the Old Bonds are:

CUSIP ISIN Common Code

195325AT2 US195325AT29 010465834



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

CABLE & WIRELESS: Mobile Division Head Leaves Post
--------------------------------------------------
Patrick King resigned from his post as head of the mobile
division at Cable & Wireless Jamaica last week Thursday with
immediate effect, reports the Jamaican Observer.

The resignation was "by mutual agreement," Errol Miller, the
Company's public relations manager, said, without elaborating as
to why it was with "immediate effect."

According to reports, King left C&WJ to start his own business.
But King refused to confirm the reports.

Since last year, C&W has not only faced stiff competition in its
cellular market, but has lost 10% of its residential customers --
mainly those who have racked up huge bills and opted for cellular
service rather than settling their indebtedness, the Jamaica
Observer recalls.

King, who spent about two years at C&W, oversaw the recent
transition to the Company's US$101-million mobile GSM network.



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

ALESTRA: Fitch Assigns 'B-' Rating Following Debt Restructuring
---------------------------------------------------------------
Fitch Ratings has assigned 'B-' ratings to the foreign and local
currency debt obligations of Alestra, S.A. de C.V. (Alestra)
following the completion of its recapitalization and debt
restructuring. Fitch has also assigned a 'B-' rating to the $304
million 8% senior notes due 2010, issued as part of the debt
exchange offering. The Rating Outlook is Stable.

The ratings reflect Alestra's new debt structure and the positive
impact the recapitalization and debt restructuring will have on
the company's ability to service its debt obligations going
forward. The new lower debt levels, cost of debt and associated
debt service requirements should better match Alestra's cash flow
generation to its debt servicing needs.

The restructuring has reduced the company's debt levels by
approximately one third from $582 million to $399 million,
decreased the average financing cost on the debt to approximately
8% from more than 12%, and lengthened the average debt maturity
to approximately 7 years from 4.5 years. The restructuring is
expected to significantly improve Alestra's credit ratios going
forward. EBITDA/ Interest should improve to 2.5-3 times (x)
compared to less than 1x in 2002 and Total Debt/EBITDA should
improve to approximately 4x compared to 7.8x in 2002.

Notwithstanding the improvements in its debt profile, Alestra
will continue to face competitive challenges posed by the leading
telecommunications operator, Telefonos de Mexico, S.A. de C.V.,
which controls over 90% of the local exchange sector, 70% of the
long distance sector and a substantial share of the data sector.
The 'B-' ratings reflect the competitive environment in Alestra's
primary markets (long distance, data and local services).

In particular, Fitch expects continuation of declining long
distance tariffs, which has negatively affected Alestra's
profitability in recent years. The possible elimination of the
proportionate return rule for incoming international long
distance calls could further pressure tariffs and is incorporated
into the ratings, although lower tariffs may lead to modest
improvements in long distance traffic. To offset slower growth in
the long distance segment, Alestra has focused on growing its two
other businesses, data and local services.

Alestra had defaulted on its debt obligations on Nov. 15, 2002
when it missed interest payments on its US$270 million senior
notes due 2006 and US$300 million senior notes due 2009. On Nov.
4, 2003, Alestra announced that it had received sufficient
participation from its bondholders to complete the debt exchange
that was initially launched in August 2003. Under the terms of
the debt exchange offering, Alestra offered bondholders two
options. The first option was a cash offer of $0.55 per dollar of
principal, for a maximum of $200 million of notes (implying total
cash out to bondholders of $110 million). The second option was
8% senior notes due 2010 with a face value of $1.06 per dollar of
principal (including $.06 to partially compensate holders for
unpaid interest on the senior notes due 2006 and 2009 over the
past year). The debt exchange required the minimum participation
of 85% of note holders.

As part of the restructuring and recapitalization, Alestra's
current shareholders Onexa (51%) and AT&T (49%) contributed $100
million in new equity capital, a key component of the debt
restructuring. In addition, AT&T paid Alestra $8.5 million in
cash for various business related items. These funds were used
for the cash offer option of the debt exchange.

Following the debt exchange, Alestra is expected to have $399
million of debt, comprised of newly-issued $304 million senior
notes due 2010, $37 million 12.125% senior notes due 2006 (not
tendered in the debt exchange), $46 million 12.625% senior notes
due 2009 (not tendered in the debt exchange), and $12 million of
vendor financing. All of the debt is dollar-denominated and is
unsecured. Alestra has little short term refinancing risk as the
majority of its debt is long-term.

Alestra has been a provider of long distance services in Mexico
since 1997. Its network interconnects 198 cities and has over
5700 route-km of long haul fiber, including more than 700 route-
km of metropolitan fiber. Although Alestra's strategy is to
diversify its revenue mix, long distance still accounted for 78%
of revenues during the first half 2003. Alestra also provides
data services (18% of revenues), which consists of internet,
frame relay, private lines and direct access. In September 2001,
Alestra also began providing local service in the three largest
metropolitan areas: Mexico City, Guadalajara and Monterrey (3% of
revenues). Alestra brands its services under the AT&T name.
  
CONTACT:  Fitch Ratings
          Guido Chamorro
          Phone: 312-368-5473

          Sergio Rodriguez
          Phone: +011 528 18 335-7239

          James Jockle (Media Relations)
          Phone: 212-908-0547


HYLSAMEX: Parent May Sell Part of Stake, Say Analysts
------------------------------------------------------
Mexico's Grupo Alfa is likely to sell off part of Hylsamex by
January next year, La Reforma reports, citing industry analysts.

"Hylsamex is not a risk for Alfa, seeing as the steelmaker could
gain around US$300 million [from] the sale of its wire rod and
rebar division to confront its [debt] problem," Banorte analyst
Franciso Suarez said.

Nuevo Leon-based Hylsamex saw its consolidated net loss ballooned
to US$24 million in the third quarter this year, from a loss of
US$3 million in the same quarter a year ago.

The unit, however, ended the recent quarter with a net debt of
US$1.05 billion, a US$13-million drop from the second-quarter
this year.

Alfa owns 92% of Hylsamex (BMV: HLYSAMXB), one of the country's
largest steelmakers.

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


SATMEX: Exec. Sees No Bankruptcy in the Near Term
-------------------------------------------------
An executive of Mexican satellite operator Satmex expressed
confidence that the prospect of bankruptcy for the Company is
"remote."

This, despite warning from creditors that they would accelerate
payment of US$320 million in debts if an agreement is not reached
by December 6, thereby forcing Satmex into bankruptcy
proceedings.

"[Bankruptcy] is still a very remote option. Negotiations are
continuing today, tomorrow and Friday. We hope to reach an
agreement," Gonzalez said. "We don't want to declare bankruptcy,"
Satmex operations vice president Arturo Gonzalez was cited
Thursday by Business News Americas as saying.

Satmex missed a US$16.2 million interest payment on August 1 this
year, and has subsequently been negotiating with an ad hoc
committee of noteholders that hold more than 70% of the
outstanding principal amount.


VITRO: Vitro/AFG Float Glass Plant Started Operations
-----------------------------------------------------
Vitro AFG, North America's newest and with the most modern float
glass technology is now in production in Mexicali, Baja
California, Mexico. Vitro AFG is a 50/50 joint venture of Vitro
Plan, S.A. de C.V., a subsidiary of Vitro, S.A. de C.V. (NYSE:
VTO; BMV: VITROA), and AFG Industries Inc., a subsidiary of Asahi
Glass Company in the United States of America.

The Vitro AFG $100 million dollar investment by Vitro Plan, S.A.
de C.V. and AFG Industries will supply the United States of
America, Canada, and Mexico construction markets with a broad
range of products from traditional clear for glazing, heavy glass
up to 8mm, and even mirror and coating quality glass. The joint
venture was initiated in 2001.

Originally a container facility owned by Vitro, the Mexicali
operation has been totally converted over the last 12 months into
the most modern of float glass plants capable of manufacturing
high quality flat glass. The plant will employ 226 people.

"This plant creates a strategic alliance between two key global
leaders, will allow our companies to grow our production and
enhance competitive services to our separate customers. This
Joint venture is a significant opportunity for both companies. It
is the beginning of a brilliant future", said Federico Sada, CEO
of Vitro.

Luc Willame, Senior Executive Vice President of Asahi, and
President of the Flat Glass Division, stated, "Roger Kennedy,
President & CEO of AFG, and his team recognized the current
Western United States and Canada supply/demand imbalance and
quickly responded to the challenge with this venture. The new
Mexicali plant will enable AFG to supplement the effort of our
Victorville, CA operation with consistent, quality glass
products. Our customers will have a seamless, reliable source of
glass now - and in the future - from this new facility."

The Mexicali facility will be operated by with a management team
selected by both Vitro and AFG, and will be managed by a jointly
appointed Board of Directors. The plant will principally be
supported by the Vitro Flat Glass business unit.

AFG Industries, Inc. is the operating unit of the Flat Glass
Company of Asahi, the largest glass producing company in the
world. Founded in 1978 and Headquartered in Kingsport, TN, AFG is
the leading glass supplier to the North American
Construction/Specialty industry, has 10 glass producing lines, 38
distribution and fabrication locations through AFGD, 5
residential insulating plants through AFG Insulating, 3 coating
operations with AFG Coatings, as well as other glass-related
joint ventures.

Vitro, S.A. de C.V. (NYSE: VTO; BMV: VITROA), through its
subsidiary companies, is one of the world's leading glass
producers. Vitro is a major participant in three principal
businesses: flat glass, glass containers and glassware. Its
subsidiaries serve multiple product markets, including
construction and automotive glass; fiberglass; food and beverage,
wine, liquor, cosmetics and pharmaceutical glass containers;
glassware for commercial, industrial and retail uses; plastic and
aluminum containers. Vitro also produces raw materials and
equipment and capital goods for industrial use. Founded in 1909
in Monterrey, Mexico-based Vitro has joint ventures with major
world-class partners and industry leaders that provide its
subsidiaries with access to international markets, distribution
channels and state-of-the-art technology. Vitro's subsidiaries
have facilities and distribution centers in eight countries,
located in North, Central and South America, and Europe, and
export to more than 70 countries worldwide.

CONTACT:  VITRO, S. A. DE C.V.
          (Media Monterrey):
          Albert Chico Smith
          +52 (81) 8863-1335
          achico@vitro.com

          (Media Mexico D.F.):
          Eduardo Cruz
          +52 (55) 5089-6904
          ecruz@vitro.com

          (Financial Community):
          Beatriz Martinez/Jorge Torres
          +52 (81) 8863-1258/1240
          bemartinez@vitro.com
          jtorres@vitro.com

          (U.S. Contacts):
          BREAKSTONE & RUTH INT.
          Alex Fukidis/Susan Borinelli
          (646) 536-7012 / 7018
          afudukidis@breakstoneruth.com
          sborinelli@breakstoneruth.com

          AFG INDUSTRIES, INC.
          URL: http://www.afg.com



=============
U R U G U A Y
=============

* IDB Grants Loan to Help Strengthen Uruguay's Banking System
-------------------------------------------------------------
A $200 million loan approved by the Inter-American Development
Bank will assist the Uruguayan Government in implementing a
Reform Program to stabilize bank liquidity and solvency and build
depositor confidence. The Program is being jointly supported by
the International Monetary Fund, the World Bank and the IDB.

Since the August 2002 crisis and in the context of the Reform
Program, Uruguayan authorities have adopted measures to maintain
access to sight and savings accounts, establish mechanisms to
efficiently and quickly attend to bank issues, liquidated three
banks and established limits on banks' public sector exposure.

These measures, undertaken in the framework of new laws to
strengthen the banking system and reform the financial system,
implied substantial operational changes to correct consequences
of the financial crisis and to minimize the risk of a repetition
of similar crises.

The loan approved Wednesday by the IDB Board of Executive
Directors will support measures designed to maintain an adequate
macroeconomic environment to carry out the program, stabilize
banks and strengthen the regulatory framework for the supervision
of public and private banks in accord with adjustments and
reforms agreed upon with the IMF, the World Bank and the IDB.

The policy-based loan is for a 20-year term, with a five-year
grace period, at an interest rate based on LIBOR. It will be
disbursed in three tranches, the first for $80 million and the
second and third for $60 million each, after verifying the
fulfillment of the specified conditions.

The IDB strategy for Uruguay is focused in supporting development
programs and government policies to promote sustained growth and
greater social equity in a context of macroeconomic stability.

The IDB lending program for Uruguay for 2003-2004 totals $355
million for public sector projects and additional $12.5 million
for private sector projects.




               ***********


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
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
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Copyright 2003.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
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