TCRLA_Public/031125.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

          Tuesday, November 25, 2003, Vol. 4, Issue 233

                          Headlines

A R G E N T I N A

AGINEL: Individual Reports Due for Filing Today
AUXI-THERAPIA: Files "Concurso Preventivo" Motion
CORREO ARGENTINO: Likely To End In Bankruptcy, Asset Liquidation
CORREO ARGENTINO: Govt.'s Decision May Indirectly Affect Sideco
CRESER CREDITO: Court Reschedules Reorganization

DESIGN COMPANY: Court Assigns Receiver for Bankruptcy
DIRECTV LA: File Second Joint Motion To Extend Exclusive Periods
EMERGENCIAS: Seeking Court's Approval on Reorganization
EMERNORT: Submits "Concurso Preventivo" Motion To Court
HILASA: Court Orders Bankruptcy

JUAN SALE: Court Approves Reorganization Petition
MEMBRILLAR: Enters Bankruptcy on Court Orders
NORTE LOGISTICA: Court Sets Bankruptcy Proceedings Schedule
ORGANIZACION FUTURA: Receiver Closes Verification Process
SOCIEDAD INTERNACION: Files for "Concurso Preventivo"

TANGO FURS: Court Declares the Company "Quiebra"
TEXTIL ARIES: Individual Reports Filing Deadline Today
TRAINING CENTER: General Report Filing Deadline Expires Today


B R A Z I L

AES CORP.: Govt. Moves To Push Through Debt Deal With BNDES
CFLCL: Issues Stockholders Report For 3Q03
ELETROPAULO METROPOLITANA: Increasing Investments in 2004 & 2005
VARIG: Makes First Quarterly Profit Since 1995


C H I L E

LE MANS: Auction To Take One Year, Says Auditor
MADECO: Fitch Ups Bond Rating to `BB+'
VIDA PLENA: Needs At Least $9M Capital Injection, Says Regulator


C O L O M B I A

* Colombia Amends Procedures, Extends Bonds Offer Deadline


D O M I N I C A N   R E P U B L I C

* IDB Approves $6M Loan To Dominican Republic

     -  -  -  -  -  -  -  -

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

AGINEL: Individual Reports Due for Filing Today
-----------------------------------------------
The individual reports for the reorganization of Argentine
company Aginel S.R.L. are due for submission today. The Company's
receiver, Mr. Antonio Elias Am, was required to prepare the
reports after the credit verifications ended earlier this year.

The receiver will prepare the general report, which must be filed
on February 24, 2004, after the individual reports are processed
at court. The reorganization will then proceed with the
informative assembly, which will be held on August 12 next year.

The Company entered bankruptcy after Civil and Commercial
Tribunal of Las Flores in Cordoba approved the Company's motion
for "Concurso Preventivo", the Troubled Company Reporter - Latin
America reported earlier.

CONTACT:  Aginel S.R.L.
          Napoles 3110 Las Flores
          Cordoba

          Antonio Elias Am
          Avenida Velez Sarsfield 468
          Cordoba


AUXI-THERAPIA: Files "Concurso Preventivo" Motion
-------------------------------------------------
Buenos Aires-based Auxi-Therapia S.A. asked the court's
permission to undergo reorganization by filing a motion for
"Concurso Preventivo" at the city's Court No. 3. Argentine news
portal Infobae relates that Clerk No. 6 aids the court on the
case.


CORREO ARGENTINO: Likely To End In Bankruptcy, Asset Liquidation
----------------------------------------------------------------
Now that the Argentine government has rescinded Correo
Argentino's national postal service concession, it seems that the
first parties to be affected will be the creditors that are
included in Correo's formal restructuring proceeding. The
government took out the firm's main asset, the concession, and it
is now an empty company, with no cash flow at all to meet its
commitments. According to lawyers and accountants polled by daily
El Cronista, the most probable ending for the company is the
bankruptcy and liquidation of assets.

The problem in this case remains the lack of assets. Correo's
main creditors are the State (ARS296 million), the Inter-American
Development Bank and the World Bank (ARS341 million between both
of them), a group of banks led by Galicia, Citibank and Rio
(ARS163.4 million) and Sideco (its controlling company, with
ARS84.3 million).

"A company making a formal restructuring proceeding needs the
acceptance of its creditors and then some activity to generate
cash and comply with the payment offer, which means that if the
company has no activity the most likely path would be the
bankruptcy," said Enrique Kiperman, a specialist in bankruptcies
at the Economic Sciences Professional Association of the Buenos
Aires city.

Correo Argentino made two restructuring proposals, both of which
were rejected by the State. And the term of its formal
restructuring proceeding expired last month.


CORREO ARGENTINO: Govt.'s Decision May Indirectly Affect Sideco
---------------------------------------------------------------
Sideco, the holding that groups most of Francisco Macri's
interests (including 69.2% of Correo Argentino), may be
indirectly affected by the government's decision to rescind
Correo's national postal concession.

Sideco is owned by Socma, a firm controlled by Macri, which owns
95%, and the International Finance Corporation, with 4.4%.

It has already made a restructuring proposal regarding its US$400
million debt. Even though it hasn't yet achieved the necessary
majorities to subscribe an "acuerdo preventivo extrajudicial"
(APE), negotiations would be quite advanced.

An acuerdo preventivo extrajudicial, or APE, is an out-of-court
agreement that needs two-thirds of the creditors' approval to
proceed.

A report issued by Deutsche Bank earlier said, "if Sideco loses
the postal concession, it is possible that [there would be] some
negative effects" during the debt restructuring process.

Sideco billed ARS1.2 billion (US$417.39 million) in 2002, 45% of
which were contributed by Correo Argentino. Excluding the postal
operator's debt, Sideco's liabilities fell from US$400 million to
US$170 million.

The holding's restructuring offer had been qualified as one of
"the most imaginative ones", since it put shares in Sideco Brazil
as a guarantee, and the most satisfactory to creditors, amongst
all offers made by Argentine firms after the devaluation of the
Argentine peso.


CRESER CREDITO: Court Reschedules Reorganization
------------------------------------------------
Buenos Aires Court No. 22 reset the reorganization schedule of
Creser Credito y Servicio S.A., reports local news portal
Infobae. The city's Clerk No. 43 assists the court on this case.

The credit verification period is extended until December 15 this
year. The Company retains its receiver, Ms. Cecilia Beatriz
Montelvetti, who will authenticate claims and prepare the
necessary reports.

The receiver will prepare the individual reports after the
verification process is closed. These reports must be submitted
to the court on February 27 next year, followed by the general
report on April 13. The general report is a consolidation of the
individual reports after they are processed at court.

The informative assembly will be held on September 24, 2004. This
is one of the last parts of the reorganization process.

CONTACT:  Ceicila beatriz Montelvetti
          General Urquiza 2134
          Buenos Aires


DESIGN COMPANY: Court Assigns Receiver for Bankruptcy
-----------------------------------------------------
Court No. 18 of Buenos Aires assigned Ms. Elba Bengoechea as
receiver for the bankruptcy of Design Company S.A., reports local
news source Infobae. The receiver will authenticate creditors'
claims until April 9 next year.

The individual reports, which are due for filing May 11, 2004,
are to be prepared upon completion of the verification process.
The receiver will also prepare a general report due for
submission on June 23 next year, after the individual reports are
submitted to the court.

CONTACT:  Elba Bengoechea
          Jose Evaristo Uriburu 1010
          Buenos Aires


DIRECTV LA: File Second Joint Motion To Extend Exclusive Periods
----------------------------------------------------------------
On October 14, 2003, DirecTV Latin America LLC, the Official
Committee of Unsecured Creditors and Hughes Electronics Committee
jointly filed a request to extend the Debtor's exclusive period
to file and solicit acceptances of a Chapter 11 plan.  The
Parties asked the Court to extend the Exclusive Proposal Period
to November 12, 2003 and the Exclusive Solicitation Period to
January 12, 2004.

Since the filing of the Joint Extension Motion, the Parties
continued their negotiation and made substantial progress in
terms of a consensual reorganization plan.  In this regard, the
Parties agree that further extensions are necessary to enable
them to complete these negotiations and, to the extent an
agreement is reached, to document the agreement in a plan and to
prepare an appropriate disclosure statement.  The Parties are
hopeful that a consensual reorganization plan and an accompanying
disclosure statement can and will be filed by the deadline.

At the Parties' behest, the Court extended the Exclusive Proposal
Period to and including November 26, 2003 and the Exclusive
Solicitation Period to and including January 26, 2004.

Upon the Agreement by the Parties before November 26, 2003, the
Court held that the Exclusive Proposal Period will be extended to
and including a date no later than December 20, 2003.
Accordingly, the Exclusive Solicitation Period will be extended
to and including a date no later than February 18, 2004 without
the need for the Parties to file another Extension Motion.
(DirecTV Latin America Bankruptcy News, Issue No. 15; Bankruptcy
Creditors' Service, Inc., 215/945-7000)


EMERGENCIAS: Seeking Court's Approval on Reorganization
-------------------------------------------------------
Emergencias San Miguel S.A. is requesting permission to undergo
reorganization. Argentine news source Infobae reports that the
Company has submitted its motion for "Concurso Preventivo" at the
city's Court No. 3. Clerk No. 6 assists the court on the case.

CONTACT:  Emergencias San Miguel S.A.
          Avenida Roque Saenz Pe¤a 868
          Buenos Aires


EMERNORT: Submits "Concurso Preventivo" Motion To Court
-------------------------------------------------------
Court No. 12 of Buenos Aires received a motion for "Concurso
Preventivo" filed by local company Emernort S.A., relates local
news portal Infobae. Clerk No. 23 assists the court on the case.

If the motion is approved, the court will assign a receiver to
oversee the reorganization process. The receiver will verify
creditors' claims and prepare the individual and general reports.

CONTACT:  Emernort S.A.
          Gabriela Mistral 2884
          Buenos Aires


HILASA: Court Orders Bankruptcy
-------------------------------
Argentine plastics manufacturer Hilasa S.A. entered bankruptcy on
orders from Buenos Aires Court No. 6, which is under Judge
Ferrario's jurisdiction. The ruling comes after the Company's
creditor filed a bankruptcy petition for nonpayment of debt.

The court assigned Ms. Sanda Dallo as the Company's receiver. She
will verify creditors' claims until March 9 next year. She is
also in charge of the preparation of the individual and general
reports. However, the source did not reveal whether the court has
set the filing deadlines for these reports.

CONTACT:  Hilasa S.A.
          2nd Floor, Office 17
          Ave Corrientes 4006
          Buenos Aires

          Sandra Dallo
          8th Floor, Office C
          Tucuman 1711
          Buenos Aires


JUAN SALE: Court Approves Reorganization Petition
-------------------------------------------------
Juan Sale Agricola Motor S.A. will undergo reorganization after
its "Concurso Preventivo" motion is approved by Court No. 1 of
the Civil and Commercial Tribubal of La Plata in Argentina. The
court assigned Mr. Juan Mauricio Siesaransky as the Company's
receiver.

The credit verification period ends December 23 this year.
Creditors are advised to present their claims to the receiver for
authentication before the said date.

The receiver will prepare the individual reports upon completion
of the verification process. These reports must be presented to
the court on March 30 next year. The receiver will also prepare
the general report, due on May 12 next year, after the individual
reports are processed at court.

The court has set the informative assembly to be held on July 27,
2004, Infobae adds without revealing the specific time and venue
of the said meeting.

CONTACT:  Juan Sale Agricola Motor S.A.
          Del Carmen 800 Ca¤uelas
          La Plata

          Juan Mauricio Siesaransky
          Calle 12 Nro. 718
          La Plata


MEMBRILLAR: Enters Bankruptcy on Court Orders
---------------------------------------------
Buenos Aires Court No. 20 ordered the bankruptcy of local company
Membrillar 66 S.R.L., relates Infobae. The Company's receiver,
Mr. Luis Maria Rementeria, will oversee the bankruptcy process.

The credit verification period ends December 22 this year. This
is done to ascertain the nature and amount of the Company's
debts. After verifications are closed, the receiver will prepare
the individual reports, which are due for filing on March 5 next
year.

The receiver is also required to prepare a general report after
the individual reports are processed at court. This report must
be filed on April 21, 2004. The bankruptcy process will end with
the liquidation of the Company's assets afterwards.

CONTACT:  Luis Maria Rementeria
          Piedras 1319
          Buenos Aires


NORTE LOGISTICA: Court Sets Bankruptcy Proceedings Schedule
-----------------------------------------------------------
Buenos Aires Court No. 2 sets the schedule of the bankruptcy
process of local company Norte Logistica S.R.L., relates Infobae.
The Company's receiver, Mr. Antonio Gargiulo, will prepare the
individual reports after the credit verification is closed on
December 30 this year.

Working with Clerk No. 4, the court ordered the receiver to hand
in the individual reports on March 24, 2004, followed by the
general report on May 5. The general report is prepared after the
individual reports are processed at court.

The Company's assets are liquidated at the end of the process to
reimburse its creditors. Payment distribution will be determined
by the results of the credit verifications.

CONTACT:  Norte Logistica S.R.L.
          Superi 3583
          Buenos Aires

          Antonio Gargiulo
          Uruguay 385
          Buenos Aires


ORGANIZACION FUTURA: Receiver Closes Verification Process
---------------------------------------------------------
Mr. Mario Grieco, receiver for bankrupt ice cream dealer
Organizacion Futura S.A., closes the credit verification process
today. As ordered by Buenos Aires Court No. 4, which handles the
Company's case, the receiver will prepare the individual reports.

Judge Ottolenghi handles the Company's case with assistance from
Dr. Anta, the city's Clerk No. 8, the Troubled Company Reporter -
Latin America reported previously. Local sources, however, did
not reveal the deadlines for the filing of the receiver's
reports.

CONTACT:  Organizacion Futura S.A.
          Perdriel 1278
          Buenos Aires

          Mario Grieco
          2nd Floor
          Ave de Mayo 1260
          Buenos Aires


SOCIEDAD INTERNACION: Files for "Concurso Preventivo"
-----------------------------------------------------
Sociedad Internacion de la Costa S.A., which is based in Buenos
Aires, filed a motion for "Concurso Preventivo" at the city's
Court No. 3, according to a report by local news source Infobae.
Clerk No. 6 aids the court on the case. The source, however, did
not mention whether the court is likely to approve the petition
or not.

CONTACT:  Sociedad Internacion de la Costa S.A.
          Leandro N Alem 449
          Buenos Aires


TANGO FURS: Court Declares the Company "Quiebra"
------------------------------------------------
Buenos Aires Court No. 18 declared Tango Furs S.R.L. "Quiebra".
Infobae related that the court, working with Clerk No. 35,
assigned Mr. Gustavo Daniel Micciulo, to oversee the bankruptcy
process.

The court instructed the receiver to verify creditors' claims
until next April 5, and determine the nature and amount of the
Company's debts. The results of the verification process will be
presented to the court through the individual reports, which are
due for filing on May 18, 2004.

After the individual reports are processed at court, the receiver
will consolidate the data into a general report, which must be
submitted to the court on June 30 next year. The Company's assets
will then be liquidated afterwards to repay creditors. Payments
will be based on the results of the verification process.

CONTACT:  Gustavi Daniel Micciulo
          Ave Cordoba 1417
          Buenos Aires


TEXTIL ARIES: Individual Reports Filing Deadline Today
------------------------------------------------------
Today, November 25, 2004, is the deadline for the filing of the
individual reports for the bankruptcy of Buenos Aires-based
Textil Aries S.R.L., the Troubled Company Reporter - Latin
America reported earlier. The reports were to be prepared by the
receiver, Mr. Jorge Juan Gerchkovich, after the verification
process was closed.

After the individual reports are processed at court, the receiver
will prepare a general report. This report is due for submission
on February 12, 2004. The Company's assets will then be
liquidated to reimburse its creditors.

Buenos Aires Court No. 17 issued the bankruptcy order, the TCR-LA
said earlier. Clerk No. 34 assists the court on the case.

CONTACT:  Jorge Juan Gerchkovich
          Lavalle 1882
          Buenos Aires


TRAINING CENTER: General Report Filing Deadline Expires Today
-------------------------------------------------------------
Mr. Jose M. Nullo, receiver for Buenos Aires-based Training
Center S.A., must submit the general report for the Company's
reorganization today. This report was prepared after the
individual reports were submitted to the court earlier this year.

The city's Court No. 17 handles the Company's case. The court
ordered the informative assembly to be held on June 3 next year,
the Troubled Company Reporter - Latin America earlier revealed.

CONTACT:  Jose M. Nullo
          Suipacha 612
          Buenos Aires



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

AES CORP.: Govt. Moves To Push Through Debt Deal With BNDES
-----------------------------------------------------------
Top-ranking Brazilian government officials are working to make
sure that legal hurdles won't interfere with a debt-rescheduling
agreement between AES Corp. and Brazil's development bank BNDES.

Luiz Pinguelli Rosa, the chief executive of Brazil's federal
electricity holding, Centrais Eletricas Brasileiras, or
Eletrobras, is expected to meet with Mines and Energy Minister
Dilma Rousseff in the next few days to find a final solution for
a legal dispute involving AES assets in Brazil, a spokeswoman at
the ministry said Friday.

Next week, BNDES and AES officials will likely conclude the 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.

Although a Brazilian state court last Tuesday ruled to suspend
the seizure of shares that AES Corp. holds in power utilities
here, paving the way for the conclusion of the debt deal, a key
player said it intends to appeal the decision.

Seeking to get some of their cash back, 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, and in Companhia Energetica de Minas Gerais, or
Cemig, in which AES holds a minority stake.

The U.S. power group, which owns 51% of the company, allowed
Eletronet to default on several payments earlier this year,
leading it to bankruptcy. The remaining 49% is in the hands of
Lightpar, a unit of Eletrobras, which started bankruptcy
proceedings in Eletronet in late April.

During the bankruptcy proceedings, the U.S. power group was held
responsible for BR$ 550 million in debt Eletronet owes to its
creditors. Eletronet owes nearly 90% of its debt to suppliers,
Lucent Technologies Inc. and Furukawa Cabos de Energia, a unit of
Japans Furukawa Electric Co.

As AES refused to pay its debts, Eletronet's creditors, through a
bankruptcy administrator, decided to take legal action in May.
Back then, the court ruled in favor of the creditors, and seized
shares in some AES assets.

After this week's suspension of the seizure of AES-owned shares,
the court also suspended bankruptcy proceedings in Eletronet,
which removes from AES the obligation to pay its debts with
Lucent and Furukawa.

Lightpar will appeal the decision because it believes AES must
foot the BR$ 550 million bill. However, Eletrobras' Pinguelli
said the government will intervene in the case and try to find an
alternative solution.

"Eletrobras has minority shareholders and won't be hit with this
BR$ 550 debt, because that's AES' responsibility," Pinguelli
said, according to a spokeswoman at Eletrobras. "But there may be
other solutions that will respect the interests of BNDES (in
concluding the debt-rescheduling deal with AES) and Eletrobras,"
the executive said, declining to provide details on the
alternative options to avoid further legal hurdles.


CFLCL: Issues Stockholders Report For 3Q03
------------------------------------------
Upon conclusion of the first nine months of 2003, CFLCL stated it
believes it is important to point out the following facts:

CONSOLIDATED ENERGY SALES GREW 8.6%

Consolidated electric energy sales to final consumers of
Cataguazes-Leopoldina (CFLCL) and its subsidiaries CENF,
Energipe, CELB and Saelpa grew 8.6% (3.6% in the concession area
of CFLCL) in the nine-month period ended September 30, 2003,
compared to the same period in 2002, reaching 4,359 GWh. This
volume of energy sold is 2.9% higher than that recorded in the
nine-month period ended September 30, 2000 (period without the
effects of electric energy rationing).

It is important to point out that the volume of energy sales in
the Northeast, specifically by the subsidiaries Energipe, CELB
and Saelpa, showed stronger market recovery after rationing,
compared to sales by CFLCL and CENF, operating in the Southeast.
In relation to the period from January to September 2000 (without
rationing), consolidated sales during the same nine months in
2003 by the subsidiaries operating in the Northeast were 5.2%
higher. In the Southeast, for its part, the volume of energy sold
by CFLCL and CENF was 4.7% lower in relation to the same period
in 2000, without rationing.

REVENUES, CONTROLLABLE EXPENSES AND OPERATING CASH FLOW

Gross Revenue from Sales and/or Services Grew 21.7%: Although
consolidated electric energy sales were 1.7% lower in the 3rd
quarter, compared to the volume recorded in the 2nd quarter of
the current year, CFLCL's consolidated gross revenue from sales
and/or services in the 3rd quarter was R$26,246 thousand higher,
increasing 8.5% from the prior quarter. This performance is
basically due to increases in tariffs by CFLCL, CENF, and partial
increases by Saelpa, whose tariff recomposition took place on
August 28, therefore not having the full effect on CFLCL's
consolidated revenues in the 3rd quarter of 2003.

CFLCL's and CENF's tariffs were readjusted by 33.86% and 35.78%,
respectively, as of June 18, while Saelpa's tariffs were adjusted
by an average 33.40%. This subsidiary's tariff increases vary
between 31.65% (residential) and 37.42% (industrial - high
voltage).

In the nine-month period ended September 30, 2003, CFLCL's
consolidated gross revenue from sales and/or services reached
R$925,274 thousand (R$194,107 thousand in the parent company),
representing a 21.7% increase in relation to the same period in
2002.

Consolidated Controllable Expenses Fell 4.5%: CFLCL and its
subsidiaries have made efforts to rationalize their controllable
operating costs (personnel, material and third-party services)
and added new operating standards. Thus, it was possible to
achieve reductions in these consolidated costs: 10.5% in the 3rd
quarter and 4.5% in the nine-month period ended September 30,
2003, compared to the same periods in 2002, respectively.

Please note that Energipe's controllable expenses in the 1st
quarter of 2003 are affected by extraordinary costs and
indemnities resulting from the staff restructuring program, in
the amount of approximately R$ 2.0 million.

Consolidated Operating Cash Flow Increased 16.7%: In the nine-
month period ended September 30, 2003, CFLCL's consolidated
operating cash flow, measured by EBITDA, was 16.7% greater
compared to the same period in 2002, totaling R$196,196 thousand,
which represents an EBITDA margin of 28.0%.

For purposes of comparing EBITDA in 2003, two facts are worth
highlighting:

1) the consolidated result of CFLCL in the 3rd quarter of 2002 is
increased by R$26,284 thousand, due to the adjustments in the
final amounts of the extraordinary tariff recomposition and
energy transactions in the Wholesale Energy Market (MAE), which
is why EBITDA in the 3rd quarter of 2003 is 7.9% lower in
relation to the same period in 2002. Disregarding these
adjustments made in the 3rd quarter of 2003, EBITDA in that
quarter would be 48.1% higher than that recorded in the 3rd
quarter of 2002;

2) Saelpa's result in the 1st quarter de 2003 was increased by
the reversal of a provision for contingencies and doubtful
debtors in the amount of R$19,040 thousand. This reversal
resulted from debt negotiations with consumers, especially city
governments, which, after the approval of the public lighting
fee, achieved financial capacity to pay their electric energy
bills.

CONSOLIDATED LOSS FALLS 37%, ALTHOUGH THE DEBT PROFILE STILL
IMPAIRS RESULTS

Cataguazes-Leopoldina reduced its consolidated loss by 37% (by
36% in the parent company CFLCL) in the nine-month period ended
September 30, 2003, compared to that recorded in the same period
last year, reaching R$33,042 thousand (R$34,317 thousand in the
parent company CFLCL).

Despite the improvements in operations, the consolidated result
of Cataguazes-Leopoldina still suffered from financial expenses
arising from its indebtedness. Consolidated net financial
expenses in the nine-month period ended September 30, 2003 were
R$138,744 thousand, compared to R$165,753 thousand in the same
period in 2002.

Conclusion of Debt Restructuring Program: CFLCL and its
subsidiaries Energisa, CENF, Energipe, CELB and Saelpa published,
on October 29, 2003, a Significant Matter Notice, announcing the
conclusion of the program to restructure its debts, in the amount
of approximately R$750 million, which will allow for making the
maturities of its short-term debts compatible with the respective
cash flows and reduce the current spreads on financial
operations. This program involved the issuance of debentures
(R$130 million), lengthening of bank, supplier and tax debts
(R$14 million), subordinating shareholder debts (R$26 million)
and a capital increase through a private share subscription (R$20
million) in the parent company CFLCL, as well as lengthening of
its subsidiaries' bank, supplier and tax debts, in the amount of
approximately R$560 million, of which R$9 million is owed by
CENF, R$328 million by Energipe, R$8 million by CELB and R$215
million by Saelpa.

Payment of renegotiated short-term bank debts, in the amount of
approximately R$490 million, will be made in up to 54 months
(average of 45 months). Interest on 57% of this amount will be
equivalent to the Brazilian Long-Term Interest Rate (TJLP) + 7%
p.a., and the remaining 43% will be adjusted at an average rate
approximately equal to the Interbank Deposit Certificate rate
(CDI) + 6% p.a.

Debts with energy suppliers and tax debts, in the amount of
approximately R$215 million, were lengthened to up to 120 months,
with an average maturity of 95 months. Of this total, 47% will be
adjusted according to the Broad Consumer Price Index (IPCA), 14%
according to the TJLP - both without interest -, and the
remaining 39% will be adjusted according to the General Market
Price Index (IGP-M) plus interest of 12% p.a.

The current debt restructuring should reestablish short-term
liquidity, necessary for the operations of the Cataguazes
Leopoldina System, substantially reducing the need for
refinancing in coming year.

CONSOLIDATED INVESTMENTS SURPASSED R$153 MILLION AND CAT-LEO
ENERGIA STARTED UP COMMERCIAL OPERATION OF THREE SMALL
HYDROELECTRIC PLANTS (PCHs)

In the nine-month period ended September 30, 2003, CFLCL and its
subsidiaries CAT-LEO Energia, Usina Termel‚trica de Juiz de Fora,
CENF, Energipe, CELB and Saelpa invested R$153,790 thousand in
the expansion of their electric systems (R$120,303 thousand in
the nine-month period ended September 30, 2002), prioritizing
investments in power generation (R$94,475 thousand in the nine-
month period ended September 30, 2003, compared to R$59,622
thousand in the same period in 2002) and reducing commercial
losses. An effort was also made to rationalize investments in
reducing technical losses and in electric systems' reliability.

PERFORMANCE OF SHARES LISTED ON THE SAO PAULO STOCK EXCHANGE
(BOVESPA)

In the nine-month period ended September 30, 2003, CFLCL's class
A preferred shares rose 14.2% on Bovespa, compared to a 36.6%
climb in the Energy Industry Index (IEE). At the end of
September, CFLCL's class "A" preferred shares were quoted at
57.8% of their book value of R$2.37 per thousand shares.


ELETROPAULO METROPOLITANA: Increasing Investments in 2004 & 2005
----------------------------------------------------------------
Eletropaulo Metropolitana, Brazil's largest power distributor,
will up its investments for next year and in 2005, Gazeta
Mercantil.

The Company, a subsidiary of U.S. power giant AES Corp., which
invested BRL206 million this year, said it intends to invest
BRL300 million next year and BRL400 million in 2005. Investments
will be mainly directed at the construction of distribution lines
and substations - including facilities.

According to Ricardo Lima, the vice-chairman of the commercial
division, Eletropaulo also plans to join the support project for
distributors outlined by the national development bank BNDES
(Banco Nacional de Desenvolvimento Economico e Social).

Eletropaulo holds short-term debts of BRL2.5 billion. Between
January and September, the group posted a profit of BRL131
million against a loss of BRL533 million in the same period in
2002. The utility said net revenue totaled BRL4.61 billion in the
first nine months of the year, an 8.4% rise from the same period
of 2002.

As of the end of September, Eletropaulo's net equity was BRL2.24
billion. Eletropaulo supplies electricity to more than 14 million
residents in the metropolitan area of Sao Paulo.

CONTACT:  ELETROPAULO METROPOLITANA
          Avenida Alfredo Egidio de Souza Aranha 100-B,
          13 andar 04726-270 San Paulo
          Brazil
          Phone: +55-11-548-9461, +55 11 5696 3595
          Fax: +55-11-546-1933
          URL: http://www.eletropaulo.com.br
          Contacts:
          Luiz D. Travesso, Chairman and President
          Orestes Gonzalves Jr., VP Finance/Investor Relations


VARIG: Makes First Quarterly Profit Since 1995
----------------------------------------------
Brazilian airline Varig posted its first quarterly operating
profit since 1995, following a reduction in the size of its
fleet, a stable currency and an increase in the number of
passengers on its jets, says Reuters.

Varig, which is in the process of working out a merger with its
main rival TAM, made an operating profit of BRL137 million (US$47
million) in the third quarter. The airline company did not
provide a net profit for the quarter, but considering that it
reported a net loss of BRL291 million for the first half, the
carrier made a loss of about BRL242 million in the June to end-
September period, the report suggests.

For the nine months through September, Varig posted an operating
loss of BRL519.3 million and a net loss of BRL533.4 million, a
vast improvement on the BRL2.1 billion it lost in the same period
last year.

CONTACT:  Viacao Aerea Rio Grandense SA
          Rua 18 Novembro, 800 2 - Andar
          Navegantes
          90240-040 Porto Alegre - RS
          Brazil
          Phone: +55 51 358-7039
          Fax: +55 51 358-7001
          Home Page: http://www.varig.com.br



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

LE MANS: Auction To Take One Year, Says Auditor
-----------------------------------------------
The auditor appointed by Chile's insurance and securities
controlling bureau, SVS, at troubled life insurance company Le
Mans Desarrollo will take a year to auction its life annuities
portfolio, informed SVS' leader Alejandro Ferreiro.

Fernando Perez, who has been in charge of auditing the company
from when the SVS noticed it had a net asset deficit of CLP10
billion until the watchdog decided to liquidate the firm, will be
in charge of the auction process. Le Mans belonged to the
bankrupt financial holding Inverlink, who became involved in a
corruption scandal and a number of frauds.

Ferreiro said that according to SVS' calculations, Le Mans'
resources are only enough pay pensions during 12 to 14 years and
so the insurance company that offers to manage and pay these
pensions during the longest term possible will be awarded the
portfolio.


MADECO: Fitch Ups Bond Rating to `BB+'
--------------------------------------
Fitch Ratings upgraded the bonds issued by Chilean copper and
aluminum products manufacturer Madeco (NYSE: MAD) to BB+ from BB,
reports Business News Americas. The outlook on the bonds remains
stable, Fitch added.

The upgrade came after the Company narrowed its losses in the
third quarter to CLP454 million (US$700,000) from last year's
third-quarter loss of CLP18.6 billion.

According to its third quarter filing, the Company has about
US$95 million of bonds outstanding.

The improved financial status of the Company is the result of an
equity increase, and the reduction and rescheduling of its debt,
the agency said.

Madeco, controlled by Chile's Luksic group, began a long-term
plan this year to restructure itself at home as well as at its
Brazilian and Argentine units.

The Company also has operations in Peru.


VIDA PLENA: Needs At Least $9M Capital Injection, Says Regulator
----------------------------------------------------------------
The affiliates of Chilean health insurer Vida Plena are now faced
with financial trepidation due to the ongoing ailing condition of
Vida Plena, Business News Americas indicates.

As of end-October, Vida Plena held a deficit totaling CLP1.8
billion (US$2.86mn) with debts estimated at over CLP10 billion.
Chile's health care regulator Manuel Inostroza suggested that the
insurer's financial condition is set to deteriorate unless a
minimum capital injection of US$9 million is forthcoming.

If no capital injection is determined in the short-term, the
regulator will look for a definitive solution to halt the "
uncertainty affecting the affiliates," Inostroza added.

Vida Plena is the former health insurance subsidiary of Chilean
financial group Inverlink, the focus of ongoing corporate theft
and corruption-related legal proceedings. The group is being
liquidated as part of the process to reimburse creditors.

Inverlink trustees agreed to sell Vida Plena to investment
consortium Issis in September, basing their decision on the
consortium's financial credibility.

However, the consortium, made up of local group Larchmont and
Swedish investors, reneged on the terms of the acquisition based
on its failure to comply with the payment quotas and to come
through with a promised US$2.9 million capital increase.

Chile's private health care regulator subsequently intervened
Vida Plena based on its then CLP1.2 billion peso equity
shortfall.

In October, Inverlink trustees announced the renewed sale of Vida
Plena.



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

* Colombia Amends Procedures, Extends Bonds Offer Deadline
----------------------------------------------------------
Colombia has amended the procedures and extended the deadline for
its 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 (the "Invitation").

The Invitation procedures are amended so that if noncompetitive
offers are submitted with respect to greater than U.S.
$250,000,000 principal amount of Old Bonds, Colombia will accept
all of the noncompetitive offers submitted, if it accepts any
offers.

In order to provide investors with additional time to submit
their offers, Colombia has decided to extend the Invitation so
that offers to exchange may be submitted or withdrawn until 5:00
P.M., New York City time, on Wednesday, November 26, 2003. The
results of the auction will be announced at or around 5:00 P.M.,
New York City time, on November 28, 2003. The Settlement Date for
the Invitation is expected to be December 5, 2003.

Copies of the prospectus; prospectus supplement; supplement to
the prospectus supplement, the prospectus and the letter of
transmittal; and the related letter of transmittal may be
obtained from the exchange offer website at
http://www.ubs.com/colombia-exchange,or from D.F. King & Co.
Inc., 48 Wall Street, 22nd floor, New York, NY 10005, as the
Information Agent or from UBS Securities LLC, as the dealer
manager, 677 Washington Boulevard Stamford, CT, 06901 attention:
Liability Management Group.

The securities codes for the Old Bonds are:

  CUSIP              ISIN                   Common Code
195325AT2         US195325AT29               010465834


CONTACT:  Tom Long of D.F. King & Co., Inc.
          Phone: +1-212-493-6920
          Homepage: http://www.dfking.com/



===================================
D O M I N I C A N   R E P U B L I C
===================================

* IDB Approves $6M Loan To Dominican Republic
---------------------------------------------
The Inter-American Development Bank announced Thursday the
approval of a $6 million loan to the Dominican Republic to
support policy measures to strengthen its financial system,
including inspections of all Dominican banking institutions.

The loan will assist the Dominican government's efforts to define
a financial support program with the IDB and the World Bank. It
will also support a Dominican macroeconomic program that will
facilitate an agreement with the International Monetary Fund to
bolster the economy after a financial crisis triggered by the
collapse of one of the country's biggest banking groups.

The inspections will assess the Dominican banking groups'
structure and solvency, as well as the quality of their
accounting practices. The Dominican Banking Superintendency,
supported by specialists, will analyze the integrity of the
financial institutions' information systems, their internal
controls on deposits, cancelled or non-performing loans and loans
granted to banking group affiliates.

The program will be carried out by the Central Bank of the
Dominican Republic, the Banking Superintendency and Banco
Nacional de la Vivienda, a state-owned housing bank, which will
receive technical assistance to facilitate its transformation
into a second-tier institution.

The new loan reflects the IDB strategy of supporting programs to
strengthen bank supervision, the information systems used by
monetary authorities and the Dominican financial system's
prudential regulations.

The loan was granted for a 20-year term, with a three-year grace
period and at a variable interest rate. The local counterpart
funds will total $600.000 for this program.




               ***********


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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Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and Oona
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Copyright 2003.  All rights reserved.  ISSN 1529-2746.

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