TCRLA_Public/031201.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Monday, December 1, 2003, Vol. 4, Issue 237

                          Headlines


A R G E N T I N A

AEROLINEAS ARGENTINAS: Vows To Appeal US DOT Resolution
AGUAS ARGENTINAS: Suez Slams Report On Concession Ultimatum
ARCOR: Reaches Debt Accord With Rio Cuarto Province
BACK SWING: Court Approves Reorganization Petition
BANCO FRANCES: Argentine S&P Rates $1B of Bonds `raBB+'

BANCO GALICIA: Banking Agency OK's CB To Extend Debt Expiration
CAFRE: Court Declares Company Bankrupt
DIAMETRO: Receiver Verifies Credit Claims in Bankruptcy Process
FRANCI: Receiver Closes Verifications Today
GRUPO EDITORIAL: Creditor's Bankruptcy Motion Approved

HENNING: Court Approves Reorganization Petition
LA ELENA: Individual Reports Due Today
LATC: Court Assigns Receiver To Manage Reorganization
LATINSPORT: Enters Bankruptcy on Court Order
MADERFLOOR: Bankruptcy Process Schedule Set

METALMECANICA EZEIZA: Files For Voluntary Reorganization
MIS AMIGOS: Receiver Concludes Claims Check For Bankruptcy
SIRMET: Credit Verification Period in Bankruptcy Expires Today


B R A Z I L

ENRON: Gas Natural Agrees To Buy Stakes in Brazilian Utilities
NET SERVICOS: Reveals $41M Investment Plan for Next Year
SABESP: Announces Dividend Payment
TELEMAR: Details Interest on Capital Payments


C H I L E

VIDA PLENA: Chilean Court Declares Company Bankrupt


C O L O M B I A

AVIANCA: Must Resolve Conflict With Union To Keep Its Routes


E C U A D O R

BANCO DEL PACIFICO: Opening More Branches While Awaiting Buyer
PETROECUADOR: Awards $54M Rig Contracts to Six Companies
PETROECUADOR: Seeks $36M Loan From CAF to Fund Refinery Projects


J A M A I C A

TCRL: Creditor Claims Filing Deadline Today


M E X I C O

DEFIANCE MINING: Sells Mexican Subsidiaries
MICARE: Parent Moves to Assist in Bankruptcy Emergence


V E N E Z U E L A

ORINOCO IRON: Taking Slow Steps in Debt Restructuring


     - - - - - - - - - -


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

AEROLINEAS ARGENTINAS: Vows To Appeal US DOT Resolution
-------------------------------------------------------
Aerolineas Argentinas S.A. remains defiant over a resolution
issued by the U.S. Department of Transportation on Wednesday
imposing sanctions on the Argentine carrier, says Dow Jones.
Aerolineas, which is owned by the Spanish Group Marsans, stated
its decision to appeal the DOTs resolution requiring it to pay an
extra US$0.65 for every peso it pays in landing fees at Ezeiza
airport in Buenos Aires.

The DOT imposed the measure following complaints filed by
American Airlines Inc. parent AMR Corp. (AMR), FedEx Corp. (FDX),
United Airlines Inc. (UAL) and United Parcel Service Inc. (UPS).
The measure seeks to compensate the U.S. carriers for the
competitive advantage that accrues to Aerolineas from the fee
structure applied by Argentinas airport operator, the privately
owned Aeropuertos Argentinas 2002 SA.

The fees charged to Argentina-based carriers, including
Aerolineas, are now denominated in devalued pesos, in keeping
with the broad "pesification" of local contracts that the
government imposed after the devaluation of the local currency in
January 2001. At ARS2.985 to the dollar, the peso is currently
66% lower than it was before its one-to-one peg to the U.S.
dollar was abandoned at that time.

The U.S. carriers argue that the differentiation in fees is a
breach of air transport agreements between the U.S. and
Argentina. But Aerolineas argued that it should not be punished
when it is only abiding by Argentine law.

In a statement Thursday, Aerolineas called the DOTs resolution "a
violation of Argentina's judicial sovereignty."

The Company noted that the resolution still requires approval by
the White House but vowed in the meantime to appeal to a U.S.
court, signaling that it "will not permit itself to become a
hostage in this situation."


AGUAS ARGENTINAS: Suez Slams Report On Concession Ultimatum
-----------------------------------------------------------
French utility company Suez SA (SZE) indicated Thursday that
there's no truth to a report that the Argentine government has
given it an ultimatum to resume investment at its local water
subsidiary Aguas Argentinas SA or see its concession contract
rescinded, says Dow Jones.

"There is no ultimatum," a spokesman for Suez's water and waste
management division said. "Talks are continuing."

Argentine daily La Nacion reported earlier that government
officials have threatened to rescind Aguas Argentinas' concession
unless the French parent agrees to drop court claims and invest
ARS100 million over the next year in its local affiliate.

Aguas Argentinas, as well as two other Suez Argentine
subsidiaries - Aguas de Santa Fe and Aguas Cordobesas - are
currently battling high debts in dollars but are billing for
their services at frozen rates in the weakened peso.

Suez has lodged complaints with the World Bank's arbitration
court and is pursuing parallel, direct talks with the Argentine
government, says Dow Jones.

In the meantime, in order to avoid piling up more losses, Aguas
Argentinas has mothballed investment and defaulted on debt
payments.

CONTACT:  SUEZ
          Media:
          Antoine Lenoir
          Phone: +331-4006-6715
                 or
          Investors:
          Arnaud Erbin
          Phone: +331-4006-6489
                 or
          Belgium
          Guy Dellicour
          Phone: +322-507-02-77


ARCOR: Reaches Debt Accord With Rio Cuarto Province
------------------------------------------------------
Argentine food producer Arcor has arrived at an agreement with
the municipal government of Rio Cuarto (province of Cordoba) to
repay a ARS1.2 million (US$410,000) tax debt. Arcor will cancel
the debt in four ARS300,000-installments.


BACK SWING: Court Approves Reorganization Petition
--------------------------------------------------
Buenos Aires Court No. 16 approved a petition for reorganization
filed by local company Back Swing S.A., relates Argentine news
source Infobae. Assisted by Clerk No. 32, the court assigned Ms.
Rosa Santos as the Company's receiver.

Credit verifications will be held until March 5, next year. The
receiver will relay to the court the verification results through
the individual reports due on April 21. She will also be
responsible for the general report to be filed on the following
June 3.

The informative assembly, to be held on February 16, 2005, will
signal the conclusion of the reorganization process.

CONTACT:  Rosa Santos
          Ave Corrientes 6031
          Buenos Aires


BANCO FRANCES: Argentine S&P Rates $1B of Bonds `raBB+'
-------------------------------------------------------
A total of US$1 billion worth of corporate bonds issued by
Argentine company BBVA Banco Frances S.A. is rated `raBB+' by the
local arm of Standard & Poor's International Ratings, Ltd.,
according to the country's securities regulator, Comision
Nacional de Valores.

The rating, issued on Thursday, was based on the Company's
finances as of September 30, 2003. It denotes somewhat weak
protection parameters relative to other Argentina 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 business, financial or
economic conditions, according to the rating agency.

The rating applies to bonds called "Programa de Obligaciones
Negociables", with undisclosed maturity date. These were
classified under "program", the CNV said.


BANCO GALICIA: Banking Agency OK's CB To Extend Debt Expiration
---------------------------------------------------------------
Argentina's banking agency authorized the central bank to give
Banco de Galicia y Buenos Aires S.A., a unit of Grupo Financiero
Galicia SA, extension to pay more than ARS4 billion in long-
outstanding discount loans, reports Dow Jones.

On Thursday, the Ministry of Economy issued a brief statement
saying that the six-person agency, known as the Financial System
Restructuring Unit, "decided today [Thursday] to authorize the
Central Bank of the Republic of Argentina to extend the term of
expiry for the liquidity assistance debts assumed by Banco de
Galica y Buenos Aires, in terms of Decree 1262/03."

The decree mentioned in the statement makes clear that Thursday's
authorization decision amounts to government approval for Galicia
to enter into a matching program. The arrangement will allow the
troubled bank to apply income from its vast holdings of
government debt to the repayment of its discount loans to the
central bank over a period of 120 months, Dow Jones suggests.

The decree also suggests the government has given its nod to the
banks preliminary accord this week with its creditors committee
to restructure around US$1.4 billion in defaulted foreign debt,
the report adds.

According to the decree, any bank seeking to participate in the
matching program must first obtain approval to do so from the
restructuring unit, which is made up of three representatives
each from the Economy Ministry and the central bank. To obtain
that approval it must adopt "a plan of transformation and
reorganization to strengthen its efficiency and viability" and
that plan itself must be approved by the unit, the decree says.

The decision also implies that the central bank will separately
give its approval for the debt restructuring process in the days
ahead, allowing the bank to release details of its preliminary
accord with creditors and to proceed with the offer to its
creditors as a whole.

"This is very good news for Galicia," a company spokesperson
said, adding that the bank expects to get clearance from the
central bank shortly for its debt restructuring agreement and
that details of that accord should be available Monday. The
offering is expected to include a menu of new bonds, cash and
holding company stock available for creditors in return for
retiring their outstanding Banco Galicia bonds.

The matching program will help Galicia put an extremely difficult
period behind it. The bank was one of the hardest hit during the
financial crisis of 2001 and 2002, losing ARS4 billion from
deposits in those two years as panicked investors withdrew their
funds en masse. That forced it to turn to the central bank for
liquidity assistance in the form of discount loans that it has
since been unable to repay. Even though deposits have stabilized
and the banks quarterly loss rate has fallen, Galicia's
operations are still deeply in the red, leaving it no room to
repay its debt to the central bank.


CAFRE: Court Declares Company Bankrupt
--------------------------------------
Court No. 4 of Buenos Aires ruled that Cafre S.A. is "Quiebra",
effectively putting the Company under bankruptcy protection. A
report by Argentine news portal Infobae indicates that the Mr.
Ernesto Monti was designated as receiver to oversee the
bankruptcy process.

Creditors are required to present their proofs of claim to the
receiver for verification before February 23, 2004. This is done
to determine the nature and amount of the Company's debt, and to
check the claims' authenticity. Results will be submitted to the
court as individual reports. The receiver is also required to
prepare the general report.

CONTACT:  Cafre S.A.
          Carlos Pellegrini 675
          Buenos Aires

          Ernesto Monti
          Larrea 785
          Buenos Aires


DIAMETRO: Receiver Verifies Credit Claims in Bankruptcy Process
---------------------------------------------------------------
Mr. Mauricio Nudelman will review and authorize creditors' claims
for the bankruptcy of Buenos Aires-based company Diametro S.A.,
reports La Nacion. Creditors must present their proofs of claim
to the receiver before the February 5, 2004 deadline expires.

Buenos Aires Court No. 23, under Judge Villanueva, issued the
bankruptcy order approving a petition filed by one of the
Company's creditor for nonpayment of debt. Clerk No. 46, Dr.
Robledo, assists the court on the case, La Nacion adds.

CONTACT:  Diametro S.A.
          Ave Saenz 1371
          Buenos Aires

          Mauricio Nudelman
          2nd Floor, Office 22
          Tucuman 1539
          Buenos Aires


FRANCI: Receiver Closes Verifications Today
-------------------------------------------
Mr. Carlos Giacobini, receiver for Junin-based company Franci
S.R.L., will close the verification process for the Company's
bankruptcy today. The receiver will start preparing the
individual reports, as ordered by Court No. 2 of the Civil and
Commercial Tribunal of Junin.

The court requires the individual reports to be filed by February
20, 2004. The receiver will then consolidate the results of the
individual reports after these are processed at court into a
general report, which is due for filing on March 20 next year,
the Troubled Company Reporter - Latin America reported earlier.

CONTACT:  Franci S.R.L.
          San Martin 408
          Junin

          Carlos A Giacobini
          Av Arias 81
          Junin


GRUPO EDITORIAL: Creditor's Bankruptcy Motion Approved
------------------------------------------------------
Banco Comafi S.A. successfully sought for the bankruptcy of Grupo
Editorial Shalom S.R.L., reports Argentine newspaper La Nacion.
The bankruptcy proceeds with Grupo Editorial's receiver, Ms.
Alicia Kurlat, verifying creditors' claims until February 16,
2004.

Buenos Aires Court No. 18 handles Grupo Editorial's case with
assistance from Clerk No. 36, Dr. Vivono. Grupo Editorial's
assets face liquidation at the end of the process.

CONTACT:  Grupo Editorial Shalom S.R.L.
          Almirante Solier 1139
          Buenos Aires

          Alicia Kurlat
          10th Floor, Room A
          Carlos Pellegrini 1079
          Buenos Aires


HENNING: Court Approves Reorganization Petition
-----------------------------------------------
Judge Ballerini of Buenos Aires Court No. 24 approved the
petition for "Concurso Preventivo" filed by Henning S.A., reports
Argentine news portal Infobae. The Company will undergo
reorganization with Mr. Eduardo Cosoli as receiver.

The credit verification period expires on February 24 next year.
The receiver will prepare the individual reports after
verifications are closed. The receiver is also responsible for
the preparation of the general report.

Clerk No. 47, Dr. Medina, assists the court on the case.

CONTACT:  Henning S.A.
          Cerrito 512
          Buenos Aires

          Eduardo Cosoli
          1st Floor, Office H
          Lavalle 1948
          Buenos Aires


LA ELENA: Individual Reports Due Today
--------------------------------------
The receiver for Argentine company La Elena S.A. is required to
file the individual reports for the Company's bankruptcy today.
The receiver, Ms. Silvana Beatriz Vescio, prepared the reports
after the credit verification period expired earlier this year.

The receiver will prepare the general report after the individual
reports are processed at court. This report is to be filed at the
court on February 18 next year. The Troubled Company Reporter -
Latin America earlier reported that the informative assembly will
be held on August 5 next year.

The Civil and Commercial Tribunal of Rosario in Santa Fe approved
the Company's "Concurso Preventivo" motion, making way for its
proposed reorganization, the TCR-LA revealed. The province's
Court No. 3 holds jurisdiction over the case.

CONTACT:  La Elena S.A.
          Avenida Pte Peron 7299
          Rosario, Santa Fe

          Silvana Beatriz Vescio
          San Martin 6055
          Rosario, Santa Fe


LATC: Court Assigns Receiver To Manage Reorganization
-----------------------------------------------------
The reorganization of Argentine company Latc S.A. is now in the
hands of the appointed receiver, Ms. Norma Salgado Gomez, an
accountant from Buenos Aires. The receiver's duties include
verifying the authenticity of creditors' claims and preparing the
individual and general reports.

Local news portal Infobae relates that the reorganization begun
after the city's Court No. 17 approved the Company's motion for
"Concurso Preventivo". Clerk No. 34, assists the court on the
case, Infobae adds. However, the report did not indicate the
reorganization schedule.

CONTACT:  Latc S.A.
          Suipacha 370
          Buenos Aires

          Norma Salgado Gomez
          Viamonte 1546
          Buenos Aires


LATINSPORT: Enters Bankruptcy on Court Order
--------------------------------------------
Latinsport S.A., which is based in Buenos Aires, entered
bankruptcy on orders from the city's Court No. 15. A report by
Argentine news source Infobae indicates that Clerk No. 29 assists
the court on the case, which is likely to result in the
liquidation of the Company's assets.

Anibal Atilio Amigo y Asociados takes charge as the Company's
receiver. Claims verification will run until December 22 this
year. Verifications, and the preparation of the required reports
are listed as parts of the receiver's duties.

CONTACT:  Anibal Atilio Amigo y Asociados
          Rodriguez Pena 382
          Buenos Aires


MADERFLOOR: Bankruptcy Process Schedule Set
-------------------------------------------
Buenos Aires Court No. 20, which handles the bankruptcy case of
local company Maderfloor S.A., has set the deadlines for the
bankruptcy proceedings, Infobae relates. Clerk No. 40 assists the
court on the case.

After credit verifications are closed on December 16 this year,
Mr. Julio Ramon Coy, the receiver, will prepare the individual
reports, which are due for filing on March 2 next year. The
general report, which is a summary of the information in the
individual reports after processing at court, must be submitted
on April 16.

The Company's assets will be liquidated at the end of the process
to reimburse its creditors. Payment distribution will be
determined from the results of the verification process.

CONTACT:  Julio Ramons Coy
          Piedras 181
          Buenos Aires


METALMECANICA EZEIZA: Files For Voluntary Reorganization
--------------------------------------------------------
Metalmecanica Ezeiza S.R.L. seeks court permission to undergo
reorganization. A report by Argentine newspaper La Nacion
indicates that the Company submitted a motion for "Concurso
Preventivo" at the city's Court No. 13, which is under Judge
Villar. Clerk No. 25, Dr. Guerri, assists the court.

The Company is under pressure from debts, failing to make
payments since the end of May last year.

CONTACT:  Metalmec nica Ezeiza S.R.L.
          Ave Rivadavia 6836
          Buenos Aires


MIS AMIGOS: Receiver Concludes Claims Check For Bankruptcy
----------------------------------------------------------
Ms. Maria Cenatiempo, receiver for Mis Amigos S.R.L., will
conclude the validation of creditors' claims today. This part of
the bankruptcy process determines the amount and nature of the
Company's debts.

As ordered by the city's Court No. 3, the receiver will prepare
the individual reports, which are to be submitted to the court on
February 16 next year. The general report must follow in March
29.

The court, which works with Clerk No. 5 on the case, is likely to
order the liquidation of the Company's assets at the end of the
process. Proceeds will be used to reimburse the Company's
creditors.

CONTACT:  Maria Cenatiempo
          Ave de Mayo 1365
          Buenos Aires


SIRMET: Credit Verification Period in Bankruptcy Expires Today
--------------------------------------------------------------
Creditors of Buenos Aires company Sirmet S.A. must present their
claims to the Company's receiver, Ms. Stella Maris Alonso, for
verification as the deadline expires today. Claims authentication
is required in order for creditors to qualify for payments to be
made after the Company's assets are liquidated.

The individual reports, which the receiver will now prepare, must
be submitted to Buenos Aires Court No. 21, on February 13 next
year, according to an earlier report by the Troubled Company
Reporter - Latin America.

The court also requires the receiver to prepare the general
report. This report, which includes the receiver's opinions on
the factors that led to the bankruptcy, must be filed at the
court on March 26, 2004.

CONTACT:  Sirmet S.A.
          Paraguay 866
          Buenos Aires

          Stella Maris Alonso
          Montevideo 536
          Buenos Aires



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

ENRON: Gas Natural Agrees To Buy Stakes in Brazilian Utilities
--------------------------------------------------------------
Gas Natural SDG SA, Spain's largest natural-gas supplier, is
poised to become a majority shareholder of Enron Corp.'s holdings
in two Brazilian gas distributors, which serve Rio de Janeiro
state, Bloomberg indicates.

In an emailed statement, the Barcelona-based company said that it
has agreed to buy Enron's 25.39% stake in Cia. Distribuidora de
Gas do Rio de Janeiro SA (CEG), which distributes gas in the city
of Rio de Janeiro.

At the same time, it also agreed to buy Enron's 33.75% stake in
CEG RIO, which distributes gas in the rest of Rio de Janeiro
state. Financial details were not provided.


NET SERVICOS: Reveals $41M Investment Plan for Next Year
--------------------------------------------------------
Brazilian cable television operator Net Servicos announced plans
to invest BRL120 million (US$41mn) in 2004, reports Business News
Americas. According to Net investor relations manager Leonardo
Pereira, between BRL20 - BRL30 million will be spent on digital
television, which the Company considers an important measure to
retain customers in Rio de Janeiro and Sao Paulo.

The Company saw its customer base increase a bit in September,
reaching 1.32 million customers, after nine months of shrinking.
This trend is likely to continue, said Pereira: "It won't be
marvelous, but it will be consistent."

The announcement of the planned investment comes amid struggles
by the Company to resolve some BRL1.3 billion of overdue debts.
Debt negotiations continue "as expected" and are not on hold,
Pereira said.

The Company, which is a unit of Globo Participacoes SA, Brazil's
largest media company, posted a loss of US$25.1 million in the
third quarter, compared with a net profit of US$20.4 million in
the previous quarter.

CONTACT:  Net Servicos de Comunicacao S.A.
          Marcio Minoru Miyakava
          +5511-5186-2811
          minoru@netservicos.com.br

          Lu Yuan Fang
          +5511-5186-2637
          lfang@netservicos.com.br

          Web site:  http://www.netservicos.com


SABESP: Announces Dividend Payment
----------------------------------
Sabesp - Cia. de Saneamento Basico do Estado de Sao Paulo (NYSE:
SBS)(Bovespa: SBSP3), the largest water and sewage utility
company in the Americas and the third largest in the world (in
terms of number of customers), announced Wednesday that in a
meeting held on November 20th, 2003, its Management Bodies
deliberated, pursuant to section 2 of Article 30 of its Bylaws,
the credit and payment of Dividends in the form of Interest on
Own Capital, referring to October 2003, to the holders of shares
on the record date of December 15, 2003.

I - AMOUNT, DATE AND CREDIT AND PAYMENT TERMS

The Dividends as Interest on Own Capital, totaling R$
154,928,903.00 correspond to R$ 5.44 per thousand common shares
and shall be paid no later than 60 days after the 2004 Annual
Shareholders Meeting.

II - WITHHOLDING INCOME TAX

Withholding Income Tax will be deducted from the amount of
payment of Dividends as Interest on Own Capital, pursuant to
current legislation, except for exempt shareholders who prove
this condition prior to January 30th, 2004, by presenting related
documents to the Company at Rua Costa Carvalho 300 - Sao Paulo -
SP, CEP 05429-900, in attention to the Superintendencia de
Captacao de Recursos e de Relacao com Investidores, FI, Sala 267.

III - ATTRIBUTION TO DIVIDENDS

Said Interest on Own Capital are declared in substitution to the
Dividends referring to October 2003 and computed in the
calculation of the mandatory minimum dividends, as provided in
Article 30 - item II, letter "b" of the Companys Bylaws and in
Paragraph 7 of Article 9 of Law #9249/95.

IV - INSTRUCTIONS FOR THE CREDIT AND PAYMENT OF INTEREST ON OWN
CAPITAL

a) The shareholders will have their credits available on the
initial date of payment of such right, as set forth in above item
I, according to their banking account and domicile provided to
Banco Itau S.A..

b) To shareholders whose registry information does not include
either their Individual/Corporate Taxpayers Identification Number
(CPF/CNPJ) or complete banking instructions (bank, branch and
account number), the interest will be credited, pursuant to item
I above, as of the third day after pending information is updated
in the electronic files of Banco Itau S.A.. This can be done
either at any of its branches or by mail sent to "Banco Itau S.A
- Diretoria de Acoes e Custodia" at Avenida Engenheiro Armando de
Arruda Pereira, 707, 9 degrees andar - Jabaquara - CEP 04344-902
- Sao Paulo - SP.

V - EX-DATE

The shares will start being traded ex-interest and ex-dividends
on December 16, 2003 in Bovespa (the Sao Paulo Stock Exchange, in
Brazil).

CONTACT:  SABESP, Sao Paulo

          Helmut Bossert
          Phone: 5511 3388-8664
          Email: hbossert@sabesp.com.br

          Marisa Guimaraes
          Phone: 5511 3388-9135
          Email: marisag@sabesp.com.br

          Home page: www.sabesp.com.br


TELEMAR: Details Interest on Capital Payments
---------------------------------------------
Telemar Norte Leste S/A (Bovespa: TMAR3, TMAR 5 and TMAR6)
announced that the company's Executive Board authorized Interest
on Capital (JCPs) in the amount of BRL79,995,880.92 to be
credited to the Company's shareholders based upon their holdings
as of November 28, 2003.

The Company's relevant bodies will review the following payment
details for ratification by April 30, 2004:

1. Amounts to be credited: Holders on November 28, 2003 of
Ordinary Shares (TMAR3) and Class "B" Preference Shares (TMAR6)
will be allocated JCPs in the gross amount, per thousand shares,
of BRL0.3140, which net of withholding income tax amounts to
BRL0.2669. Shareholders of Class "A" Preference Shares (TMAR5)
will be allocated JCPs in the gross amount per thousand shares of
BRL0.3454, which net of withholding income tax amounts to
BRL0.2936 (both per thousand shares), pursuant to item "4" below.
Any additional amounts paid as JCPs or dividends will be
communicated and credited in due time, according to the rights
attached to each type and class of shares by the Company By-laws;

2. Remuneration of allocated JCPs: The amounts above will bear
interest as follows: (i) from the allocation date (11/28/2003)
through the end of the current fiscal year (12/31/2003) at the
CDI rate for that period; and (ii) from 1/1/2004 through the date
of payment, at the TR rate;

3. Payment: Payment dates will be those established by the
Company's relevant bodies, as reviewed for approval by April 30,
2004;

4. Taxation: The amounts in "i" and "2" above are subject to IRRF
(withholding income tax). To prevent withholding, exempt
shareholders must file documentation at the Banco do Brasil
branch where they bank or another bank by December 1, 2003;

5. Trading Date "ex-JCPs": Shares will be traded "ex-Interest on
Capital" as of December 1, 2003, based on their equity position
as of November 28, 2003.

6. JCPs previously declared: Holders of Company shares as of
September 30, 2003 and October 28, 2003 were allocated JCPs in
the total amounts of BRL150,472,774.50 and BRL300,887,179.00,
respectively, as announced in our notices of September 25, 3004
and October 23, 2003.

CONTACT: TNE - INVESTOR RELATIONS
         Roberto Terziani
         Email: terziani@telemar.com.br
         Tel: 55 21 3131 1208

         Carlos Lacerda
         Email: carlosl@telemar.com.br
         Tel: 55 21 3131 1314

         Fax: 55 21 3131 1155



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

VIDA PLENA: Chilean Court Declares Company Bankrupt
---------------------------------------------------
The Chilean court of Justice declared Vida Plena, the Chilean
health services company, bankrupt, granting a petition from a
creditor of the Company. Local news source El Mercurio relates
that the bankruptcy was requested by Clinica Presbiteriana Madre
y Hijo, a Chilean medical services center, to which Vida Plena
owes more than CLP200 million.

The bankruptcy declaration suspends the auction of the intervened
company and led arbitrator Jorge Torre to say that the sector's
regulator is now likely to distribute the Company's portfolio of
38,000 contributors among the other companies of the sector
instead of selling it directly to an investor.



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

AVIANCA: Must Resolve Conflict With Union To Keep Its Routes
------------------------------------------------------------
Officials of ailing Colombian carrier Avianca were scheduled to
meet with the leaders of unionized pilots Thursday to try to find
a solution to a labor dispute that is causing delays for
passengers, the Associated Press reported.

The meeting was scheduled after Colombia's civil aviation
regulator warned Avianca to resolve the dispute with the
unionized pilots or it will give rival national airlines some of
its routes starting Friday.

"They must put an end to the dispute or face the consequences,"
an unnamed civil aviation spokesman said Thursday. He said those
include the possibility of Avianca losing some of its routes to
other airlines.

Unions have been engaged since last Saturday in what the Company
calls "Operation Turtle," whereby the pilots deliberately cause
delays in flight schedules. Avianca President Juan Emilio Posada
explained that the pilots are flying at the slowest possible
legal and safe speed and choosing the longest flight paths
possible in an effort to cause problems for the Company. This
operation is costing the airline about US$300,000 a day, Posada
said.

The pilots are upset because the government recently approved a
proposal by Avianca to lay off about 100 of its 490 pilots as
part of the troubled airline's restructuring plan.

Avianca filed for bankruptcy protection in the United States in
March seeking to restructure some US$222 million in unsecured
claims by creditors.



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

BANCO DEL PACIFICO: Opening More Branches While Awaiting Buyer
--------------------------------------------------------------
While preparing for its future sale, Ecuador's Banco del
Pacifico, which was taken into government receivership during the
country's 1998-1999 financial crisis, is looking to open five new
offices nationwide before 2005, says Business News Americas.

According to Pacifico's VP Roberto Gonzalez, the bank holds the
required solvency levels for continued operations with the sale
process simply awaiting the green light from the central bank.
The bank has complied fully with all the requirements within the
recovery program as stipulated by the local regulator, Gonzalez
added.

At end-September, the country's central bank completed its
valuation of Pacifico stating that the financial indicators
exceeded the minimum demanded by the local banking regulator.

French investment bank BNP Paribas is charged with managing the
sale of Pacifico under conditions laid down by the International
Monetary Fund (IMF).


PETROECUADOR: Awards $54M Rig Contracts to Six Companies
--------------------------------------------------------
Ecuador's state oil company Petroecuador revealed it has awarded
nine drilling and well reconditioning contracts worth US$54.1
million in its Amazon basin to six companies.

Citing a statement issued by Petroecuador Wednesday, Business
News Americas reports that for integrated drilling services, the
Company awarded China's Sinopec one rig contract worth US$13.1
million and the US' Hardtrade and Pride one contract each worth
US$13.8 million and US$14.3 million, respectively.

For well reconditioning services, Petroecuador awarded local
companies Triboilgas one US$2.02-million rig contract, Perforec a
US$6.45-million contract for three rigs and Dygoil a US$4.35-
million contract for two rigs.

The rigs are needed to help Petroecuador meet its target of
boosting output to 218,000 barrels a day by year-end.


PETROECUADOR: Seeks $36M Loan From CAF to Fund Refinery Projects
----------------------------------------------------------------
Petroecuador is seeking two loans from the Andean Development
Fund (CAF) worth a total of US$36 million for refinery projects
in 2004, reports Business News Americas.

According to a company source, Ecuador's state oil company is
seeking a US$20-million loan to finance a project to replace the
corroded underwater fuel line at the La Libertad refinery as part
of the Company's efforts to secure ISO environmental
certification throughout its terminals and pump stations.

The Company is seeking a further US$16-million loan to finance
the improvement of the isomerization unit at the Esmeraldas
refinery, which is part of Petroecuador's plans to cut diesel
imports by "almost doubling" the present 13,500 barrels a day
production capacity, the source added.



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

TCRL: Creditor Claims Filing Deadline Today
-------------------------------------------
Today, December 1, is the last day for creditors of Town and
Country Resorts Limited (TCRL) to make their claims, according to
an earlier report by the Troubled Company Reporter - Latin
America. The resort moves closer towards completing its
liquidation process.

The resort's liquidator, Sophia Beckord, RadioJamaica indicated
in an earlier report. On December 29, a final meeting of
creditors will be held at Enchanted Gardens in St. Ann at which
time the final accounts of the liquidation will be presented.

TCRL is formerly headed by Opposition Leader Edward Seaga. In
August, Seaga announced that he had decided to liquidate TCRL and
another company Premium Investments Limited (PIL), which both owe
the government more than 100-million dollars in taxes and
penalties.

In a statement, Seaga said he placed PIL into voluntary
liquidation in order that a liquidator can sell its assets to
settle the indebtedness of TCRL.


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

DEFIANCE MINING: Sells Mexican Subsidiaries
-------------------------------------------
Defiance Mining Corporation (TSX: DM) ("Defiance") announced that
it has reached an agreement with a private Mexican company to
sell its Mexican subsidiaries, Geomaque de Mexico S.A. de C.V.
and Mina San Francisco S.A. de C.V. and inter-company debt for
cash payments totaling US$235,000, payable over the next 18
months. The Mexican subsidiaries held the San Francisco gold
mine, which ended mining operations in 2001.

As a result of the sale, Defiance will be relieved of long term
liabilities totaling US$1.9 million, including a US$925,000
surface rights purchase obligation, approximately US$760,000 in
reclamation provisions, and other payables totaling US$246,000.
Defiance will also write down the carrying value of the San
Fransico plant, equipment, parts inventory, and receivables for a
total of approximately US$980,000. The net gain to Defiance will
total US$1.2 million, including the sale price.

At Tasiast in Mauritania, hydrological tests are more than 50%
complete and flow tests to date have shown no depletion in the
water table. Final hydrological results are expected in December.
Metallurgical tests are progressing and the final feasibility
study on the Tasiast project is expected to be completed in the
first quarter of 2004.

CONTACT:  John W. W. Hick, President & CEO
          Tel: (416) 956-7470 x-224
          Email: jhick@defianceminingcorp.com

          J.C. St-Amour, V.P. Corporate Development & CFO
          Tel: (416) 956-7470 x-222
          Email: jcst-amour@defianceminingcorp.com

          URL: www.defianceminingcorp.com


MICARE: Parent Moves to Assist in Bankruptcy Emergence
------------------------------------------------------
Mexican thermal coal producer Micare (Minera Carbonifera Rio
Escondido), which earlier this year reached an agreement with
creditors to reschedule US$152 million of debts over 10 years, is
likely to come out of bankruptcy soon.

Business News Americas relates that the mining company's parent,
AHMSA, said it will go to court within two weeks to have Micare
come out of bankruptcy. In March, AHMSA said the subsidiary's
principal repayments were scheduled to restart after a nine-month
grace period.

Ahmsa itself has US$1.9 billion in defaulted debt payments and
has been in a form of Chapter 11 bankruptcy protection for over
four years.

CONTACT:  AHMSA
          Prolongacion B. Juarez s/n,
          Monclova , Coahuila 25770
          Mexico
          http://www.AHMSA.com
          Phone: +52 86 33 81 72
          Fax: +52 86 33 65 66
          Contacts:
          Alonso Ancira Elizondo, CEO, Vice Chairman, Pres/CEO
          Jorge Ancira Elizondo, Chief Financial Officer
          Manuel Ancira Elizondo, Chief Operating Officer



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

ORINOCO IRON: Taking Slow Steps in Debt Restructuring
-----------------------------------------------------
Alberto Hassan, president of Venezuelan hot briquetted iron maker
Orinoco Iron, said that his company is making slow progress in
its negotiations with creditor banks to restructure US$740
million in financial debt, relates Business News Americas.

"It is a relatively slow process although we have made
significant advances, and we hope by next year to have everything
ready," said Mr. Hassan.

In June this year, Orinoco Iron together with creditor banks
created a commission to outline the terms for the debt
restructuring. The commission's goal is to achieve an agreement
that guarantees continued operations and secures current
employees' jobs. It is also seeking alternatives for
restructuring Orinoco Iron's US$50-million commercial debt.

Puerto Ordaz-based Orinoco Iron is owned 50% by Internacional
Briquettes Holding (IBH), which in turn is controlled by local
steelmaker Sivensa, and 50% by Anglo-Australian resources group
BHP Billiton (NYSE: BHP).



               ***********


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,
Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and Oona
G. Oyangoren, Editors.

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are $25 each.  For subscription information,
contact Christopher Beard at 240/629-3300.


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