TCRLA_Public/031222.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 22, 2003, Vol. 4, Issue 252

                          Headlines

A R G E N T I N A

AOL LATIN AMERICA: Signs Marketing Agreement with Comerxia.com
BANKCORP MEDICAL: Seeks Court's Permission to Reorganize
CARDIOVAS: Receiver Oversees Bankruptcy Process
CARMAN: Court Approves Bankruptcy Petition
CLISA: Argentine S&P Rates $120M of Bonds `raB-'

CORREO ARGENTINO: Estudio Moyano to Act as Receiver in Bankruptcy
DIRECTV LA: Files Third Joint Motion To Extend Exclusive Periods
GEORGINA: Court Orders Bankruptcy
HEMISFER: Court Designates Receiver to Oversee Bankruptcy
JUNCAL AUTOMOTORES: Credit Check in Bankruptcy Ends

LATINSPORT: Receiver Closes Verifications Today
MEMBRILLAR: Credit Verification Period Expires Today
NAHANA: Enters Bankruptcy on Court Orders
NUTRIMENTAL: Court Orders Bankruptcy
TELECOM ARGENTINA: France Telecom Concludes $125M Sale

TELEFONICA DE ARGENTINA: Plans To Sell $510M In Debt in Argentina
TRAKE TRADE: Claims Filing Deadline in Bankruptcy Nears
VAGRA: Files "Concurso Preventivo" Motion at Court
ZEUCAMP: Receiver Closes Credit Verifications Today


B E R M U D A

KWELM: Creditors To Vote On Insurance Early Closure Proposal
LORAL SPACE: Xtar Selects Arianespace To Launch Satellite


B R A Z I L

CEMAR: Aneel Delays Sale Deadline Until Jan 16
PARMALAT GROUP: Seeks to Delay Payment of Brazilian Debt


C H I L E

AES GENER: Extends Expiration Dates of Tender Offers


D O M I N I C A N   R E P U B L I C

* S&P Lowers Long-Term Ratings on Dominican Republic to 'CCC'


M E X I C O

GRUPO IUSACELL: Cofetel To Appeal Move Before Jan 15
GRUPO IUSACELL: Testing Push-To-Talk For Cellular Technology
GRUPO TMM: Files Form RW, Withdrawal of Registration Statement
GRUPO TMM: Reaches Agreement with Bondholders' Committee
TV AZTECA: Fully Funded to Amortize $125M Notes Due Feb. 2004


T R I N I D A D   &   T O B A G O

BWIA: Judge Orders Severance Payment Completion
BWIA: Blames Aircraft Seizure For Worsening Financial Woes

     -  -  -  -  -  -  -  -

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A R G E N T I N A
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AOL LATIN AMERICA: Signs Marketing Agreement with Comerxia.com
--------------------------------------------------------------
AOL Latin America (Nasdaq:AOLA) announced Thursday that it had
signed an agreement with Comerxia.com, a global e-commerce
provider, to continue the expansion of the AOL Latin America
shopping areas through the integration of links and banners that
lead to Comerxia.com's International Mall site. The new shopping
areas will be available immediately, allowing AOL Latin America
members to obtain exciting international gifts for this holiday
season and beyond.

AOL Latin America members in Mexico, Brazil and Argentina will
now have the convenience to purchase a multitude of U.S. products
through Comerxia's extensive list of U.S. manufacturers and
retailers. With almost forty retailers to choose from, members
will have access to leading retailers of clothing, toys,
electronics, household goods and many more. Members fill their
shopping carts and at check-out only need to make one payment
which will include the cost of the product, applicable taxes and
other charges that are required to deliver the product to the
member's doorsteps. Local and international credit cards are
accepted. Comerxia is offering a US$10 discount on the first
order of products through December 24, 2003 in Argentina, Brazil
and Mexico.

AOL Latin America will prominently display the international
shopping and will provide placements for links and banners
throughout all of its services so that members can easily
navigate through the co-branded shopping areas. Under this one-
year agreement, AOLA will receive an insignificant amount of
money and will not receive any revenue from potential e-commerce
transactions.

Eduardo Hauser, Executive Vice President of AOL Services and
Business Affairs of AOL Latin America, said: "Through this
marketing agreement with Comerxia.com, we're providing our
members with access to some of the finest products and services
available anywhere in the world. Our members will now be able to
purchase holiday gifts, provided by highly respected global
manufacturers and retailers, and have them delivered directly to
their homes."

About AOL Latin America

America Online Latin America, Inc. (Nasdaq:AOLA) is the exclusive
provider of AOL-branded services in Latin America and has become
one of the leading Internet and interactive services providers in
the region. AOL Latin America launched its first service, America
Online Brazil, in November 1999, and began as a joint venture of
America Online, Inc., a wholly owned subsidiary of Time Warner
Inc. (NYSE:TWX), and the Cisneros Group of Companies. Banco Itau,
a leading Brazilian bank is also a minority stockholder of AOL
Latin America. The Company combines the technology, brand name,
infrastructure and relationships of America Online, the world's
leader in branded interactive services, with the relationships,
regional experience and media assets of the Cisneros Group of
Companies, one of the leading media groups in the Americas. The
Company currently operates services in Brazil, Mexico and
Argentina and serves members of the AOL-branded service in Puerto
Rico. It also operates a regional portal accessible at
http://www.aola.com.America Online members worldwide can access
content and offerings from AOL Latin America through the
International Channels on their local AOL services.

About Comerxia, Inc.

Comerxia (DoUwantIt.com), is a global e-commerce provider with a
powerful and integrated solution for cross-border trade,
featuring categorization, denied third party screening,
import/export restrictions, merchant-defined alerts,
documentation compliance, and built-in fraud protection with very
little set-up effort and ongoing maintenance. For more
information please visit http://www.comerxia.com


BANKCORP MEDICAL: Seeks Court's Permission to Reorganize
--------------------------------------------------------
Buenos Aires company Bankcorp filed a petition for reorganization
at the city's Court No. 24. Clerk No. 47 assists the court on the
case, Argentine news source Infobae relates. If the "Concurso
Preventivo" motion is approved, the court will assign a receiver
to oversee the reorganization.

CONTACT:  Bankcorp Medical S.A.
          Sarmiento 663
          Buenos Aires


CARDIOVAS: Receiver Oversees Bankruptcy Process
-----------------------------------------------
Buenos Aires accountant Ms. Mirta Calfun de Bendersky will
oversee the bankruptcy of Cardiovas S.A. as receiver. The
Company's creditors must have their claims authenticated by the
receiver before March 1 next year.

Argentine newspaper La Nacion reports that the city's Court No.
23, under Judge Villanueva handles the Company's case. Clerk No.
45, Dr. Timpanelli, assists the court on the case.

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

CONTACT:  Cardiovas S.A.
          Ave Belgrano 3402
          Buenos Aires

          Mirta Calfun de Bendersky
          Humahuaca 4165
          Buenos Aires


CARMAN: Court Approves Bankruptcy Petition
------------------------------------------
Buenos Aires Court No. 26 approved a voluntary petition for
bankruptcy filed by local company Carman S.R.L., reports
Argentine news portal Infobae. The bankruptcy process began with
its receiver, Mr. Carlos Rapetti, verifying creditors' claims.

The credit verification period ends on February 20 next year.
Creditors must have their claims authenticated before the said
date in order to qualify for payments to be made after the
Company's assets are liquidated.

The court requires the receiver to file the individual reports on
April 5, 2004. After these are processed at court, the receiver
will prepare the general report, which is due for filing on May
19 next year.

CONTACT:  Carman S.R.L.
          Cerrito 1194
          Buenos Aires

          Carlos Rapetti
          Echevarria 2670
          Buenos Aires


CLISA: Argentine S&P Rates $120M of Bonds `raB-'
------------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
assigned a `raB-' rating to US$120 million worth of corporate
bonds issued by Argentine company CLISA. The country's securities
regulator, the Comision Nacional de Valores, relates that the
rating was based on the Company's finances as of the end of
September this year.

The bonds were described as "Obligaciones Negociables con
garant¡a (AGO 21-01-03, AD 23-01-03)". These were classified
under `Simple Issue' and will mature on June 1, 2012.

S&P said that an obligation rated `raB' denotes weak protection
parameters relative to other Argentine obligations. The obligor
currently has the capacity to meet its financial commitments on
the obligation. But adverse business, financial, or economic
conditions would likely impair capacity or willingness of the
obligor to meet its financial commitments on the obligations.


CORREO ARGENTINO: Estudio Moyano to Act as Receiver in Bankruptcy
-----------------------------------------------------------------
Argentine accountant Estudio Moyano, Guelman y Asociados will
oversee the bankruptcy process of Buenos Aires company Correo
Argentino S.A., reports local news source Infobae. The accounting
firm will act as the Company's receiver.

Creditors are required to file their claims before April 14,
2004. The receiver will prepare the individual reports after
that. The general report will be prepared after the individual
reports are processed at court.

A recent report by the Troubled Company Reporter - Latin America
indicated that Argentine judge Eduardo Favier Dubois declared
Correo Argentino bankrupt and has forbidden its head, Mr.
Francisco Macri, from leaving the country. The bankruptcy
declaration follows last month's decision by the Argentine
government to strip Correo Argentino of its national postal
concession faulting the Company for poor service and amassing
debts of ARS450 million to the state.

The Company's contract was established in 1997, making it the
world's first fully privatized mail service. It is owned by
Sideco Americana, a consortium run by Macri.

CONTACT:  Correo Argentino S.A.
          Della Paolera 299
          Buenos Aires

          Estudio Moyano, Guelman y Asociados
          Riobamba 1224
          Buenos Aires


DIRECTV LA: Files Third Joint Motion To Extend Exclusive Periods
----------------------------------------------------------------
In light of the filing of the proposed recovery plan and the
disclosure statement, DirecTV Latin America LLC, the Official
Committee of Unsecured Creditors and Hughes Electronics
Corporation agree that the Debtor's Exclusive Proposal Period
should be further extended to and including February 28, 2004 and
its Exclusive Solicitation Period should be extended to and
including April 29, 2004.  The Parties agree that an extension of
the Debtor's exclusive periods is necessary to enable them to
complete the solicitation and confirmation process with respect
to the Plan, unimpeded by any competing plan that might otherwise
be filed.

By this motion, the Parties ask the Court to approve the proposed
extensions.

Judge Walsh will convene a hearing on January 9, 2004 at 9:30
a.m. to consider the request.  Pursuant to Del.Bankr.LR 9006-2,
the Debtor's Plan Filing Period is automatically extended through
the conclusion of that hearing. (DirecTV Latin America Bankruptcy
News, Issue No. 16; Bankruptcy Creditors' Service, Inc., 215/945-
7000)


GEORGINA: Court Orders Bankruptcy
---------------------------------
Buenos Aires Court No. 23 declares local company Georgina S.R.L.
"Quiebra", according to Argentine news source Infobae. Clerk No.
45 assists the court on the case, which will end with the
liquidation of the Company's assets. The court is yet to assign a
local accountant to oversee the bankruptcy process as the
Company's receiver.


HEMISFER: Court Designates Receiver to Oversee Bankruptcy
---------------------------------------------------------
Argentine accountant Nestor Rozemberg was assigned as receiver
for the bankruptcy of Buenos Aires-based Hemisfer S.A., according
to local news portal Infobae. The receiver is examining and
authenticating creditors' claims until February 23, 2004.

Court No. 16 handles the Company's case with assistance from
Clerk No. 31. The court also requires the receiver to prepare the
individual and general reports on the case. The source did not
mention, however, whether the court has set the schedule for the
bankruptcy process.

CONTACT:  Nestor Rozemberg
          Mansilla 3696
          Buenos Aires


JUNCAL AUTOMOTORES: Credit Check in Bankruptcy Ends
---------------------------------------------------
The bankruptcy of local company Juncal Automotores S.A. proceeds
with the closure of the credit verification process today. The
Company's receiver, Mr. Ruben Eduardo Calcagno, who verified
claims, will prepare the individual reports, which are due at the
court on March 5.

Buenos Aires Court No. 22, which handles the Company's case,
requires the receiver to submit the general report on April 20,
2004. This is prepared after the individual reports are
processed.

The city's Clerk No. 43 assists the court on the case, which will
end with the liquidation of the Company's assets to reimburse
creditors.

CONTACT:  Ruben Eduardo Calcagno
          Pieres 161
          Buenos Aires


LATINSPORT: Receiver Closes Verifications Today
-----------------------------------------------
Anibal Atilio Amigo y Asociados, receiver for Latinsport S.A.,
will close the claims verification process for the Company's
bankruptcy today. Verifications, and the preparation of the
required reports are listed as parts of the receiver's duties.

The Troubled Company Reporter - Latin America reported earlier
that the Company, which is based in Buenos Aires, entered
bankruptcy on orders from the city's Court No. 15. Clerk No. 29
assists the court on the case, which is likely to result in the
liquidation of the Company's assets.

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


MEMBRILLAR: Credit Verification Period Expires Today
----------------------------------------------------
The credit verification period for the bankruptcy of Buenos
Aires' Membrillar 66 S.R.L. ends today. This is done to ascertain
the nature and amount of the Company's debts. The receiver will
now prepare the individual reports, which are due for filing on
March 5 next year.

Buenos Aires Court No. 20 ordered the bankruptcy of local company
Membrillar 66 S.R.L., according to an earlier report by the
Troubled Company Reporter - Latin America. The Company's receiver
is local accountantLuis Maria Rementeria.

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


NAHANA: Enters Bankruptcy on Court Orders
-----------------------------------------
Argentine textile maker Nahana S.A. entered bankruptcy on orders
from Buenos Aires Court No. 20, under Dr. Taillade. Local
newspaper La Nacion reports that Dr. Amaya, the city's Clerk No.
39 assists the court on the case.

Creditors are required to have their claims authenticated by the
Company's receiver, Mr. Ricardo Fernandez. The deadline for
claims verification is April 19 next year.

CONTACT:  Nahana S.A.
          Avellaneda 3295
          Buenos Aires

          Ricardo Fernandez
          10th Floor
          Tucuman 1567
          Buenos Aires


NUTRIMENTAL: Court Orders Bankruptcy
------------------------------------
Judge Gutierrez Cabello of Buenos Aires Court No. 7 declared
Argentine company Nutrimental Co. SAIC y F "Quiebra", reports La
Nacion. Clerk No. 13, Mr. O'Reilly, assists the court on the
case.

The court assigned Mr. Roberto Sapolznik as the Company's
receiver with instructions to verify creditors' claims until
April 14 next year. This is done to determine the nature and
amount of the Company's debts. The receiver is also required to
prepare the individual and general reports on the case, but the
source did not mention whether the court has set the filing
deadlines these reports.

The Company's assets will be liquidated at the end of the process
to reimburse creditors. The results of the verification process
will be used as basis for distribution of payments.

CONTACT:  Nutrimental Co. SAIC y F
          7th Floor
          Ave Corrientes 1312
          Buenos Aires

          Roberto Sapolnik
          10th Floor, Office 41
          Parana 851
          Buenos Aires


TELECOM ARGENTINA: France Telecom Concludes $125M Sale
------------------------------------------------------
France Telecom completed Friday the sale of its stake in
Argentina's Telecom Argentina to W de Argentina Inversiones, an
affiliate of Argentine family investment group Los W group.

Business News Americas relates that the US$125-million sale
agreement was announced in September. Prior to the sale, France
Telecom and Telecom Italia held approximately 34% of voting
rights and a 25.5% economic interest in Nortel Inversora, the
holding company that owns 54.7% of Telecom Argentina's share
capital.

Under the agreement, France Telecom and Telecom Italia
contributed their stakes in Nortel to a new company called Sofora
Telecomunicaciones, co-owned on a 50-50 basis by the two European
operators. France Telecom then sold 48% of Sofora to W de
Argentina, along with an option for the purchase of the remaining
2% exercisable at any time between January 31, 2008 and December
31, 2013.

Minority investors hold the other 49% of Nortel. Aside from
Nortel, the other shareholders in Telecom Argentina are
employees, with 4.7%, and the free float, with 40.6%.

CONTACT:  TELECOM ARGENTINA STET - FRANCE TELECOM SA(TELECOM)
          Alicia Moreau de Justo 50, 10th Floor
          Capital Federal (1107) Repoblica Argentina
          Phone: +54 11 4968 4000
          Home Page: http://www.telecom.com.ar

          CONTACTS:
          Pedro Insussarry, Investor Relations Manager
          Alberto J. Ricciardi, Chief Financial Officer
          Elvira Lazzati, Finance Director
          Phone: (5411) 4968-3626/3627
          Fax: (5411) 4313-5842/3109
          Email: inversores@intersrv.telecom.com.ar


TELEFONICA DE ARGENTINA: Plans To Sell $510M In Debt in Argentina
-----------------------------------------------------------------
Fixed-line provider Telefonica de Argentina SA, a unit of Spain's
Telefonica SA, plans to sell ARS1.5 billion (US$510 million)
worth of debt in Argentina to take advantage of favorable market
conditions, according to Bloomberg News. Telefonica Argentina SA,
the country's biggest telephone company, said last month it had a
profit during the first nine months of the year.

CONTACT:  TELEFONICA DE ARGENTINA
          Tucuman 1, 18th Floor, 1049
          Buenos Aires, Argentina
          Phone: (212) 688-6840
          Home Page: http://www.telefonica.com.ar
          Contacts:
          Carlos Fernandez-Prida Mendez Nunez, Chairman
          Paul Burton Savoldelli, Vice Chairman
          Fernando Raul Borio, Secretary


TRAKE TRADE: Claims Filing Deadline in Bankruptcy Nears
-------------------------------------------------------
Creditors of Trake Trade S.A. must file their claims before April
12, 2004. The Company's receiver, Mr. Norberto Markel, will
examine claims to determine the nature and amount of the
Company's debts. Results of the verification process will be used
as basis for payments distribution after the Company's assets are
liquidated.

Buenos Aires Court No. 6 handles the Company's case. Clerk No. 11
assists, relates local news source Infobae.

CONTACT:  Trake Trade S.A.
          Defensa 441
          Buenos Aires

          Norberto Markel
          Tucuman 1657
          Buenos Aires


VAGRA: Files "Concurso Preventivo" Motion at Court
--------------------------------------------------
Buenos Aires Court No. 17 is considering a motion for "Concurso
Preventivo" filed by local company Vagra S.R.L., relates
Argentine news source Infobae. Clerk No. 33 assists the court on
the case.

CONTACT:  Vagra S.R.L.
          Yerbal 2429
          Buenos Aires


ZEUCAMP: Receiver Closes Credit Verifications Today
---------------------------------------------------
Buenos Aires accountant Liliana Noemi Castineira, receiver for
the reorganization of local company Zeucamp S.A., will close
credit verifications today. This part of the reorganization
determines the nature and amount of the Company's debts.

The receiver will not prepare the individual reports, which must
be submitted to the court on March 4 next year. The receiver will
also prepare a general report after the individual reports are
processed at court. This report must be filed on April 20, 2004.

Buenos Aires Court No. 23, which handles the Company's case,
ordered the informative assembly to be held on October 1 next
year.

CONTACT:  Liliana Noemi Castineira
          Tucuman 983
          Buenos Aires



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

KWELM: Creditors To Vote On Insurance Early Closure Proposal
------------------------------------------------------------
The run off of the London based KWELM insurance companies
continues to make good progress as evidenced by the proposal to
be put to creditors in January that an early closure program be
initiated.

As set out in a document currently being circulated to creditors,
early closure offers them the prospect of receiving total
payments ranging between 58% and 76% of sums due. That compares
to average distributions of 47% to date. The level of potential
payout is substantially higher than expected when the original
scheme was put in place 10 years ago.

The early closure proposals envisage that the bulk of the $1.3
billion held for payment to creditors will be paid within two to
three years. The original outline timescale for the run off
extended beyond 2015.

Chris Hughes and Ian Bond, the scheme administrators responsible
for the run off of the businesses, recommend early as being in
the best interests of the general body of creditors, and the
route to the maximum payment within the minimum timeframe.

The KWELM companies are subsidiaries of the failed London United
Investments plc. They comprise Kingscroft Insurance, Walbrook
Insurance, El Paso Insurance, Lime Street Insurance and Mutual
Reinsurance. They specialized in US casualty, professional
indemnity and other liability insurance business, which was
principally written through HS Weavers (Underwriting) Agencies
Limited. Over 90% of the KWELM assets and liabilities are in US
dollars and most of the policyholders are based in the United
States.

Total funds recovered for distribution to creditors now exceed
US$3.1 billion with total ultimate liabilities estimated at
US$5.8 billion, including a US$1.2 billion special margin.

Chris Hughes and Ian Bond explain that they have collected around
89% of potential recoveries and expect that to rise to 97.5% by
the amending scheme effective date. In addition, investment
returns - nearly US$1 billion to date - are now falling in the
wake of lower interest rates and the amount of cash returned to
creditors.

"The main scope for further increases in the level of payment
percentages comes from achieving greater certainty in the total
value of outstanding and contingent claims. As a result, we will
be able to reduce the level of special margin we had built into
our calculations over the years to ensure all creditors are
treated fairly," they say.

The amending scheme being put to creditors in January provides a
mechanism for earlier closure by establishing a bar date expected
to be 29 September 2004 for submitting claims with full
supporting information.

The revised scheme also sets out a "cut-off" or estimation
methodology to evaluate and quantity liabilities. This provides a
framework for determining both current and future claims early -
allowing for a faster run-off and cutting run-off costs by up to
US$75 million.

Court hearings in London on 28 November and on 2 December 2003
paved the way for the amending scheme to be put to creditors.
Each of the five companies has two classes of creditors -
protected and general. Each class of creditor for each company
will vote separately at a series of meetings to be held in London
on 29 January 2004.

For the revised scheme to go ahead, the majority of creditors
voting in person or by proxy in number terms and 75% in value of
claims must vote in favor. If approved by creditors, the amending
scheme would go back to the relevant Court in March 2004 to be
sanctioned and registered before the scheme comes into effect.

Notes to editors:

The major proportion of insurance cover provided by the KWELM
companies was written between 1972 and 1990.

Protected creditors are those who are entitled to compensation
from the Financial Services Compensation Scheme Limited (formerly
the Policyholders' Protection Board) under the Policyholders
Protection Act 1975.

The meetings of KWELM creditors to consider the amending scheme
of arrangement will start at 2:00pm on Thursday 29 January 2004
at the Chartered Insurance Institute, 20 Aldermanbury, London
EC2V 7HY, United Kingdom.

Copies of the proposed amending scheme of arrangement and claims
forms can be obtained via the Creditor Help Des +44 (0) 20 7645
4991 or viewed on the KWELM web site at www.kwelm.com

CONTACTS:  Chris Hughes
           Telephone: +44 (0) 20 7398 2901
           Chris Reynolds
           Telephone: +44 (0) 20 7645 4990

           Caroline Cecil, Caroline Cecil Associates
           Telephone: +44 (0) 7610 4110
           cc@carolinececil.co.uk
           www.carolinececil.co.uk


LORAL SPACE: Xtar Selects Arianespace To Launch Satellite
---------------------------------------------------------
XTAR, a joint venture between Loral Space & Communications
(OTCBB: LRLSQ) and HISDESAT, S.A., announced Thursday that it has
entered into an agreement with Arianespace to launch its XTAR-EUR
satellite aboard an Ariane 5 ECA launch vehicle. The XTAR-EUR
satellite is now undergoing final testing at Space System/Loral
(SS/L) in Palo Alto, CA. The launch of XTAR-EUR is currently
planned for early second quarter 2004.

With its launch arrangements and funding requirements secured,
XTAR expects to begin offering its X-band services to government
users in the United States, Spain, and other friendly and allied
nations in July 2004, shortly after launch and the completion of
in-orbit testing.  Service will commence at the highly desirable
29 degrees East Longitude orbital slot providing a footprint
extending from the Eastern Atlantic to Southeast Asia.

Weighing 3,600 kilograms at launch, XTAR-EUR is based on SS/L's
space-proven 1300 platform and carries twelve wideband and high-
power X-band transponders. The satellite will feature on-board
switching and multiple steerable theater beams that allow X-band
capacity to follow its users as they travel anywhere within the
footprint of the satellite. XTAR-EUR is designed to operate with
existing and planned defense communications terminals around the
world.

XTAR, LLC is a new satellite communications company committed to
serving the needs of U.S., Spanish and allied governments. The
company is a joint venture between Loral, which owns 56 percent,
and HISDESAT, which owns 44 percent.  XTAR is headquartered in
Washington, D.C., and has offices in Madrid, Spain, and Palo
Alto, Calif.

HISDESAT Servicios Estrat‚gicos S.A. is a Spanish company
headquartered in Madrid and incorporated in July 17th, 2001.
HISDESAT's aims are the acquisition, operation and
commercialization of Government-oriented space systems, beginning
with satellite government communications in the X-band and Ka -
band frequencies. HISDESAT is owned jointly by Hispasat, S.A.,
the Spanish commercial satellite services company, INSA (100%
owned by INTA) and the leaders of Spain's space industries: EADS-
CASA Espacio, INDRA and SENER. HISDESAT will provide enhanced
capabilities, including Ka-band, for Spain's defense
applications.

Loral Space & Communications is a satellite communications
company. It owns and operates a global fleet of
telecommunications satellites used by television and cable
networks to broadcast video entertainment programming, and by
communication service providers, resellers, corporate and
government customers for broadband data transmission, Internet
services and other value-added communications services. Loral
also is a world-class leader in the design and manufacture of
satellites and satellite systems for commercial and government
applications including direct-to-home television, broadband
communications, wireless telephony, weather monitoring and air
traffic management.

CONTACT:  LORAL SPACE & COMMUNICATIONS
          John McCarthy
          212-338-5345



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

CEMAR: Aneel Delays Sale Deadline Until Jan 16
----------------------------------------------
Interested bidders for the control of Brazilian power distributor
Companhia Energetica do Maranhao (Cemar) now have until January
16 to present a plan to put the embattled utility back on its
feet and take over its concession for the symbolic price of one
real, relates Dow Jones.

Originally, power sector regulator Aneel had set a deadline of
Dec. 17 for investors to present their proposals. But the
regulator had to postpone the deadline following a legal motion
filed by a disgruntled U.S. bidder in court and a request from
the Mines and Energy Ministry.

Mt. Baker Enterprises L.L.C., the investment company of U.S.-
based Franklin Park Energy, filed a lawsuit against Aneel
claiming the agency didn't give it fair treatment in the bidding
process for Cemar. According to Franklin Park, Aneel disqualified
the U.S. group because it favors local group GP Investimentos,
considered by the regulator the only eligible bidder in the
latest sale process.

The challenge comes as the Brazilian government is taking yet
another crack at selling the power distributor, a unit of U.S.-
based PPL Corp. (PPL).

Saddled with more than BRL800 million in debt, the utility came
under the administration of Aneel after filing the Brazilian
equivalent of Chapter 11 bankruptcy in August last year. At the
time, Cemar failed to renegotiate its debt with creditors. PPL
wrote off its US$317 million investment in Brazil, but officially
still holds Cemar's concession license.

In its most recent attempt to attract buyers for Cemar, Aneel
received proposals from local group GP Investimentos and from Mt.
Baker Enterprises. But the U.S. group was disqualified because it
lacked the financial conditions to take control of Cemar, Aneel
said.

Last week, Franklin Park won an injunction from a federal court
in Brasilia ordering Aneel to allow it to participate in the
bidding process and to give it 30 days to prepare its proposal.


PARMALAT GROUP: Seeks to Delay Payment of Brazilian Debt
--------------------------------------------------------
Parmalat Finanziaria Spa communicates that with regard to the
acquisition of 18.18% of its Brazilian subsidiary company
Parmalat Empreendimentos e Administracao Ltda, negotiations are
still in progress with a view to delaying execution of the
transaction falling due in part on 17 December 2003 and in part
on 22 December 2003.

Parmalat Finance Corporation Limited has not made the repayment
relating to the 17 December 2003 due date.

With regard to the Epicurum Fund, negotiations to establish the
terms and means of liquidation of Parmalat's share in the fund
have been suspended awaiting the outcome of a review by
PriceWaterhouseCoopers.

This review is consistent with the mandate given to
PriceWaterhouseCoopers on 16 December 2003 to review the assets
and liabilities, including derivative contracts and commitments,
of the Parmalat Group, and in particular of its financial
companies, giving priority to the Epicurum and Bonlat positions.

Lazard & Co. Ltd. and Mediobanca have been mandated to assist the
Group in reviewing its economic and financial situation and
capital structure and in the preparation of an eventual financial
restructuring plan. The program of work, expected to be completed
by the end of January 2004, foresees:

1. A review of the Group's capital structure and economic and
financial situation as at the most recent date for which official
figures are available;

2. A review of the type and conditions of the Group's net
financial indebtedness, both towards banks and in the form of
capital market instruments;

3. An analysis of the economic and financial outlook for the
Group's operating companies on the basis of data drawn from the
same sources; and

4. In light of the above, a review to establish whether the
conditions exist for an eventual plan to restructure the Group's
debt and the presentation of guidelines for such a plan.



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

AES GENER: Extends Expiration Dates of Tender Offers
----------------------------------------------------
AES Gener S.A. (the "Company") announced Thursday that it has
extended the expiration dates for its previously announced
separate cash tender offers (the "Tender Offers") for any and all
of its (i) 6% U.S. Senior Convertible Notes due 2005 (the "U.S.
Convertible Notes"), (ii) 6% Chilean Convertible Bonds due 2005
(the "Chilean Bonds") and (iii) 6«% Notes due 2006 (the "Yankee
Notes").

The Company's offers for the U.S. Convertible Notes and the
Yankee Notes have been extended to and will each now expire at
5:00 p.m., New York City time (7:00 p.m., Santiago time), on
January 30, 2004, unless further extended or earlier terminated
pursuant to the terms of each respective offer. The Company's
offers for the U.S. Convertible Notes and the Yankee Notes were
each previously scheduled to expire at 12:00 midnight, New York
City time, on December 22, 2003. The Company's offer for the
Chilean Bonds has been extended to and will now expire at 10:00
a.m., Santiago time (8:00 a.m., New York City time), on January
28, 2004, unless further extended or earlier terminated pursuant
to the terms of such offer. The Company's offer for the Chilean
Bonds was previously scheduled to expire at 2:00 p.m., Santiago
time, on December 18, 2003.

The terms of the offers for the U.S. Convertible Notes and the
Yankee Notes are described in separate Offers to Purchase and
Consent Solicitation Statements, each dated and mailed to
noteholders on November 24, 2003. The terms of the offer for the
Chilean Bonds are described in an advertisement that was
published in Chile in El Mercurio on November 25, 2003 and in an
advertisement that will also be published in Chile in El Mercurio
on December 18, 2003, and the offer for the Chilean Bonds will
only be made pursuant to such advertisements.

The Company has retained Deutsche Bank Securities, Inc. and its
affiliates to act as the exclusive Dealer Manager in connection
with the Tender Offers and as Solicitation Agent in connection
with the consent solicitation. Questions concerning the terms of
the offers for the U.S. Convertible Notes and the Yankee Notes
(collectively, the "U.S. Tender Offers") and the consent
solicitation for the U.S. Convertible Notes and the Yankee Notes
(collectively, the "U.S. Consent Solicitation") may be directed
to Deutsche Bank Securities, attention: Jenny Lie, at (866) 627-
0391 (US toll-free) or (212) 250-7445 (collect). Deutsche
Securities Corredores de Bolsa Limitada is acting as
Administrator in connection with the tender offer of the Chilean
Bonds. Questions concerning the terms and procedures of the
tender offer of the Chilean Bonds may be directed to the
Administrator at (562) 337-7700.

The Company has engaged D.F. King & Co., Inc. to act as the
Information Agent in connection with the U.S. Tender Offers and
the U.S. Consent Solicitation. Documents relating to the U.S.
Tender Offers and the U.S. Consent Solicitation may be obtained
by contacting the Information Agent at (888) 644-5854 (US toll
free) or (212) 269-5550 (collect).

Deutsche Bank Trust Company Americas is the Tender Agent in
connection with the U.S. Tender Offers and the U.S. Consent
Solicitation.

CONTACT:  Daniel Aninat, AES Gener S.A.: (562) 686-8938
          Vanessa Thiers, AES Gener S.A.: (562) 686-8948



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

* S&P Lowers Long-Term Ratings on Dominican Republic to 'CCC'
-------------------------------------------------------------
Standard & Poor's Ratings Services said Thursday that it lowered
it long-term foreign and local currency sovereign credit ratings
on the Dominican Republic to 'CCC' from 'B-'. The outlook remains
negative.

According to Credit Analyst Richard Francis, the Dominican
Republic faces a severe liquidity crisis. "There is a substantial
risk that delays restarting its two-year, US$600 million Stand-by
program with the International Monetary Fund will further depress
investor confidence, lead to additional capital outflows, and
heighten the risk of default to private creditors," said Mr.
Francis. "Public sector external debt service totals nearly
US$900 million in 2004, while the central bank currently holds
less than US$280 million in liquid international reserves," he
added. (Nearly 20% of this debt service is due to private
creditors and, hence, subject to a default, according to Standard
& Poor's.)

Standard & Poor's said that the government is already running
arrears with bilateral creditors, and is applying unorthodox
moral suasion on economic agents to support the foreign exchange
rate. Standard & Poor's estimates that the government's 2004
borrowing requirement will approach 20% of GDP (including
refinancing of central bank certificates of deposit); this gap
will be difficult to fill without multilateral support.

"To date, the government's policy has failed to respond
adequately to the deepening financial and economic crisis," Mr.
Francis noted. "Even if the government successfully presents a
proactive policy strategy to reverse the crisis and reestablish
its programs with multilateral creditors, there is a substantial
risk that poor policy implementation could derail the program
anew, particularly in the run up to the May 2004 presidential
elections," he concluded.

ANALYST:  Richard Francis, New York (1)-212-438-7348



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

GRUPO IUSACELL: Cofetel To Appeal Move Before Jan 15
----------------------------------------------------
Mexico's regulatory body, the Federal Telecommunication
Commission (Cofetel), will appeal the legal measure presented by
cellular telephone company Iusacell to avoid a fine for failing
to fulfill the Fundamental Quality Plan, said Cofetel head Jorge
Arredondo.

Arredondo said that Cofetel has to lodge the appeal before
January 15, 2004. At the same time, he revealed he has already
sent a recommendation to the Transport and Communications
Secretariat (SCT) to fine Telcel and Unefon between 2,000 and
20,000 minimum salaries (approximately US$8,000-80,000) due to
their respective failures to adhere to the plan.

Cofetel would continue to fight to ensure that telephone
companies achieve quality standards in the service, Arredondo
added.

CONTACT:  Mauricio Martinez Gonzalez
          Tel: 01 (52) 55 52 67 45 00
          Email: mmg@jnnr.com.mx

          Carlos Moctezuma
          Tel: 01 (52) 55 51 09 44 00
          carlos.moctezuma@iusacell.com.mx


GRUPO IUSACELL: Testing Push-To-Talk For Cellular Technology
------------------------------------------------------------
A source from Grupo Iusacell revealed that the Mexican mobile
operator is testing push-to-talk for cellular technology on a
Lucent platform, relates Business News Americas.

"We are in the testing phase of the [Motorola and Kyocera]
handsets and it is very likely we will launch service in the
first quarter," the unnamed source said.

"[Push-to-talk] will only be available in the corridors that have
CDMA1xRTT [technology] which is mainly Region 9 [around Mexico
City]," he added.

Iusacell operates a CDMA network in seven of Mexico's nine
cellular regions, but the CDMA1xRTT overlay has only been
deployed in and around Mexico City.

Iusacell, Mexico's smallest mobile operator with about 1.5
million subscribers at the end of the third quarter, is
controlled by Mexican tycoon Ricardo Salinas along with the
country's third largest operator Unefon.


GRUPO TMM: Files Form RW, Withdrawal of Registration Statement
--------------------------------------------------------------
Pursuant to Rule 477 under the Securities Act of 1933, as
amended, application is hereby made by Grupo TMM, S.A. (the
"Registrant") to withdraw the Registration Statement on Form F-4
(Registration No. 333-103268), which was filed with the
Securities and Exchange Commission on February 18, 2003, as
amended (the "Registration Statement").

The Registrant is withdrawing the Registration Statement because
it no longer intends to offer or sell shares in connection with
such Registration Statement. No securities were sold in
connection with the offering under the Registration Statement.

CONTACT:  Thomas C. Janson, Jr., The Registrant's Legal Counsel
          MILBANK, TWEED, HADLEY & MCCLOY LLP
          Tel: (212) 530-5921


GRUPO TMM: Reaches Agreement with Bondholders' Committee
--------------------------------------------------------
Grupo TMM, S.A. (NYSE:TMM)(BMV:TMM A; "TMM") announced it has
reached an agreement on the principal terms of a restructuring
with an ad hoc committee of bondholders representing
approximately 43 percent of its 9 1/2 percent Senior Notes due
2003 and its 10 1/4 percent Senior Notes due 2006 (together, the
"Existing Notes"), in the aggregate principal amounts outstanding
of $176.9 million and $200 million, respectively. The
restructuring will be accomplished through a registered exchange
offer of new senior secured notes ("New Secured Notes") for the
Existing Notes, together with a consent solicitation and
prepackaged plan solicitation.

The New Secured Notes will be senior obligations of TMM, will be
guaranteed by wholly-owned subsidiaries of TMM, and will be
secured by a lien on substantially all assets of TMM and such
guarantors; the New Secured Notes will mature in three years with
an option on the part of TMM to extend the New Secured Notes for
one additional year upon payment of an extension fee. The New
Secured Notes will have a cash coupon of 10 1/2 percent per
annum, payable semi-annually, for the first three years. In
addition, the Company may elect to pay a minimum of 2 percent per
annum in cash interest and the balance through the issuance of
additional New Secured Notes or TMM ADRs. If TMM elects to pay
interest other than in cash, the total interest rate will
initially be 12 percent per annum, increasing to 13 percent per
annum in the third year. TMM will have the right to redeem up to
$150 million of the New Secured Notes at 100 percent of the
principal amount thereof and to redeem the balance of the New
Secured Notes at 101 percent of the principal amount thereof. It
is anticipated that the New Secured Notes will be offered for the
Existing Notes and accrued interest thereon on a dollar-for-
dollar basis. The Company has agreed to pay a five percent
incentive payment, payable in additional New Secured Notes, to
those holders tendering their Existing Notes in the exchange
offer.

Jose Serrano, chairman of TMM, and certain other controlling
shareholders have agreed to support the exchange offer and
prepackaged plan solicitation.

To the extent bondholders have any questions on the proposed
exchange, please contact Martin F. Lewis and Ronen Bojmel at
Miller Buckfire Lewis Ying & Co., LLC, the Company's financial
advisor or Alan D. Fragen and Oscar A. Mockridge of Houlihan
Lokey Howard & Zukin Capital, the ad hoc bondholders' committee's
financial advisor. Akin Gump Strauss Hauer & Feld LLP is legal
counsel to the ad hoc bondholders' committee.

     Martin F. Lewis
     Miller Buckfire Lewis Ying & Co., LLC
     250 Park Avenue
     New York, New York 10177
     Telephone: (212) 895-1805
     Email: martin.lewis@mbly.com

     Ronen Bojmel
     Miller Buckfire Lewis Ying & Co., LLC
     250 Park Avenue
     New York, New York 10177
     Telephone: (212) 895-1807
     Email: ronen.bojmel@mbly.com

     and

     Alan D. Fragen
     Lokey Howard & Zukin Capital
     1930 Century Park West
     Los Angeles, California 90067
     Telephone: (310) 788-5338
     Email: afragen@hlhz.com

     Oscar A. Mockridge Houlihan
     Houlihan Lokey Howard & Zukin Capital
     685 Third Avenue
     New York, New York 10017
     Telephone: (212) 497-4175
     Email: omockridge@hlhz.com

TMM has submitted a Report on Form 6-K to the U.S. Securities and
Exchange Commission, which includes the Term Sheet for the New
Secured Notes and the restructuring, and interested parties are
referred to such filing and the exhibits for a more complete
description thereof. This announcement is neither an offer to
purchase nor a solicitation of an offer to sell Grupo TMM Notes.
The exchange offer and consent solicitation, when made, will not
be made to, nor will tenders be accepted from, or on behalf of,
holders of Existing Notes in any jurisdiction in which the making
of exchange offers and consent solicitations or the acceptance
thereof would not be in compliance with the laws of such
jurisdiction. In any jurisdiction where securities, blue sky laws
or other laws require exchange offers and consent solicitations
to be made by a licensed broker or dealer, the exchange offers
and consent solicitations will be deemed to be made on behalf of
Grupo TMM by the dealer manager or one or more registered brokers
or dealers licensed under the laws of such jurisdiction.

Headquartered in Mexico City, Grupo TMM is a Latin American
multimodal transportation company. Through its branch offices and
network of subsidiary companies, Grupo TMM provides a dynamic
combination of ocean and land transportation services. Grupo TMM
also has a significant interest in TFM, which operates Mexico's
Northeast railway and carries over 40 percent of the country's
rail cargo. Grupo TMM's web site address is www.grupotmm.com and
TFM's web site is www.tfm.com.mx.

CONTACT:  Grupo TMM
          Brad Skinner (Investor Relations)
          Phone: 011-525-55-629-8725
                 203-247-2420
          Email: brad.skinner@tmm.com.mx

          Proa/StructurA
          Marco Provencio (Media Relations)
          Phone: 011-525-55-629-8708
                 011-525-55-442-4948
          Email: mp@proa.structura.com.mx

          Dresner Corporate Services
          Kristine Walczak (General Investors, Analysts and
Media)
          Phone: 312-726-3600
          Email: kwalczak@dresnerco.com


TV AZTECA: Fully Funded to Amortize $125M Notes Due Feb. 2004
-------------------------------------------------------------
TV Azteca, S.A. de C.V. (NYSE: TZA) (BMV: TVAZTCA), one of the
two largest producers of Spanish-language television programming
in the world, announced Thursday it is fully funded to amortize
its US$125 million 10 1/8% note due February 15, 2004.  The
funding entails US$60 million from TV Azteca's cash position and
US$65 million of unsecured financing obtained from private
institutions.

"Our focus on building the necessary cash within an ample
timeframe is oriented to avoid any possible contingency in
meeting our financial obligations," commented Pedro Padilla,
Chief Executive Officer of TV Azteca.

"Our ultimate goal is to increase free cash generation by
gradually reducing our debt and interest expense."

"We will save close to US$13 million annually from amortizing the
note, whereas the new credit, smaller in size and with
substantially lower interest, entails reduced financial outlays,"
added Mr. Padilla.  "This transaction, together with solid
operating perspectives at TV Azteca for the coming year, will
translate into strong expected cash creation for 2004, and
reduced overall risk perception."

The company noted the debt amortization is part of its plan to
allocate a substantial portion of TV Azteca's expected cash
generation within a six-year term to gradually reduce the
company's outstanding debt by an amount of approximately US$250
million, as well as to make distributions to shareholders above
US$500 million within the six-year period. Completion of the plan
implies reduction of the company's yearly interest payments by
approximately US$25 million and a substantial improvement of its
overall capital structure.

TV Azteca is one of the two largest producers of Spanish-language
television programming in the world, operating two national
television networks in Mexico, Azteca 13 and Azteca 7, through
more than 300 owned and operated stations across the country.  TV
Azteca affiliates include Azteca America Network, a new broadcast
television network focused on the rapidly growing U.S. Hispanic
market; Unefon, a Mexican mobile telephony operator focused on
the mass market; and Todito.com, an Internet portal for North
American Spanish speakers.

CONTACT:  TV Azteca, S.A. de C.V.
          Investor Relations: Bruno Rangel
          +011-5255-3099-9167
          jrangelk@tvazteca.com.mx

               or

          Omar Avila
          +011-5255-3099-0041
          oavila@tvazteca.com.mx

          Media Relations: Tristan Canales
          +011-5255-3099-5786
          tcanales@tvazteca.com.mx
          Web site:  http://www.tvazteca.com.mx



=================================
T R I N I D A D   &   T O B A G O
=================================

BWIA: Judge Orders Severance Payment Completion
-----------------------------------------------
Justice Gregory Baker of Bermuda's Industrial Court on Wednesday
ordered national airline BWIA to complete its severance payments
to retrenched workers by January 31, 2004, the Trinidad Express
reports.

"This is an interim order. If you have any difficulties, you
report it and we will deal with it," the judge told Christopher
Abraham, president of the Aviation Communication & Allied Workers
Union (ACAWU).

Judge Baker issued the interim order after ACAWU took BWIA to
court for failing to pay severance benefits to 471 employees who
were retrenched on March 15, 2003.

BWIA's Employee Services Director, Ian Ashman, who represented
the airline told the court BWIA was willing to make a payment of
$4.1 million on Monday, followed by another payment of $1 million
on December 29. He said the airline would settle the outstanding
debt by January 31.

BWIA has already paid off 319 workers some $24.4 million but
still owes $12.75 million to the remaining 158 workers.

Monday's payment of $4.1 million will go firstly to those workers
who are owed $100,000 or less, while the other payments are aimed
at settling all other workers.

At the same time, ACAWU asked the court to impose interest of 25%
on the severance payments. However, Justice Baker deferred that
matter to January 13, to give BWIA time to submit a legal
argument, not later than January 5.

CONTACT:  British West Indies Airways
          Phone: + 868 627 2942
          E-mail: mailto:mail@bwee.com
          Home Page: http://www.bwee.com/


BWIA: Blames Aircraft Seizure For Worsening Financial Woes
----------------------------------------------------------
BWIA blamed the seizure of two aircraft earlier this year by the
International Leasing Finance Corporation (ILFC) for its
deepening financial woes, reports the Trinidad Guardian.

On December 12, BWIA's Director Employee Service, Ian Ashman,
filed an affidavit in the Industrial Court, saying the action was
reported internationally "which had the effect of eroding
confidence of the marketplace and elevating the risk to suppliers
and vendors of doing business with BWIA.

"These factors combined had a significantly negative and
immediate impact on the company's cash flows and viability," the
affidavit said.

ILFC, which owns most of the BWIA fleet, seized the A340 aircraft
for non-payment of a $25 million debt.

The affidavit outlined the ways in which the action further set
back the airline. This included:

- Suspension of all credit arrangements with vendors.

- Immediate requests for increased security deposits by credit
acquirers of US$5 million for risk.

- In addition, because of the increased risk profile of BWIA,
ILFC refused to make a second A340 aircraft available which was
"critical" to the efficient operation of the London route -
identified as the most lucrative of the airline's routes and
pivotal to turning around the current financial woes.




               ***********


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
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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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Information contained herein is obtained from sources believed to
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