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        T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Friday, January 9, 2004, Vol. 5, Issue 6

                          Headlines


A R G E N T I N A

ACINDAR: $100M of Bonds Rated 'D(arg)' by Local Fitch
ALPARGATAS: Fitch Declares Various Bonds In Default
DIRECTV LA: Moves For Solicitation, Tabulation Procedures
EDEMSA: Argentine S&P Assigns Default Ratings To $150M of Bonds
EDITORIAL PERFIL: Fitch Rates Bonds `D(arg)'

GAS ARGENTINO: Moody's Rates $130M of Bonds `D'
PARMALAT ARGENTINA: Parent Company Woes Affecting Local Unit
SCP: $400M of Bonds get `D(arg)' Rating from Local Fitch


B E R M U D A

GLOBAL CROSSING: Seeks Approval of Tekelec Settlement Pact
GLOBAL CROSSING: Seeks Court Approval on Qwest Settlement


B R A Z I L

MRS LOGISTICA: To Increase Capital Expenditures This Year
PARMALAT BRAZIL: Regulators Lodge Own Fraud Investigation
TCP: Extends Conversion Period to Preferred Shareholders


C O L O M B I A

BANCO SANTANDER COLOMBIA: Fitch Withdraws Ratings


E C U A D O R

PETROECUADOR: Extends Concession Bidding Deadline


J A M A I C A

C&WJ: Receives $92M Worth of Loans From Ex-Im Bank, EDC


M E X I C O

UNEFON: TV Azteca Hires Law Firm for Debt Restructuring Advice


U R U G U A Y

GALICIA URUGUAY: Extends Survey to Cayman Branch's Clients
PARMALAT URUGUAY: Local Brass To Meet With Parent Co. Executives


V E N E Z U E L A

PARMALAT VENEZUELA: Government Eager To Assist Company


     - - - - - - - - - -

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A R G E N T I N A
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ACINDAR: $100M of Bonds Rated 'D(arg)' by Local Fitch
-----------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. assigned a 'D(arg)'
rating to a total of US$100 million of corporate bonds issued by
Acindar Industria Argentina de Aceros. Comision Nacional
Valores(CNV), the country's securities regulator, relates that
the rating was based on the Company's finances as of the end of
Sep. 2003.

The bonds were described as "Obligaciones Negociables simples, no
convertibles en acciones, autorizadas por AGO y E de fecha
5.8.96." The bonds are classified under "simple issue" and are
set to mature on February 16, 2004.

The Company is involved in the production of non-flat steel
products such as steel pipe, cable, hot-rolled and cold-drawn
steels for concrete, forged bars and blocks for distributors of
steel products, other steel companies, manufacturers of original
equipment for several industrial sectors including the automotive
and the oil and gas industries and end users, mainly in the
construction and agricultural sectors of the economy. Its
principal market is Argentina, although it exports its products
to Brazil, Chile and the United States, Bolivia and Uruguay
through its sales office, said the Financial Times.

CONTACT:  Acindar Industria Argentina de Aceros SA
          2739 Estanislao Zeballos Beccar
          Buenos Aires
          Argentina B1643AGY
          Phone: +54 11 4719 8500
          Fax: +54 11 4719 8501
          Home Page: http://www.acindar.ar.com
          Contact:
          Arturo Tomas Acevedo, Chairman


ALPARGATAS: Fitch Declares Various Bonds In Default
---------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. assigned default
ratings to various bonds issued by Argentine company Alpargatas
S.A.I. y C.. According to the Comision Nacional Valores,
Argentina's securities regulator, Fitch assigned a `D(arg)'
rating to some US$80 million of bonds described as "Obligaciones
Negociables Subordinadas Obligatoriamente Convertibles en
Acciones Ordinarias ", which matured in July 30 last year. These
bonds were placed under "program".

The rating also applies to the following bonds whose maturity
dates were not disclosed:

- US$81.1 million of "Obligaciones Negociables Serie A por U$S
1.1 millones y Serie B por U$S 80 millones" classified as "Simple
Issue"

- US$40 million of "Eurobonos a Mediano Plazo - Serie X",
classified as "Series and/or Class".

- US$5.1 million of O.N. convertibles classified as "Simple
Issue"

The rating given was based on the Company's finances as of Sep.
30, 2003. Fitch said that the rating is assigned to financial
commitments that are currently in default.


DIRECTV LA: Moves For Solicitation, Tabulation Procedures
---------------------------------------------------------
DirecTV Latin America asks Judge Walsh to approve:

   * the Disclosure Statement supporting its Reorganization Plan;

   * certain procedures for the solicitation and tabulation of
     votes to accept or reject the Plan;

   * the form of notice to be provided;

   * the form of ballots to be used to vote on the Plan; and

   * the procedures for filing Confirmation Objections.

The Debtor also asks the Court to schedule the voting deadline
and the hearing date to consider confirmation of the Plan.

                 Approval of Disclosure Statement

Joel A. Waite, Esq., at Young, Conway, Stargatt & Taylor, LLP
relates that Section 1125 of the Bankruptcy Code provides that
for a disclosure statement to be approved, it must contain
"adequate information," which is defined as information
sufficient to enable hypothetical reasonable investors to make an
informed judgment about the Reorganization Plan to which the
disclosure statement relates.  The Debtor believes that the
Disclosure Statement contains adequate information to enable all
impaired creditors and interest holders to make an informed
judgment with respect to the Plan.  In conjunction with its legal
and financial advisors, the Debtor devoted substantial time and
effort in drafting the Disclosure Statement to ensure compliance
with Section 1125 of the Bankruptcy Code.

                      Solicitation Procedures

The Debtor will solicit votes to accept or reject the Plan from
impaired claimholders.  The Debtor proposes to provide a ballot
form together with the Confirmation Hearing Notice, the Plan and
Disclosure Statement to each claimholder that is to vote on the
Plan in accordance with Section 1126 of the Bankruptcy Code and
Rules 3017 and 3018 of the Federal Rules of Bankruptcy Procedure.
The proposed ballots contain detailed instructions concerning the
completion and submission of Ballots.  The Debtor further
proposes that creditors be directed to submit their executed
ballots directly to Bankruptcy Services, LLC.  Bankruptcy
Services has previously been retained pursuant to a Court order
to serve as the Debtor's balloting agent.  Bankruptcy Services
will tabulate the votes after the Voting Deadline and prepare a
report certifying the results to be presented to the Court at or
before the Confirmation Hearing.

                           Ballot Form

The Debtor presents a proposed form of ballots that is
appropriately tailored to the Plan and complies with Bankruptcy
Rules 3017 and 3018.  Claim amounts set forth by creditors on
their ballots will not be determinative as to the final allowance
of their claims.

               Voting Deadline and Vote Tabulation

The Debtor asks the Court to set a date by which all votes on the
Plan must be received.  In connection with Bankruptcy Services'
tabulation of votes received with respect to the Plan, the Debtor
asks the Court to direct that:

   (a) any votes received by Bankruptcy Services after the Voting
       Deadline not be counted in determining whether the Plan
       has been accepted or rejected;

   (b) any ballots transmitted by e-mail not be accepted;

   (c) any ballot, which is properly executed, but does not
       indicate acceptance or rejected, be deemed to be an
       acceptance of the Plan; and

   (d) any ballot that is not properly executed or on which both
       the acceptance and rejection box is checked be considered
       null and void and not be counted.

In connection with Bankruptcy Services' tabulation of votes
received with respect to the Plan, the Debtor requests that
holders of claims in voting classes that are impaired and have
either (i) been scheduled as liquidated, undisputed, and not
contingent, or (ii) filed a proof of claim that is not subject to
any pending objection by the Debtor, are provisionally allowed
for purposes of voting as a creditor to accept or reject the
Plan.

The amount of a claim used to tabulate acceptance or rejection of
the Plan will be either:

   (a) the claim listed in the Debtor's schedules of liabilities,
       provided that the claim is not scheduled as contingent,
       unliquidated, undetermined or disputed and that no proof
       of claim has been timely filed;

   (b) the non-contingent liquidated amount specified in a proof
       of claim timely filed with the Court or Bankruptcy
       Services to the extent the proof of claim is not the
       subject of a Debtor's objection;

   (c) if a proof of claim has been timely filed and is the
       subject of a Debtor's objection, in the amount provided
       for in the claim objection, if any, or in other amount as
       is temporarily allowed by the Court for voting purposes;
       or

   (d) if a proof of claim has been timely filed by an alleged
       creditor whose claim is not listed or is listed as
       disputed, contingent or unliquidated in the Debtor's
       schedule of liabilities, but who has timely filed a proof
       of claim that is contingent or in an unliquidated or
       unknown amount, and which proof of claim is not the
       subject of a Debtor's objection, in the amount of $1 or in
       other amount as is temporarily allowed by the Court for
       voting purposes.

        Confirmation Hearing Date and Objection Procedures

The Debtor asks the Court to set a date for the Confirmation
Hearing and a date by which any objections to Plan confirmation
must be filed and served on the Debtor and other parties-in-
interest.  Confirmation objections must:

   (a) be in writing;

   (b) comply with the Federal Rules of Bankruptcy Procedure;

   (c) set forth the names of the objecting party and the nature
       and amount of any claim or interest alleged by a party
       against the Debtor or its assets;

   (d) state with particularity the provisions of the Plan
       objected to and the legal and factual basis for the
       objection; and

   (e) be filed with the Clerk of the United States Bankruptcy
       Court for the District of Delaware at 824 North Market
       Street, 3rd Floor, in Wilmington, Delaware, with a copy
       served by other manner as will cause an objection to be
       received no later that 4:00 p.m. prevailing Eastern Time
       on the first business day that is at least seven days
       before the Confirmation Hearing, by the Debtor's counsel,
       Hughes Electronics Corporation, the Creditors Committee,
       and the U.S. Trustee.

Any objection not filed and served as set forth in the proposed
confirmation objection procedures will be deemed waived and not
considered by the Court.

                    Confirmation Hearing Notice

To ensure proper notice of the Confirmation Hearing, the Debtor
proposes to serve a notice to all known creditors, interest
holders and other entitled parties.  The Confirmation Hearing
Notice will be delivered in accordance with the timeframe to be
set by the Court, and will notify:

   (a) the Court's approval of the Disclosure Statement;

   (b) the Voting Deadline established with respect to the Plan;

   (c) the time within which objections, if any, to Plan
       confirmation must be filed and served;

   (d) the time, date and place of the Confirmation Hearing; and

   (e) contact information for any party-in-interest to obtain a
       copy of the Disclosure Statement and the Plan.

The Debtor proposes, in accordance with Bankruptcy Rule 3017, to
provide copies of the Confirmation Hearing Notice, together with
the Plan and Disclosure Statement, to:

   -- all persons or entities that have timely filed a proof of
      claim against the Debtor;

   -- all persons or entities that have not filed a proof of
      claim against the Debtor but who are listed on the Debtor's
      schedules as holding a claim or interest, which is impaired
      under the Plan;

   -- the Creditors Committee; and

   -- the United States Trustee.

Additionally, a copy of the Plan and Disclosure Statement will be
sent to any party-in-interest requesting a copy. . (DirecTV Latin
America Bankruptcy News, Issue No. 17; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


EDEMSA: Argentine S&P Assigns Default Ratings To $150M of Bonds
---------------------------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
issued default ratings to Empresa Distribuidora de Electricidad
de Mendoza S.A.'s corporate bonds, relates the country's
securities regulator, Comision Nacional Valores (CNV). The 'raD'
rating applies to US$150 million worth of bonds called, "Programa
de emision de Obligaciones Negociables simples", the CNV relates.
The bonds are classified under "program" and are set to mature on
April 13, 2005.

The rating, which is based on the Company's finances as of
September 30, 2003, is assigned to financial obligations that are
currently in default, the ratings agency said. The rating is also
used when the obligor has filed for bankruptcy or when interest
or principal payments are not made on the due date, even if the
applicable grace period has not expired, unless S&P believes that
such payments will be made during such grace period.


EDITORIAL PERFIL: Fitch Rates Bonds `D(arg)'
--------------------------------------------
Editorial Perfil's corporate bonds called "Primera serie de
obligaciones negociables" received default ratings from Fitch
Argentina Calificadora de Riesgo S.A., according to the Comision
Nacional Valores, the country's securities regulator. The bonds
were worth a total of US$25 million, and were classified under
"series and/or class". However, their maturity date was not
disclosed.

The ratings agency said that the `D(arg)' rating, which was based
on the Company's finances as of the end of September 2003, is
given to financial commitments that are in payment default.


GAS ARGENTINO: Moody's Rates $130M of Bonds `D'
-----------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. assigned a `D'
rating to corporate bonds issued by Argentine company Gas
Argentino S.A., based on the Company's finances as of September
30, 2003.

The rating, which is assigned to financial obligations that are
in default, applies to a total US$130 million of the Company's
corporate bonds. Argentine securities regulator Comision Nacional
Valores described the affected bonds as "Obligaciones negociables
simples por US$130.000.000". The bonds, which were classified
under "Simple Issue", already matured on June 07, 2000.


PARMALAT ARGENTINA: Parent Company Woes Affecting Local Unit
------------------------------------------------------------
A survey conducted by business daily Infobae among milk producers
that have commercial agreements with Parmalat Argentina revealed
that the relationships are not as calm as local executives say.

Tomas Bohner, a milk producer from the Brandsen area (Buenos
Aires province), denounced Parmalat has failed to accomplish some
of the conditions of the contracts. Mr. Bohner said the Company
hasn't honored either the payment terms or the price per liter of
milk that had been agreed by the parties in written.

He also said Parmalat's operations in its Chascomus plant are
very heavy and that only a few milk producers are willing to sell
to Parmalat nowadays.

Mr. Bohner added that the plant used to process some 600,000
liters of milk a day when it was owned by Gandara, seven years
ago, and it is currently buying only 30,000 liters a day, which
means it is almost out of operation.

Parmalat Argentina rejected these statements saying that the drop
in the activity level has nothing to do with a possible impact of
the crisis of its parent company in Italy but is the result of
the transfer of production of milk and creamy cheese from
Chascomus to the Pilar plant.

The milk producers polled by Infobae said they were operating
carefully, fearing that Parmalat's international crisis may
explode any time. They also think the situation in the Argentine
unit is quite hard to be foreseen. Argentina is not quite the
branch Parmalat would choose to close down in order to obtain
cash, though they don't rule out a possible sale to a
multinational company related to local dairy firms, such as
Dadone or Arla Foods.


SCP: $400M of Bonds get `D(arg)' Rating from Local Fitch
--------------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. assigned a `D(arg)'
rating US$400 million of corporate bonds issued by Sociedad
Comercial del Plata S.A. `D(arg)' relates the Comision Nacional
de Valores, the country's securities regulator. The rating, which
is assigned to bonds that are currently in default, was given
based on the Company's finances as of the end of September last
year. The affected bonds are described as "Obligaciones
Negociables", the CNV relates. These were classified under
"program."



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

GLOBAL CROSSING: Seeks Approval of Tekelec Settlement Pact
----------------------------------------------------------
Paul M. Basta, Esq., at Weil, Gotshal & Manges LLP, in New York,
informs the Court that Tekelec is one of the Global Crossing
Debtors' largest vendors. Tekelec provides the Debtors with
hardware and software products for the transport of voice signals
on their Network in various locations worldwide. The Debtors
entered into a number of separate agreements with Tekelec for the
provision of equipment and support services. The Agreements
provided that the Debtors would purchase a variety of equipment,
software, maintenance, warranties and support from Tekelec over a
period of several years.

In 2001, when the Debtors entered into the Agreements, they
anticipated a large scale build-out of their Network.
Accordingly, the Debtors entered into the Agreements to obtain
the hardware and software necessary for the large expansion.
Since that time, the Debtors have significantly reduced their
operating costs and streamlined their businesses. As a result,
much of the purchased hardware and software is now unnecessary
for the Debtors' ongoing operations.

Specifically, the Agreements are:

(1) World Master Agreement between Global Crossing North America,
Inc. and Tekelec, dated August 2, 2001, which is the master
agreement to all of the other agreements between the parties;

(2) European Supplement Agreement No. 1 to the World Master
Agreement, dated August 3, 2001, between Tekelec and GC Pan
European Crossing Holdings B.V., wherein the Debtors agreed to
purchase $5,100,000 of hardware to support voice signaling
services in Europe;

(3) Letter of Commitment, dated March 30, 2001, between Global
Crossing Ltd. and Tekelec, wherein the Debtors agreed to purchase
$13,600,000 of telecommunications equipment to be used throughout
various locations worldwide;

(4) (a) Tekelec Quote for European Sentinel Monitoring Equipment
and Three Year Millennium Warranty, and the related Support
Services and Millennium Service Plan, and (b) Tekelec Quote for
Tier 3 Custom Extended Warranty including (i) the Tekelec
Standard Warranty and Tekelec Custom Extended Warranty and (ii)
the Tekelec Customer Services Catalog Publication No. 910-0124-
01, pursuant to which Tekelec agreed to provide maintenance,
warranties and support services to the Debtors for the hardware
that they purchased under the other agreements.

A number of different disputes have arisen under the Agreements.
First, under the Commitment Letter, the Debtors agreed to
purchase $13,600,000 of telecommunications equipment from Tekelec
to be used throughout various locations worldwide. Tekelec argues
that the Debtors breached the Commitment Letter by failing to pay
for equipment shipped on October 21, 2001 in connection with the
Debtors' European Network. Similarly, Tekelec contends that the
Debtors breached the European Supplement Agreement No. 1 by
failing to pay for a variety of equipment delivered to the
Debtors.

Furthermore, Tekelec asserted claims in the Debtors' Chapter 11
cases exceeding $14,000,000 for shipped goods, extended warranty
claims, backlog claims, and other account receivables related to
the Agreements. While the Debtors dispute these claims, the
Debtors have not yet objected to them.

Due to changes in market conditions and their downsizing of
operations, the Debtors no longer require all the hardware and
software that they have committed to purchase under the
Agreements. Nevertheless, the Debtors require certain of the
agreements for the ongoing operation of their Network. Absent a
settlement, the Debtors believe that they may be required to pay
significant cure costs in connection with the assumption of the
agreements.

Following extensive arm's-length negotiations, the Debtors and
Tekelec entered into a settlement agreement that resolves the
parties' disputes under the Agreements. The salient terms of the
Settlement Agreement are:

(A) Return of Equipment

The Debtors will take all actions reasonably required to
effectuate title transfer of the equipment that was delivered to
them pursuant to the Commitment Letter to Tekelec free and clear
of liens, claims and encumbrances. In the event of default by the
Debtors, the Settlement Agreement provides that Tekelec will have
a single Allowed Administrative Expense Claim against the Debtors
pursuant to Section 503 of the Bankruptcy Code, not to exceed the
value of any equipment they fail to return. The parties agree
that the aggregate value of all equipment is $5,460,000;

(B) Allowed General Unsecured Claim

Tekelec will have an allowed general unsecured claim in the
Debtors' Chapter 11 cases aggregating to $8,058,000;

(C) Release by the Parties

Without further delay, the Debtors and Tekelec fully and finally
release, acquit and forever discharge each other, from any and
all Claims, demands, obligations, actions, causes of action,
rights or damages under any legal theory, including under
contract, tort, or otherwise, which they now have, may claim to
have or ever had, whether known or unknown in connection with the
Agreements, other than Claims arising under any warranties
contained in the Agreements or applicable law, provided, however,
that the releases do not affect obligations expressly preserved
by or contained in the Settlement Agreement;

(D) Collection of VAT Refund

If Tekelec receives a VAT bad debt relief refund, the Debtors
agree not to object to or contest this VAT refund. The Debtors
also agree that any bad debt relief notices required to be sent
by Tekelec to the Debtors pursuant to the VAT regulations will
not be deemed a violation of the automatic stay pursuant to
Section 362 of the Bankruptcy Code. The Debtors, however, will
not be responsible to Tekelec for the payment of the VAT refund.
Without further delay, Tekelec will escrow an amount equal to
GBP61,722, representing 20% of the expected VAT refund. If the
Debtors are required to pay the VAT Refund to the appropriate
authorities in the United Kingdom, the Debtors will be entitled
to receive 20% of any amounts that they are required to pay, plus
interest, from the Escrowed Funds;

(E) Assumption of the World Master Agreement and Maintenance
Agreements

The Debtors will assume the World Master Agreement and the
Maintenance Agreements. Upon assumption, there is no cure
required in connection with or arising from the assumption of the
World Master Agreement and Maintenance Agreements pursuant to
Section 365 of the Bankruptcy Code; and

(F) Rejection of European Supplement Agreement No. 1 and the
Commitment Letter

The Debtors will reject the European Supplement Agreement No. 1
and the Commitment Letter.

By this motion, the Debtors ask the Court to approve their
Settlement Agreement with Tekelec.

Mr. Basta contends that the Settlement Agreement is fair and
equitable and falls well within the range of reasonableness. The
Settlement Agreement resolves over $14,000,000 in claims against
the Debtors, without the need for protracted litigation, at a
fraction of that amount. In addition, under the Settlement
Agreement, the Debtors will assume only those agreements that are
necessary to the continuing operations of the Network, without
the incurrence of any cure costs. Moreover, under the Settlement
Agreement, Tekelec and the Debtors agree to release all claims
against each other for actions occurring before the date of the
Settlement Agreement. This release dispels the threat of
potential litigation and allows the parties to resume a normal
business relationship.

Furthermore, Mr. Basta points out that under the Settlement
Agreement, the Debtors will recover from Tekelec 20% of any VAT
liability, which may exceed $104,810 and which may be owed by the
Debtors to authorities in the United Kingdom for failure to pay
for hardware and software purchased by the Debtors pursuant to
European Supplement Agreement No. 1. Tekelec asserts that because
of the Debtors' non-payment, it may be entitled to a VAT bad debt
relief refund in an amount equal to GBP308,610, which amount the
United Kingdom HM Customs and Excise authorities may seek to
recover from the Debtors. Pursuant to the Settlement Agreement,
if the Debtors are required to pay any VAT liability, Tekelec
will reimburse the Debtors from a segregated escrow account
established by Tekelec under the terms of the Settlement
Agreement, for 20% of any amounts paid by the Debtors. (Global
Crossing Bankruptcy News, Issue No. 53; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


GLOBAL CROSSING: Seeks Court Approval on Qwest Settlement
---------------------------------------------------------
The Global Crossing Debtors are party to a number of agreements
with Qwest Transoceanic Inc., Qwest Communications Corporation,
and certain Qwest affiliates. Following lengthy negotiations, the
Debtors and Qwest have agreed to restructure their various
contractual relationships by amending and assuming one of the
Agreements, abandoning certain assets to QTI pursuant to Section
554 of the Bankruptcy Code, and terminating the other Agreements.
To facilitate the restructuring of their relationships, the
Debtors and Qwest entered into a settlement agreement.

During the period between March, 2001 and June, 2001, the Debtors
and Qwest entered into a number of agreements wherein the Debtors
purchased from QTI an indefeasible right of use in certain
telecommunications fibers and related assets. Pursuant to the
European Agreements, QTI is obligated to provide the Debtors with
telecommunications capacity, dark fiber, and certain specified
telecommunications ducts, all located in Europe. The aggregate
purchase price of European Assets pursuant to the European
Agreements is $110,000,000. The Debtors paid the European Asset
Purchase Price in full upon execution of the European Agreements.
The Debtors entered into the European Agreements to integrate the
European Assets into their Network and therefore expanding the
Network throughout Europe. On September 30, 2001, the Debtors and
QTI entered into a number of agreements wherein the Debtors
agreed to sell telecommunications capacity to QTI in the South
American portion of the Debtors' Network. The aggregate purchase
price under the SAC Agreements is $78,000,000. QTI paid the SAC
Purchase Price in full upon execution of the SAC Agreements.

The Debtors and QCC are party to a certain agreement dated as of
June 27, 2001. Pursuant to the Atlantic Agreement, QCC purchased
from the Debtors an IRU in certain telecommunications fibers on
the Debtors' Network between London and New York for $8,000,000,
which was paid in full by QTI upon execution of the Atlantic
Agreement. The Atlantic Agreement provides the Debtors with
$320,000 revenue per year.

Pursuant to the European Agreements, QTI agreed to deliver the
European Assets to the Debtors for integration into the Debtors'
Network. QTI purchased the Assets from KPN Qwest, which, at that
time, was an affiliate of QTI.

During the period of time following the execution of the European
Agreements, the Debtors made numerous attempts to obtain all
technical and logistical information from KPNQ necessary to
integrate the European Assets into the Network. KPNQ, however,
did not respond to the requests and the Debtors were unable to
access the European Assets. In May, 2002, KPNQ filed for
bankruptcy protection in the Netherlands. Following the KPNQ
Bankruptcy, the Debtors informed QTI that it was in default under
the European Agreements and that they intended to exercise their
legal remedies. The Debtors and QTI subsequently entered into
negotiations in an attempt to resolve the Debtors' claim against
QTI. QTI denies any liability to the Debtors.

Following extensive arm's-length negotiations, the Debtors and
Qwest agreed and the Court approved that:

(a) The European Assets will be deemed abandoned to QTI pursuant
to Section 554 of the Bankruptcy Code. Each of the European
Agreements is terminated as of December 11, 2003. All rights and
obligations of the Parties pursuant to the European Agreements
will terminate and cease to be of any effect;

(b) As of December 11, 2003, the SAC Assets purchased by QTI will
be deemed returned to the Debtors. Each of the SAC Agreements is
terminated. All rights and obligations of the Parties pursuant to
the SAC Agreements will terminate and cease to be of any effect;

(c) A portion of the Atlantic Agreement is modified so that the
Annual Maintenance Costs payable by Qwest to GC Bandwidth under
the Atlantic Agreement will be reduced to $240,000 per annum. The
Atlantic Agreement is otherwise affirmed in all respects by the
Parties and remains fully enforceable and deemed assumed by the
Debtors as of December 9, 2003;

(d) The Qwest Entities and the Debtors agree to waive any amounts
due, and withdraw any default notices or payment requests
previously issued with respect to the Agreements;

(e) On December 11, 2003, the Debtors and QCC will enter into a
new lease for 1 STM-1 between Buenos Aires, Argentina and Miami,
Florida, which will be for a term ending March 31, 2005; and

(f) The Debtors and Qwest agree to fully and finally release the
other from any and all Claims relating to or arising out of the
Agreements.

The Debtors assert that the Settlement Agreement is fair and
equitable and falls well within the range of reasonableness as it
enables the parties to avoid the costs of litigation relating to
QTI's breach of the European Agreements. Given the nature of the
European Assets, litigation of the factual issues relating to the
European Assets could be lengthy and expensive. These
undertakings would continue to be a drain on the Debtors'
monetary resources.

In addition, notwithstanding the veracity of their claim against
QTI, the Debtors believe they would face a number of risks in
commencing litigation against QTI. Given the complex factual
issues, the Debtors determined that the outcome of any litigation
regarding the European Assets is far from clear. Furthermore,
integration of the European Assets into the Network would require
significant capital expenditures and the incurrence of ongoing
maintenance costs. Also, due to their Chapter 11 cases, the
profound and unforeseen changes in the telecommunications
marketplace since the purchase of the European Assets and, as a
result of these two developments, the Debtors' adoption of a
revised business plan, the Debtors no longer have a need for the
European Assets.

By entering into the Settlement Agreement the Debtors will
relinquish ownership of the European Assets but will retain
ownership of the SAC Assets, which are already integrated into
the Network. Although the original contract price of the SAC
Assets is less than the contract price of the European Assets,
the prices were calculated at a time when the telecommunications
industry was experiencing unprecedented growth and neither the
SAC Assets nor the European Assets are currently valued at their
contract price. The Settlement Agreement also provides for the
assumption of the Atlantic Agreement, which provides the Debtors
with ongoing income for maintenance. (Global Crossing Bankruptcy
News, Issue No. 53; Bankruptcy Creditors' Service, Inc., 215/945-
7000)



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

MRS LOGISTICA: To Increase Capital Expenditures This Year
---------------------------------------------------------
Brazilian rail concessionaire MRS Logistica will increase its
investments this year to almost BRL180 million (US$62.7 million),
Gazeta Mercantil quoted MRS president Julio Fontana Neto as
saying. Business News Americas recalls that the Company had
originally planned to invest only up to BRL150 million, but,
"with the possible growth of Brazil's economy, we have to expand
our fleet," said Mr. Neto. "We are in a study phase, but what is
certain is the purchase of 200 rail cars and rehabilitating
another 800, as well as [the purchase of] 18 engines," he added.

MRS moved 86Mt in 2003, up 15.8% from the previous year.
According to Gazeta Mercantil, MRS expects to increase cargo
movement by 10% this year, and that it has already purchased 12
engines from General Electric that should arrive this quarter.

MRS, which operates the 1,700km southeast network known as Malha
Sudeste through the states of Minas Gerais, Rio de Janeiro and
Sao Paulo, is controlled by steel firm CSN (32.2%), iron ore
miner MBR (32.7%), Ferteco (10.4%), Usiminas (10.2%), Gerdau
(1.25%) and minority shareholders (13.3%).


PARMALAT BRAZIL: Regulators Lodge Own Fraud Investigation
---------------------------------------------------------
Brazilian regulation authorities are starting to investigate
Parmalat's presumed fraud, while local milk producers have asked
the government to put pressure on the local unit of the Italian
dairy company so that it pays them on time. That Parmalat's
collapse raises such concerns in South America's biggest economy
comes as no surprise. Brazil was, in the late seventies, the
first step in Parmalat's overseas expansion and one of its main
markets outside Europe.

Parmalat started to acquire assets in Brazil in 1989 and has
taken over more than 20 companies over the next 10 years.  By the
end of the nineties, Parmalat was a leading company in Brazil,
which is the fifth milk producer in the world.  

Nevertheless, the expansion hid some issues of the Brazilian
operations, which according to a former executive of the firm,
contributed to the fraud.

Parmalat's former Chief Financial Officer Fausto Tonna told
Italian prosecutors that the supposed fraud committed during a
decade was partly due to a need to cover the losses of Parmalat's
subsidiaries, especially in Latin America, according to sources
close to the Company. Mr. Tonna and other seven Parmalat
executives have been arrested for a presumed fraud of around EUR7
billion.  

Meanwhile, Parmalat's new management is holding meetings in Milan
with the leaders of its main international units. Brazil's
executives were expected to meet CEO Enrico Bondi on Wednesday 7
and inform him of the situation of the Company in the country,
which according to sources close to Parmalat Brazil would be
difficult.

The exact extent of Parmalat's weaknesses in Latin America
remains unknown. However, investigators suspect that a great part
of Parmalat's EUR8.9 billion bank and bond debt could have been
allocated to aid the weakened Latin American branches.

In Brazil, Parmalat took control of 10% of the pasteurized milk
market, 25% of the long-life milk market and 40% of the long-life
carton cream market, according to its 2002 financial statement.

But the Company admitted there have been some turbulences,
especially during the devaluation of the real in 1999 and the
devaluation of the Argentine peso in 2002. The Brazilian unit
posted a US$28-million loss in the first three quarters of 2003.  

Brazilian authorities are currently examining Parmalat's local
operations. Ricardo Gontijo, spokesman for the regulation bureau,
said, there hasn't been a specific request from European
investigators, but local regulators are examining balance sheets
and financial papers that might reveal some of Parmalat's issues.


TCP: Extends Conversion Period to Preferred Shareholders
--------------------------------------------------------
Telesp Celular Participacoes S.A. - "TCP" (NYSE:TCP) (BOVESPA:
TSPP3 (Common)), (BOVESPA: TSPP4 (Preferred)), which operates
under the brand VIVO, announced on Jan. 7, 2004, that the
previously announced offer to convert preferred shares, no par
value, into common shares, no par value, of TCP at a ratio of one
to one, up to a limit of 78,752,717,772 in the aggregate for all
shareholders, is extended until 2:00 p.m., New York City time, on
Feb. 2, 2004, subject to further extension. This extension is
required in light of the statement by the Comissao de Valores
Mobiliarios (the Brazilian Securities Commission, or "CVM") on
Dec. 26, 2003, that the proposed merger of shares of TCP and Tele
Centro Oeste Celular Participacoes S.A. ("TCO"), in the CVM's
opinion, "violates applicable laws" and the consequent suspension
by TCP and TCO of the shareholders' meetings previously scheduled
for Jan. 7, 2004, pending further analysis by the companies of
the CVM's statements.

If management of TCP and TCO have not decided by Feb. 2, 2004,
whether to implement the merger of shares, TCP expects that it
will further extend the offer to convert to a later date or will
withdraw the offer. As of Jan. 5, 2004, TCP had received requests
for conversion with respect to approximately 241,000,000
preferred shares.

Questions about the offer may be directed to:

    Fernando Abella Garcia
    Telesp Celular Participacoes S.A.
    Av. Roque Petroni Jr., 1464, 6th andar, Sao Paulo, SP,
     Brazil 04707-000
    Telephone: (55) 11 5105-1207

Holders of American Depositary Shares ("ADSs") of TCP may
participate in the offer to convert if they first withdraw the
preferred shares underlying those ADSs from TCP's ADS program and
pay the applicable fees of the depositary and any taxes and
governmental charges. Questions about withdrawing preferred
shares underlying ADSs in order to participate in the offer may
be directed to:

    The Bank of New York
    101 Barclay Street
    New York, NY 10286
    Telephone: 1-888-BNY-ADRS



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

BANCO SANTANDER COLOMBIA: Fitch Withdraws Ratings
-------------------------------------------------
Fitch Ratings affirms the long and short-term foreign currency
debt ratings of 'BB-' and 'B', respectively, the individual
rating of 'D/E' and the support rating of 3 assigned to
Colombia's Banco Santander Colombia and simultaneously withdraws
the ratings. Fitch will no longer provide analytical services or
coverage of this issuer.

CONTACT:  Ricardo Chaves +1-212-908-0606, New York
          Peter Shaw +1-212-908-0553, New York

MEDIA RELATIONS: Matt Burkhard +1-212-908-0540, New York



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

PETROECUADOR: Extends Concession Bidding Deadline
-------------------------------------------------
Investors interested to bid for oil areas the government of
Ecuador is auctioning were given more time to adequately prepare
their offers before submitting it. According to Dow Jones
Newswires, state-run oil company Petroecuador has extended by 60
days the deadline for the submission of proposals. The deadline
is now set for March 23, Petroecuador president Pedro Espin told
Dow Jones Newswires, adding that the government is also hoping to
attract more participants.

So far, nine companies have signed up to participate in the
auction process, which the government launched in November. These
companies include Brazil's Petroleo Brasileiro SA (PBR), Spanish-
Argentine energy group Repsol-YPF SA (REP) and Chile's Empresa
Nacional de Petroelos, known as ENAP.

The government is hoping to grant concessions for four areas that
have combined recoverable reserves estimated at about 904 million
barrels of oil. It expects to attract some US$2 billion in
investment as a result of the concessions.

The government plans to sign so-called contracts of association,
valid for 20 years, with the winning bidders. Under the
contracts, the government will have a 30% stake in new production
at the fields, plus royalties that can range between 12.5% and
18.5%.



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

C&WJ: Receives $92M Worth of Loans From Ex-Im Bank, EDC
-------------------------------------------------------
Cable & Wireless Jamaica (C&WJ), the country's dominant telecoms
operator, obtained total loans of US$92 million from the Export-
Import Bank of the United States (US Ex-Im Bank) and Export
Development Canada (EDC), reports Business News Americas. The
Company will use these loans to finance investments in its fixed
line and mobile networks.

The loans, US$72 million from the Export-Import Bank and US$20
million from Export Development Canada (EDC), were arranged
through the London, New York and Jamaican branches of Citigroup.
C&WJ was advised on the transaction by PricewaterhouseCoopers.

The US Ex-Im Bank afforded CWJ a zero credit rating, meaning that
the Company is able to borrow on the same terms as the government
of Jamaica. The loans are repayable over seven years in 14
approximately equal semi-annual installments.

CWJ is finalizing further financing and the loans from Ex-Im Bank
and EDC represent around three-quarters of the total sought. The
company expects the remaining financing to be agreed before its
fiscal year closes on March 31, says Business News Americas.



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

UNEFON: TV Azteca Hires Law Firm for Debt Restructuring Advice
--------------------------------------------------------------
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 Wednesday that the entirety of its
independent board members has formed a special committee to
review and make recommendations regarding differences in opinion
concerning disclosures related to Unefon, in compliance with the
Sarbanes-Oxley Act.

The committee will act in total independence from TV Azteca's
management, and will be chaired by James Jones, a distinguished
independent board member of TV Azteca since 2000.

Following several meetings during the last two weeks to select
counsel, the committee has informed the rest of the board and
management that they have unanimously agreed to retain the Los
Angeles firm of Munger, Tolles and Olson as the independent legal
counsel to this committee. Munger, Tolles and Olson is a highly
regarded corporate law firm with special experience in corporate
investigations and US securities law matters. The committee has
also informed that the engaged firm will initiate its review
immediately.

Company Profile

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 US Hispanic
market, and Todito.com, an Internet portal for North American
Spanish speakers.



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

GALICIA URUGUAY: Extends Survey to Cayman Branch's Clients
----------------------------------------------------------
The Cayman Islands branch of Banco Galicia Uruguay SA, the
Uruguayan unit of Argentine financial holding company Grupo
Financiero Galicia, is included in Banco Galicia Uruguay's
current survey of clients to gauge interest in a deposit swap
survey, the bank's Argentine sister unit said Tuesday.

The Argentine bank, Banco de Galicia y Buenos Aires SA, clarified
the inclusion of the Cayman subsidiary, Banco de Galicia (Cayman)
Ltd., in a filing to the Buenos Aires stock exchange.

The survey, which started December 9 and ends February 13, asks
Banco Galicia Uruguay and Banco de Galicia (Cayman) Ltd. clients
if they are willing to swap the banks' bonds or time deposit
certificates for cash and Argentine bonds. The proposal offers
US$17.50 in cash and US$82.50 in Argentina's BODEN 2012 dollar-
denominated bonds for every US$100 in the banks bonds or
certificates of deposit. Banco Galicia Uruguay said it would
exchange up to US$300 million in bonds and certificates. The bank
reiterated in its Tuesday statement that the survey of depositors
does not constitute a formal offer.

Uruguay's central bank closed Banco Galicia Uruguay in February
2002 as Argentina's financial crisis spilled over into the
neighboring country. At that time, about US$ 1.2 billion in
deposits were frozen. Banco Galicia Uruguay has extended other
deposit-return options to its clients and some deposits are
already being given back under a nine-year plan launched in late
2002. The bank's suspension is supposed to end on March 31.


PARMALAT URUGUAY: Local Brass To Meet With Parent Co. Executives
----------------------------------------------------------------
A group of executives of Parmalat's Uruguay unit are traveling to
Italy, where they will meet Parmalat Chairman and Chief Executive
Enrico Bondi. Parmalat Uruguay's CEO, Jorge Gutman, said the idea
of the meeting is to exchange information about the situation of
multinational company, which has been involved in a financial
scandal.

He highlighted he is optimistic about the future of the Company
after the intervention of the Italian government. Nevertheless,
Mr. Gutman admitted international banks are nervous about the
situation.

Mr. Gutman informed that 100% of Parmalat Uruguay's shares belong
to its parent company. In addition, the executive does not
believe Parmalat's crisis has started to show in South America.

Mr. Gutman said the Uruguayan unit has debts to some local banks
that are the result of an important restructuring carried out
long time ago, though he wouldn't reveal figures or say whether
the Company had difficulties in meeting its financial
commitments.



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

PARMALAT VENEZUELA: Government Eager To Assist Company
------------------------------------------------------
Venezuela's government is considering helping Parmalat's local
unit in case the Company has to face financial difficulties as a
result of the scandal caused by the bankruptcy of its parent
company in Italy, said the local Production and Trade Minister,
Wilmar Castro.

Parmalat de Venezuela has repeatedly said its finances have not
been affected by the scandal, even though an arrest order against
the CEO of the Venezuelan unit, Giovanni Bonici, has been
issued.

Parmalat de Venezuela said Mr. Bonici is being pursued in Italy
in relation with his performance as CEO at Parmalat's Cayman
Islands subsidiary, Bonlat. Mr. Bonici is still in Venezuela but
his lawyer said he plans to return to Italy soon.

According to Mr. Castro, Parmalat de Venezuela is operating at
almost 100% of its capacity but is on the alert, faced with a
current lack of external financing.  

If the situation worsened, Mr. Castro added, the Venezuelan
government might purchase Parmalat de Venezuela's shares so as to
aid the Company.

A collapse at such an important company would undoubtedly lead to
important consequences in the economy, local daily El Nacional
reported Minister Castro saying.

Parmalat de Venezuela employs 2,500 people and provides 40% of
Venezuela's milk powder and 15% of its pasteurized milk, Mr.
Castro added.  



               ***********


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
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Copyright 2004.  All rights reserved.  ISSN 1529-2746.

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