TCRLA_Public/040112.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, January 12, 2004, Vol. 5, Issue 7

                          Headlines


A R G E N T I N A

ACCIONAMIENTES AVELLANEDA: Court Declares Company Bankrupt
ADMINISTRACION LA BUENA VISTA: Receiver Verifies Creditor Claims
AMERICA REMOLQUES: Claims Filing Period Ends March 15
ATAUTA: Court Assigns Receiver to Oversee Bankruptcy
CARDIOVAS: Court Sets Deadlines for Receiver's Reports

CLINICA ALVEAR: Court Declares Company Bankrupt
COLEGIO DON TORCUATO: Court Approves Reorganization Petition
COMPANIA MEGA: Fitch Affirms Senior Secured Notes Rating
CONVERTER: Court Declares Company Bankrupt
CORMAT ARGENTINA: Informational Meeing Set for March 18

CRESUD: Announces Execution of Warrants, Raises $6.4M
DIRECTV LA: Seeks To Settle Infront Rejection Claim
FINCA DEL PARANA: Enters Bankruptcy
GASODUCTO GASANDES: Restructures $168M With Multiple Banks
IRSA: Convertibles, Warrants Issue Raises $5.6 Million

JUGUETERIA ATLANTIDA: Slips from Reorganization to Bankruptcy
NICOLOSI: Reorganization Starts with Court Approval
TELECOM ARGENTINA: Amends Debt Restructuring Offer Terms
TREPAT AUTOMOTORES: Initiates Bankruptcy on Court Orders


B R A Z I L

AMAZONIA CELULAR/TELEMIG CELULAR: Moody's Assigns `B2' To Notes
EMBRATEL: Fittel Initiates Legal Action to Block Sale
SABESP: Details Terms Dividend Payment Terms


C O L O M B I A

MILLICOM INTERNATIONAL: Updates Subscribership Growth Trends


J A M A I C A

AIR JAMAICA: To Start Servicing Suspended Flights by Month's End


M E X I C O

TV AZTECA: Brokerage Cut Stock Outlook Over Debt Concerns


V E N E Z U E L A

PARMALAT DE VENEZUELA: Still Meeting Obligations To Suppliers


     - - - - - - - - - -

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A R G E N T I N A
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ACCIONAMIENTES AVELLANEDA: Court Declares Company Bankrupt
----------------------------------------------------------
The Civil and Commercial Tribunal of Lomas de Zamora ruled that  
local company Accionemientos Avellaneda S.H. is officially
bankrupt. According to Argentine news source Infobae, the court
issued an ordered declaring the Company is "Quiebra Descretada".

Mr. Carlos Debernardi, a local accountant, was assigned as the
Company's receiver. He will verify creditors' claims and prepare
the individual and general reports on the case. The report,
however, did not mention whether the court has set the filing
deadlines for the receiver's reports.

CONTACT:  Accionamientos Avellaneda S.H.
          Bulnes 6101
          Wilde

          Carlos Debernardi
          Pasaje las Delicias 1181
          Adrogue


ADMINISTRACION LA BUENA VISTA: Receiver Verifies Creditor Claims
----------------------------------------------------------------
Buenos Aires accountant Daniel Ernesto Altman takes charge as
receiver for the bankruptcy of local company Administracion la
Buena Vista S.A.. Creditors must present their claims to the
receiver for verification before March 19.

The results of the verification process will be forwarded to the
court through the individual reports, which are due on May 5 this
year. The general report, which is prepared after the individual
reports are processed at court, is due for filing on June 21.

The city's Court No. 2 handles the Company's case, local news
source Infobae relates. Clerk No. 3 assists the court on the
case.

CONTACT:  Administracion la Buena Vista S.A.
          Ave Callao 1515
          Buenos Aires

          Daniel Ernesto Altman
          Parana 774
          Buenos Aires


AMERICA REMOLQUES: Claims Filing Period Ends March 15
-----------------------------------------------------
Creditors of Argentine company America Remolques S.R.L. must have
their claims authenticated before March 15 this year. The
Company's receiver, Ms. Norma Zulema Vivares examines and
verifies claims to determine the nature and amount of the
Company's debts.

A report by local news portal Infobae indicates that the Company
entered bankruptcy on orders from Buenos Aires Court No. 1. Clerk
No. 1 works with the court on the case, which will close with the
liquidation of the Company's assets to repay creditors.

CONTACT:  Noemi Zulema Vivares
          Ave Cordoba 2626
          Buenos Aires


ATAUTA: Court Assigns Receiver to Oversee Bankruptcy
----------------------------------------------------
Buenos Aires Court No. 14 assigned Argentine accountant Ester
Alicia Ferraro as receiver for the bankruptcy local company
Atauta S.R.L., reports local news source Infobae. Clerk No. 28
works with the court on the case, which will close with the
liquidation of the Company's assets to repay creditors.

The credit verification process ends on April 7 this year. The
Company's receiver, who verifies the claims, will prepare the
individual reports, which are due at the court on May 24, after
verifications are closed. The general report must be submitted to
the court on June 23.

CONTACT:  Ester Alicia Ferraro
          Esmeralda 960
          Buenos Aires


CARDIOVAS: Court Sets Deadlines for Receiver's Reports
------------------------------------------------------
Buenos Aires Court No. 23, which holds jurisdiction over the
bankruptcy of local company Cardiovas S.A., has set the deadlines
for the filing of the receiver's reports. Local news portal
Infobae indicates that the individual reports, which are prepared
after the verification process is completed, are due on April 15,
while the general report is due at the court on May 28.

The Company's creditors are required to file their claims before
March 1 this year. The receiver, Ms. Mirta Calfun Bendersky, will
examine and authenticate creditors' claims in order to determine
the nature and amount of the Company's debts. The results of the
verification process will also be used as a standard for payments
to be made after the Company's assets are liquidated.

CONTACT:  Mirta Calfun Bendersky
          Humahuaca 4165
          Buenos Aires


CLINICA ALVEAR: Court Declares Company Bankrupt
-----------------------------------------------
Court No. 57 of the Civil and Commercial Tribunal of San Nicolas
in Argentina orders the bankruptcy process to begin for local
company Clinica Alvear S.A., according to Argentine news portal
Infobae. The Company's assets will likely be liquidated at the
end of the process to reimburse its creditors.

The Company's receiver, Ms. Adriana Guildobaldi, will examine and
authenticate creditors' claims until March 4. This is done to
determine the nature and amount of the Company's debts. The
receiver will also prepare the individual and general reports,
whose deadlines were not indicated in the Infobae report.

CONTACT:  Clinica Alvear S.A.
          Alvear 57
          San Nicolas

          Adriana Guidobaldi
          Alberdi 742
          San Nicolas


COLEGIO DON TORCUATO: Court Approves Reorganization Petition
------------------------------------------------------------
Court No. 6 of San Isidro in Argentina approved a motion for
"Concurso Preventivo" filed by local company Colegio Don Torcuato
S.H., reports Argentine news portal Infobae. The Company will
undergo reorganization with Mr. Armando Albano as receiver.

Creditors are required to file their individual reports before
March 2 this year. This is done to determine the nature and
amount of the Company's debts. The receiver, who verifies the
reports, will prepare the individual reports after the
verification process is completed. These reports must be
submitted to the court on April 27. After the individual reports
are processed at court, the receiver will prepare the general
report, which must be submitted on June 10.

CONTACT:  Armando Albano
          Ave Centenario 725
          San Isidro


COMPANIA MEGA: Fitch Affirms Senior Secured Notes Rating
--------------------------------------------------------
Fitch Ratings has affirmed Compania Mega S.A. (Mega) senior
secured international debt rating at 'B+' and removed the Rating
Watch Negative. The rating applies to an aggregate of
approximately US$392.7 million of outstanding debt, consisting of
approximately US$121 million of Class D floating-rate notes due
2009, US$102 million of Class E floating-rate notes due 2012, and
US$170 million of 10.77% of Class G notes due 2014. Fitch has
also affirmed the national scale rating of 'A' (arg) and assigns
a Stable Outlook to Mega.

The rating action reflects the recently renewed sponsors'
guarantees, which ensure unconditional repayment of any
outstanding debt through December 2005. Mega is owned by
subsidiaries of 38% Repsol YPF S.A., 34% Petroleo Brasileiro S.A.
(Petrobras), and 28% The Dow Chemical Company (Dow). Fitch's
current senior unsecured debt ratings of the sponsors are as
follows: Dow 'A-', Petrobras 'B+', YPF 'BB' and Repsol YPF 'BBB+'
(YPF's guarantee is supported by a guarantee from its parent
Repsol YPF). The sponsors' willingness to renew their respective
guarantees validates the strategic importance of Mega to each
sponsor, which are also the long-term contractual offtakers of
Mega's production output.

While debt holders will still rely on Mega's cash flow generation
capacity from the sale of the project's production output, any
debt service shortfall through 2005 will be supplemented by the
financial support from the sponsors. In addition, the sponsors'
guarantees incorporate the contractual obligation of the sponsors
to repay any outstanding debt held by a noteholder upon that
noteholder's exercise of its right to put its debt holding on
either of the two specified dates of Jan. 15, 2004 and Dec. 1,
2005 prior to the expiration of the guarantees.

In spite of a challenging economic environment in Argentina that
followed the economic distress in December 2001, Mega has
maintained satisfactory operations and financial performance over
the past 24 months. For the first nine months of 2003, Mega
generated over US$268 million of sale revenues with production
output that averaged 1,016,000 metric tonnes (mt) and realized
prices that averaged approximately US$296 per mt for ethane,
US$292 per mt for LPG, and US$261 per mt for natural gasoline.
Average production output was up approximately 15% and average
realized prices for Mega's three products improved by greater
than 45% compared to the prior year. As a result of the higher
output and stronger commodity prices, Mega maintains a strong
liquidity position with approximately US$146 million of excess
cash held offshore at the end of November 2003. Pursuant to the
note indenture, these funds could be used for debt prepayment.

Mega is a US$715 million natural gas separation and fractionation
facility with an annual capacity to produce 369,000 mt of
propane, 242,000 mt of butane (collectively the LPG mix); 562,000
metric tons of ethane, and 223,000 mt of natural gasoline.
Project revenues consist largely of export sales of LPG and
natural gasoline to Petrobras and local ethane sales to PBB
Polisur (an ethylene producer owned by Dow and YPF).
  
CONTACT:  Fitch Ratings
          Caren Y. Chang
          Phone: 312-368-3151

          Cecilia Minguillon
          Phone: +5411-4327-2444

          Gersan Zurita
          Phone: 212-908-0318

          Matt Burkhard, Media Relations
          Phone: 212-908-0540
  
  
CONVERTER: Court Declares Company Bankrupt
------------------------------------------
Buenos Aires Court No. 8 makes official the bankruptcy process
for local company Converter S.A. "Quiebra", placing the Company
under bankruptcy protection. The Company is placed in the hands
of its receiver, Mr. Jorge Luis Blazquez.

Creditors are required to file their claims before March 23 this
year. After verifying claims, the receiver will prepare the
individual reports, which are to be submitted to the court on May
7. He will also prepare a general report, which is due for filing
on June 22, after the individual reports are processed at the
court.

CONTACT:  Converter S.A.
          Cordoba 456
          Buenos Aires  

          Jorge Luis Blazquez
          Oro 2381
          Buenos Aires


CORMAT ARGENTINA: Informational Meeing Set for March 18
-------------------------------------------------------
The required creditor assembly for the reorganization of
Argentine company Cormat Argentina S.A. will be held on March 18
this year, says Infobae. This meeting is one of the final steps
in a reorganization process.

The meeting comes after the Company's receiver has filed at the
court the general report, which is a consolidation of the
individual reports that contain the results of the credit
verification process. Court No. 1 of Salta's South District Civil
and Commercial Tribunal.


CRESUD: Announces Execution of Warrants, Raises $6.4M
-----------------------------------------------------
Cresud S.A.C.I.F. y A. (Nasdaq: CRESY) (BCBA: CRES) (the Company)
announces the execution of warrants attached to its Convertible
Notes for a total 5,334,919 units, consequently raising US$ 6.4
million.

On December 31, 2003, the holders of the Company's Convertible
Notes executed their warrants for a total 5,334,919 units. As a
result, 10,505,936 shares of $1 nominal value each were issued
(1,050,594 ADRs).

As of today, outstanding shares total 146,374,345 (14,637,435
ADRs), while outstanding Convertible Notes and warrants amount to
44,267,630 and 44,515,078 face value, respectively.

Executing the warrants allowed the Company to raise funds
totaling US$ 6.4 million.


DIRECTV LA: Seeks To Settle Infront Rejection Claim
---------------------------------------------------
DirecTV Latin America's explains its principal goal in the
Chapter 11 case was to use the means provided under the
Bankruptcy Code to effectively address the increasing problems
caused by its uneconomic programming agreements.  As an initial
step in that effort, DirecTV Latin America sought to reject
certain uneconomic agreements, including the agreement it has
with Infront WM GmbH, formerly known as Kirsch Media WM GmbH.  
Pursuant to the Agreement, the Debtor licensed the right to
broadcast and make available to its ultimate subscribers the 2002
and 2006 FIFA World Cups, and was afforded certain sublicensing
and other rights.

M. Blake Cleary, Esq., at Young, Conway, Stargatt & Taylor, LLP,
in Wilmington, Delaware, relates that before the Petition Date,
Infront commenced litigation in Switzerland seeking damages for
alleged breaches by the Debtor under the World Cup Agreement.  
The Debtor has taken the position in the Swiss Action that the
World Cup Agreement had terminated.  The Swiss Action remains
pending but is presently stayed.

Mr. Cleary tells the Court that the Debtor rejected its remaining
obligations under the World Cup Agreement.  Based on the
rejection, Infront timely filed a proof of claim for $272,500,000
in damages allegedly resulting from the Debtor's rejection.  
Subsequently, the Office of the United States Trustee appointed
Infront to the Creditors Committee.

The Debtor has reviewed Infront's proof of claim and assessed the
extent to which, consistent with its five-year business plan, it
can broadcast the World Cup and certain other FIFA additional
events on an economic basis.  The Debtor negotiated with Infront
to settle the Infront Rejection Claim and to continue
broadcasting the World Cup Soccer.

According to Mr. Cleary, Infront and the Debtor agreed that the
Infront Rejection Claim will be allowed as a general unsecured
claim for $185,000,000.  The Agreement is conditioned, however,
on the filing and the ultimate confirmation of the Debtor's Plan,
which provides for a cash distribution to allowed general
unsecured claimholders in an amount not less than 20% of the
holder's allowed claims.  On December 11, 2003, the Debtor filed
a Plan and Disclosure Statement providing for the requisite 20%
cash distribution to general unsecured creditors.  The Debtor has
been advised that the Plan is acceptable to, and will be actively
endorsed by, the Creditors Committee.

As an integral part of the Settlement, Infront and the Debtor
have agreed on the terms of a new programming agreement pursuant
to which Infront will license to the Debtor certain non-exclusive
rights to broadcast the 2006 World Cup to its ultimate
subscribers.  The effectiveness of the New Infront Agreement
remains expressly subject to the Plan Effective Date.  As a
further integral part of the Settlement, the Debtor and Infront's
affiliate, Infront WM AG, have agreed to amend, and the Debtor
has agreed to assume, a certain Additional Events Agreement and
to pay Infront a compromised cure claim.

The New Infront Agreement incorporates substantial differences
from the terms contained in the original rejected Infront
Agreement including critical reductions in the rates to be paid
by the Debtor.  The Additional Events Agreement also contains
significant rates reduction.

Mr. Cleary explains that due to their proprietary nature, the
terms, conditions and related information set forth in the New
Infront Agreement and the Additional Events Agreement have not
been disclosed to any unrelated third party, except for the
professionals of the Creditors Committee who reviewed the
information and assured the Debtor of the Committee's support
regarding its entry into the New Infront Agreements.  Broader
disclosure would likely undermine the overall settlement between
the Debtor and Infront.  Without confidentiality, the Debtor's
efforts to confirm its Plan could be substantially impaired.

Mr. Cleary notes that as part of the Settlement, all litigation
with respect to the World Cup Agreement, including the litigation
pending in Switzerland, will be dismissed with prejudice.

Accordingly, the Debtor asks the Court to approve the settlement
of the Infront Rejection Claim. (DirecTV Latin America Bankruptcy
News, Issue No. 17; Bankruptcy Creditors' Service, Inc., 215/945-
7000)


FINCA DEL PARANA: Enters Bankruptcy
-----------------------------------
Finca del Parana S.A., which is based in Santa Fe, Argentina,
enters bankruptcy on orders from Court No. 4 of the province's
Civil and Commercial Tribunal. Infobae relates that the court
ruled that the Company is "Quiebra".

The deadline for the general report is April 30 this year. This
report is a consolidation of the individual reports, which
contain the results of the verification process. This will be
used as basis for the distribution of payments after the
Company's assets are liquidated.

CONTACT:  Finca del Parana S.A.
          Ruta Nacional 11km 481
          Recreo Sur
          Santa Fe


GASODUCTO GASANDES: Restructures $168M With Multiple Banks
----------------------------------------------------------
Gasoducto GasAndes (Argentina) SA successfully restructured
US$168 million of debt on December 2003. The debt was obtained
under a 1996 Credit Agreement with a group of banks led by Credit
Lyonnais. The restructuring process also included Gasoducto
GasAndes' shareholders, the Bank Bilbao Vizcaya Argentaria
(Spain) SA and a group of banks including Banco Societe Generale,
ANZ, Dexis, Fortis, KBC, and the Royal Bank of Scotland.

Under the terms of the agreements, the debt corresponding to
Gasoducto GasAndes has been refinanced with some conditions; the
term for the payment of Gasoducto GasAndes has been extended;
Gasoducto GasAndes constitutes guarantee over different actives
and finally Total SA, the major shareholder, has given additional
guarantees.

During the restructuring process, Gasoducto GasAndes was
represented by lawyer Ms. Magdalena Enei, while Total SA was
represented by Mr. Alain Vedier.

Sullivan & Cromwell LLP has been the assessor of Total SA and
Gasoducto GasAndes, while Milbank, Tweed, Hadley & McCloy LLP has
acted as BBVA and Societe Generale's assessor.

Ms. Cariola Diez Perez-Cotapos acted as the assessor of the group
of banks led by Societe Generale in relation to the Chilean law.


IRSA: Convertibles, Warrants Issue Raises $5.6 Million
------------------------------------------------------
IRSA Inversiones y Representaciones Sociedad Anonima (NYSE:IRS)
(BCBA: IRSA) (the Company) announced the acquisition of shares
and warrants of Banco Hipotecario S.A., as well as the execution
of warrants attached to the Company's Convertible Notes for a
total 4,628,808 units, consequently raising US$ 5.6 million.

Acquisitions of shares and warrants of Banco Hipotecario S.A.
(BCBA: BHIP). On December 30, 2003, the Company acquired from
EMOF LLC and Quantum Industrial Partners LDC, 1,975,990 shares
and 18,020 warrants of Banco Hipotecario S.A., representing the
right to purchase an additional amount of approximately 1,802,000
shares. The Company paid US$ 2.3868 per share and US$ 33.86 per
warrant, disbursing a total US$ 5.3 million.

Furthermore, Ritelco S.A., a company controlled by IRSA, acquired
from the same firms 2,140,277 shares of Banco Hipotecario S.A.
and 19,517 warrants, paying US$ 2.3868 per share and US$ 33.86
per warrant, resulting in a total payment of US$ 5.8 million.

After the above-mentioned acquisitions, IRSA's total stake in
Banco Hipotecario S.A. increased from 3.66% to 4.98%, while
Ritelco's stake grew from 3.56% to 4.99%.

The Company increased its investment in Banco Hipotecario S.A.
because of its attractive long-term prospects and considering the
mortgage lending services to be complementary to its diversified
real estate activities.

Execution of warrants attached to the Convertible Notes.

On December 31, 2003, the holders of the Company's Convertible
Notes executed their warrants for a total 4,628,808 units. As a
result, 8,493,223 shares of $1 nominal value each were issued
(849,322 ADRs).

As of today, outstanding shares total 229,289,058 (22,928,906
ADRs), while outstanding Convertible Notes and warrants amount to
95,205,870 and 95,371,192 face value, respectively.

The execution of the warrants allowed the company to raise funds
for a total US$ 5.6 million.

CONTACT:  IRSA Inversiones y Representaciones Sociedad Anonima
          Gustavo Mariani, Finance Manager
          Phone: +011-5411-4323-7513
          Email: gm@irsa.com.ar

          Home page: http://www.irsa.com


JUGUETERIA ATLANTIDA: Slips from Reorganization to Bankruptcy
-------------------------------------------------------------
Argentine company Jugueteria Atlantida S.R.L. enters bankruptcy
on orders from Court No. 2 of the Civil and Commercial Tribunal
of Rafaela in Santa Fe. Infobae reports that the Company was
undergoing reorganization. The schedule for the bankruptcy
proceedings is yet to be determined.

CONTACT:  Jugueteria Atlantida S.R.L.
          Agustin Alvarez 329
          Rafaela, Santa Fe


NICOLOSI: Reorganization Starts with Court Approval
---------------------------------------------------
Argentine company Nicolosi S.A. will undergo reorganization after
receiving court permission from the Civil and Commercial Tribunal
of Quilmes in Argentina. According to local news portal Infobae,
the province's Court No. 6 handles the case.

The court assigned Mr. Ricardo Jorge Randup as the Company's
receiver, the source adds. He will verify creditors' claims until
February 5. The individual reports, which are prepared after the
verification process is completed, must be submitted to the court
on March 15. The general report should follow on May 26.

The informative assembly will be held on August 1 this year. This
is one of the last parts of a reorganization process.

CONTACT:  Nicolosi S.A.
          Camino General Belgrano 6003
          Florencio Varela

          Ricardo Jorge Randup
          Moreno 525
          Quilmes


TELECOM ARGENTINA: Amends Debt Restructuring Offer Terms
--------------------------------------------------------
Telecom Argentina, a telecommunications firm controlled by
Telecom Italia and Grupo Werthein, amended the terms of the
second stage of its debt restructuring offer launched in April
2003. The term sheet that is circulating among some of the banks
of Telecom's creditors steering committee - composed by Citibank,
Banco Rio, Japan Bank, BBVA Frances, WestLB and BankBoston -
offers to exchange debt for a long-term bond that, unlike the
initial offer, will not have a 66% discount in face value.
Additionally, Telecom would have chosen not to offer 30% of its
capital stock to creditors, a possibility that had been announced
in April.

Telecom Argentina spokesman, Pablo Talamoni, said they don't know
yet when the definitive offer will be announced.

Telecom has to renegotiate US$2.9 billion in defaulted debt and
is believed to be launching a formal restructuring offer this
year. Its CEO, Carlos Felices, said the company will likely seek
an acuerdo preventivo extrajudicial, or APE, an out-of-court
settlement in which two-thirds approval from creditors will allow
the Company to secure legal approval for the deal.


TREPAT AUTOMOTORES: Initiates Bankruptcy on Court Orders
--------------------------------------------------------
Trepat Automotores S.A. entered bankruptcy on orders from Buenos
Aires Court No. 15. Clerk No. 29 works with the court on the
case, reports local news portal Infobae. The Company's assets
will be liquidated at the end of the process.

The Court assigned Mr. Salvador Lamarchina as the Company's
receiver. He will authenticate creditors' claims until April 7
this year. The After verifications are closed; the receiver will
prepare the individual reports, followed by the general report.
Infobae, however, did not mention whether the court has set the
deadlines for these reports.

CONTACT:  Salvador Lamarchina
          Esmeralda 647
          Buenos Aires



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B R A Z I L
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AMAZONIA CELULAR/TELEMIG CELULAR: Moody's Assigns `B2' To Notes
---------------------------------------------------------------
Moody's Investors Service assigned Thursday a B2 rating to the
notes units issuance worth US$70 million due 2009 issued by
Telemig Celular S.A. ("Telemig"). Concurrently, the ratings
agency assigned a B2 rating to the notes units issuance worth
US$30 million due 2009 issued by Amazonia Celular S.A.
("Amazonia"). The rating outlook is stable.

The rating assigned to the notes units is principally based on
the credit quality of Amazonia and is not constrained by the
convertibility risk implied by Moody's Brazil country ceiling for
foreign currency bonds and notes of B2, Moody's said.

The rating reflects the credit quality of Amazonia because 30% of
the debt service of the notes units will depend on payments from
Amazonia and are not guaranteed by Telemig, which has a stronger
credit profile, Moody's added.

Although Moody's recognizes the existence of a "keep-well"
structure allowing Telemig to make investments in Amazonia, the
assigned rating does not incorporate explicit support from
Telemig to Amazonia due to the absence of a stronger,
contractually-binding agreement that does not possess
optionality.

Finally, the rating incorporates Moody's expectation that all
outstanding financial covenant waivers and requests for amendment
will be concluded upon the issuance of the notes.

The rating is restrained by Amazonia's exposure to an intense
competitive environment composed of three larger and better
capitalized national and international operators in the company's
concession region. Competitors may benefit from more consistent
access to the capital markets and scale advantages on handset
purchases.

The rating also incorporates Moody's expectation that Amazonia's
planned network overlay will lead to negative free cash flow in
2004, possibly resulting in refinancing risk.

Finally, the rating reflects the extremely low per capita income
in Amazonia's concession area, which Moody's expects will
continue to cause below-average subscriber penetration rates and
above-average churn rates.

Telemig Celular is the leading provider of mobile communications
services in the state of Minas Gerais, Brazil, while Amazonia
Celular is the leading provider of mobile communications services
in a region covering the states of Maranhao, Para, Amazonas,
Amapa and Roraima in the northern region of Brazil.


EMBRATEL: Fittel Initiates Legal Action to Block Sale
-----------------------------------------------------
As part of an attempt to block the purchase of Brazilian telco
Embratel by a consortium of three local incumbents, telecom
workers federation Fittel will lodge a formal complain with the
antitrust authority. Business News Americas reports that Telemar,
Brasil Telecom and Telefonica announced their intention to
acquire Embratel last year, but so far, the government has made
no decision on the matter.

The law says that Embratel, as the country's incumbent long
distance operator, cannot be acquired by another incumbent or
joint venture of incumbents. However, some market analysts
believe the government is prepared to bend the law in the
Embratel case.


SABESP: Details Terms Dividend Payment Terms
--------------------------------------------
Sabesp - Cia. de Saneamento Basico do Estado de Sao Paulo
(NYSE:SBS) (Bovespa:SBSP3), the largest water and sewage utility
company in the Americas and the third-largest in the world (in
terms of number of customers), announced that in a meeting held
Thursday its Management Bodies deliberated, pursuant to section 2
of Article 30 of its Bylaws, the credit and payment of Dividends
in the form of Interest on Own Capital, referring to November and
December 2003, to the holders of shares on the base date of Jan.
19, 2004.

I - AMOUNT, DATE AND CREDIT AND PAYMENT TERMS

The Dividends as Interest on Own Capital, totaling R$
190,813,171.44 correspond to R$ 6.70 per thousand common shares
and shall be paid no later than 60 days after the 2004 Annual
Shareholders' Meeting.

II - WITHHOLDING INCOME TAX

Withholding Income Tax will be deducted from the amount of
payment of Dividends as Interest on Own Capital, pursuant to
current legislation, except for exempt shareholders who prove
this condition prior to Jan. 30, 2004, by presenting related
documents to the Company at Rua Costa Carvalho 300 - Sao Paulo -
SP, Zip Code: 05429-900, in attention to the Funding and Investor
Relations Superintendency, FI, suite 267.

III - ATTRIBUTION TO DIVIDENDS

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

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

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

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

V - RECORD DATE

The shares will start being traded ex-interest and ex-dividends
on Jan. 20, 2004.
  
CONTACT:  Sabesp
          Investor Relations:
          Helmut Bossert
          Phone: 5511 3388-8664
          Email: hbossert@sabesp.com.br

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

          Home page: www.sabesp.com.br  



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

MILLICOM INTERNATIONAL: Updates Subscribership Growth Trends
------------------------------------------------------------
- Highest ever quarterly additions in total subscribers*(i)
- 30% underlying annual growth in total subscribers*(i)
- 28% underlying annual growth in proportional subscribers*(i)

Millicom International Cellular S.A. (MIC) (Nasdaq Stock Market:
MICC), the global telecommunications investor, announced Thursday
that in the fourth quarter of 2003 its worldwide operations in
Asia, Latin America and Africa added 386,701 total net new
cellular subscribers. Total underlying subscriber additions
excluding El Salvador for the fourth quarter were the highest on
record. On a proportional basis, MIC added 218,931 subscribers,
bringing the total at December 31, 2003 to more than 4 million.

At December 31, 2003, MIC's worldwide cellular subscriber base
increased to 5,690,542 cellular subscribers from 4,002,911 as at
December 31, 2002. Particularly significant percentage increases
were recorded in Ghana, Senegal, Mauritius, Sri Lanka and
Vietnam. Both Asia and Africa recorded their best ever quarter in
terms of total subscriber growth with additions of respectively
239,390 and 129,761 subscribers. For Asia, this represented an
increase in total subscribers of 45% from December 31, 2002 and
10% from September 30, 2003 and for Africa, an increase of 63%
from December 31, 2002 and 24% from September 30, 2003.

At December 31, 2003, MIC's proportional subscriber base
increased to 4,025,577 from 2,784,187 at December 31, 2002, an
increase of 44%.

Cellular Operations including El Salvador (i)

  Proportion- Proportion- Annualized  Total   Total Annualized
        al (ii)     al (ii)    Increase   Subs    Subs   Increase
        Subs at     Subs at                 at     at     
        Dec 31,     Dec 31,               Dec 31   Dec 31
         2003        2002*                 2003    2002*

Asia     1,678,336  1,158,253  45%   2,677,149  1,841,537   45%
Latin    1,883,809  1,359,437  38%   2,351,889  1,755,124   34%
America
Africa     463,432    266,497  72%     661,504    406,250   63%
Total    4,025,577  2,784,187  44%   5,690,542  4,002,911   42%
Cellular
Ops

(i) All numbers and comparatives exclude divested operations

(ii) Proportional subscribers are calculated as the sum of MIC's
percentage ownership of subscribers in each operation.

* Excluding El Salvador, which was re-consolidated in September
2003

Within the 4,025,577 proportional cellular subscribers reported
at the end of the fourth quarter, 3,550,322 were pre-paid
customers. Excluding El Salvador, proportional pre-paid
subscribers increased by 32% from December 2002. Pre-paid
subscribers currently represent 88% of gross reported
proportional cellular subscribers.

Millicom International Cellular S.A. is a global
telecommunications investor with cellular operations in Asia,
Latin America and Africa. It currently has a total of 16 cellular
operations and licenses in 15 countries. The Group's cellular
operations have a combined population under license of
approximately 382 million people. In addition, MIC provides high-
speed wireless data services in five countries.

CONTACTS:  MILLICOM INTERNATIONAL CELLULAR S.A., Luxembourg
           Marc Beuls, President and Chief Executive Officer
           Telephone: +352 27 759 101
           
           SHARED VALUE LTD, London
           Andrew Best
           Telephone: +44 (0) 20 7321 5022



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

AIR JAMAICA: To Start Servicing Suspended Flights by Month's End
----------------------------------------------------------------
After suspending flights to Nassau and Grand Cayman beginning
2002 because of declining passenger loads, Air Jamaica will
resume flying to both destinations on January 29, reports
RadioJamaica.

Air Jamaica Express, which has been serving both destinations,
said there has been an increased demand for airlift to and from
the islands in recent months. And according to Air Jamaica's
Senior Vice President, Industry Affairs, Will Rodgers, the 37-
seat Dash 8 Aircraft operated by Air Jamaica Express is unable to
adequately service the routes.

Any Express staff dislocated by the changes will be given
preference for employment as the national airline returns to the
routes, said Air Jamaica.



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

TV AZTECA: Brokerage Cut Stock Outlook Over Debt Concerns
---------------------------------------------------------
Two brokerage firms on Thursday downgraded their recommendation
on Mexican broadcaster TV Azteca (NYSE: TZA) amid concerns about
a dispute over disclosure of debt transactions at the
broadcaster's wireless affiliate Unefon SA (NEFONA.MX).

Deutsche Ixe cut its recommendation on TV Azteca to "sell", while
Merrill Lynch cut the broadcaster to "sell" from "buy". Earlier,
J.P. Morgan cut the stock to "underweight" from "neutral."

The downgrades stem from the Company's failure to disclose last
year that TV Azteca chairman Ricardo Salinas Pliego and Unefon
chairman Moises Saba purchased US$107 million in Unefon debt from
Canadian communications equipment supplier Nortel Networks via
private equity firm Codisco Investments.

Through Codisco, Salinas Pliego and Saba then sold the debt back
to Unefon for US$325 million, profiting US$218 million.

TV Azteca's outside counsel, Akin Gump Strauss Hauer & Feld, had
quit over concerns the Company may have broken U.S. laws by not
fully disclosing material facts surrounding the debt deal.

In meetings with analysts in New York last week, TV Azteca
management acknowledged that the Company may come under
investigation by the U.S. Securities and Exchange Commission
because of the deal.

"Although we're not totally surprised to have confirmed that Mr.
Salinas and Mr. Saba were behind this transaction, we are amazed
at the amount of profit they made in the operation," wrote
analysts with DeutscheIXE.



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

PARMALAT DE VENEZUELA: Still Meeting Obligations To Suppliers
-------------------------------------------------------------
Parmalat de Venezuela continued to pay local milk suppliers
despite its Italian parent company Parmalat's financial woes, El
Universal reports, citing Jose Agustin, president of Venezuela's
Confagan cattle and agriculture group. Mr. Agustin revealed that
the local unit of Parmalat has not reduced the volume of orders
from local milk producers and that the company's production is
normal. According to him, local investors are waiting on the
sidelines to see what will happen with Parmalat's 40% stake in
the powdered milk market and 15% stake in the pasteurized milk
market.

"The conditions exist for this company to be administered by
Venezuelan producers and investors," said Mr. Agustin.

Venezuelan officials have said the state may intervene in
Parmalat's operations if the Company runs into financing and
supply problems. However, Parmalat de Venezuela has insisted that
its finances are sound despite the fraud scandal, including an
arrest warrant out for the Venezuelan subsidiary's president. The
subsidiary has said the arrest warrant for Giovanni Bonici had
nothing to do with his activities as president of Parmalat de
Venezuela.

Instead, Mr. Bonici is wanted in connection with his actions as
chairman of Bonlat, Parmalat's subsidiary in the Cayman Islands,
said a recently released statement issued by Parmalat de
Venezuela.




               ***********


S U B S C R I P T I O N   I N F O R M A T I O N

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

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