/raid1/www/Hosts/bankrupt/TCRLA_Public/040114.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

          Wednesday, January 14, 2004, Vol. 5, Issue 9

                          Headlines

A R G E N T I N A

AMERICAN RESTAURANT: Court Appoints Receiver
APSA: Argentine S&P Rates $380M of Bonds `raD'
BANCO HIPOTECARIO: No APE Approval Needed For Debt Offer
CABLEVISION: Postpones Expiry Date of Debt Offer Once Again
CARPINTERIA FERNANDEZ: Court Declares Company Bankrupt

LARREINA E HIJOS: Court Sets Date for Informative Meeting
METROGAS: $600M of Bonds Rated `D' by Moody's
SEMA DE RESPONSABILIDAD: General Report Due March 3

* Argentina to IMF: Will Pay Only 25% of Defaulted Debt


B R A Z I L

CELG: Reaches $351M Debt Accord With Eletrobras
ELETRONET: Geodex Confirms Delivery of Acquisition Proposal
EMBRATEL: Geodex Delivers Acquisition Proposal
GERDAU: Unit Opens Civil Construction Service Center In Sao Luis
GERDAU: Ensures Strategic Position in the Supply of Iron Ore

PARMALAT BRAZIL: To Return Tomato Plant To Unilever
PARMALAT BRAZIL: Creditors Study Whether To Extend More Loans
VOTORANTIM GROUP: $300M Senior Notes Rated 'B+'


C H I L E

LE MANS: SVS Orders Annuities Portfolio Liquidation
MADECO: Forecasts 10% Rise in Sales This Year


C O L O M B I A

ERAS: Executive Slams Reports Suggesting Liquidation

* IMF Completes Second Review of Colombia's Stand-By Arrangement


E C U A D O R

PETROECUADOR: Seeks Responses to Proposed Tenders


M E X I C O

GRUPO TMM: Announces Majority Support for Bond Restructure
TV AZTECA: U.S. SEC Initiates Transaction Inquiry


P E R U

MINERA VOLCAN: Acknowledges Receipt of Glencore Loan


V E N E Z U E L A

PDVSA: To Invest $5B This Year
PDVSA: Venezuelan President Confirms Sale Intent

     -  -  -  -  -  -  -  -

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

AMERICAN RESTAURANT: Court Appoints Receiver
--------------------------------------------
Buenos Aires Court No. 26, which declared American Restaurant
Argentina S.A. bankrupt, assigned Mr. Pablo Amante as receiver,
who will oversee the bankruptcy process. The court, with
assistance from Clerk No. 52, gave the receiver until April 1
this year to verify credit claims. After the verification is
completed, the receiver will then prepare the individual reports,
which are to be submitted to the court on May 17. The general
report, a consolidation of the individual reports after these are
processed at court, is to be submitted on June 30.

CONTACT:  American Restaurant Argentina S.A.
          Senillosa 543
          Buenos Aires

          Pablo Amante
          Lavalle 1537
          Buenos Aires


APSA: Argentine S&P Rates $380M of Bonds `raD'
----------------------------------------------
The Argentine arm Standard & Poor's International Ratings, Ltd.
assigned default ratings to a total of US$380 million worth of
corporate bonds issued by Autopistas del Sol S.A., according to
the country's securities regulator, the Comision Nacional de
Valores.

The rating, which is based on the Company's finances as of the
end of September last year, is assigned to financial obligations
that are currently in default. The ratings agency said that the
same rating may be issued if interest or principal payments are
not made on the due even if the applicable grace period has not
expired.

The `raD' rating applies to bonds called "Obligaciones
Negociables simples, autorizadas por AGO de fecha 16.5.97",
classified under "Simple Issue". Some US$170 million of these
will mature on August 2 this year, while the rest will come due
on August 3, 2009.


BANCO HIPOTECARIO: No APE Approval Needed For Debt Offer
-----------------------------------------------------------------
Argentina's mortgage bank Banco Hipotecario announced December 30
that it had closed the restructuring of US$1.3 billion in debt to
individual bondholders and banks. Its debt-restructuring offer
was accepted by creditors holding 95.6% of its debt.

Hipotecario's financial manager, Gabriel Saidon, said that the
acceptance reached US$913 million, or 94.2%, among bondholders,
while 100% of the bank creditors - with US$ 302.4 million -
accepted the offer.

Hipotecario offered creditors the opportunity to exchange
defaulted debt for new 10-year bonds, maintaining the original
currency and the nominal value. These bonds could be then swapped
for a guaranteed seven-year bond with a 30% nominal haircut or
cash with a 55% cut on the value of the new bond.

Among rates and debt renegotiations, the bank obtained a
reduction of around US$260 million in its liabilities and a
similar rise in its net worth, pointed out Saidon. He went on to
say that the average interest rate of its debts had fallen from
10% to 4% (Libor + 0.60%) with the restructuring and a grace
period of more than 4 years had been obtained.

Given the high level of acceptance, the bank does not need to
have the swap approved through an out-of-court agreement, or APE.

In another order, Hipotecario's vice-president, Eduardo Elsztain,
announced that an investment group composed by IFISA, IRSA and
Ritelco had bought George Soros7.5% stake in the bank.


CABLEVISION: Postpones Expiry Date of Debt Offer Once Again
-----------------------------------------------------------
Argentine cable operator Cablevision postponed for the tenth time
the expiry date for its debt-restructuring offer.

The Company filed a statement with the Buenos Aires stock
exchange Monday saying its offer, which expired on January 9, has
been extended until January 16. Cablevision's first debt deadline
expired October 10, 2003.

As of Jan 9, creditors holding about US$248.9 million out of
US$725 million in eligible bonds signed onto Cablevision's offer.
That means no creditor has signed up to the offer since December
29, when the previous deadline expired. The Company needs the
backing of creditors representing two-thirds of its debt in order
to have a court impose the deal on holdouts.

Cablevision is offering to buy back up to US$270 million of the
debts at 37% of their original value. The Company is willing to
spend US$54.9 million and the other US$45 million will come from
its two main shareholders, Hicks, Muse, Tate & Furst and Liberty
Media Corp.

In late 2003, sources close to the negotiations said Cablevision
was working on an improved deal with a select group of large
bondholders. Until the new offer is launched, the Company will
continue to extend the deadline on its current proposal, so that
low or even declining creditor agreement is not a worry for
Cablevision, sources say.


CARPINTERIA FERNANDEZ: Court Declares Company Bankrupt
------------------------------------------------------
Buenos Aires Court No. 20 ordered the bankruptcy of local company
Carpinteria Fernandez S.R.L., reports Infobae. Working with Clerk
No. 40, the court assigned local accountant Ms. Susana Graciela
Roiter as the Company's receiver.

Creditors are required to file their claims before February 24.
Credit verifications are done to determine the nature and amount
of the Company's debts. Results of the verification process will
be presented to the court through the individual reports, which
are due for filing on April 12.

The general report, which the receiver will prepare after the
individual reports are processed at court, must be submitted on
May 24. The Company's assets will then be liquidated to reimburse
creditors.

CONTACT:  Susana Graciela Roiter
          Marcelo T de Alvear 1430
          Buenos Aires


LARREINA E HIJOS: Court Sets Date for Informative Meeting
---------------------------------------------------------
Larreina e Hijos S.A. will hold an informative assembly on Feb.
13 this year, as ordered by Court No. 5 of the Civil and
Commercial Tribunal of San Miguel de Tucuman, reports Argentine
news portal Infobae.

The informative assembly is one of the last parts of a
reorganization process. This is done after the receiver's reports
have been filed and processed at court.


METROGAS: $600M of Bonds Rated `D' by Moody's
---------------------------------------------
A total of US$600 million of corporate bonds issued by Argentine
company Metrogas S.A. received `D' ratings from Moody's Latin
America Calificadora de Riesgo S.A. recently. The Company's
finances as of the end of September last year were used as basis
for the given rating.

The affected bonds are called "obligaciones negociables simples"
with undisclosed maturity date. The bonds were classified under
"Program", according to the Comisiona Nacional de Valores,
Argentina's securities regulator.


SEMA DE RESPONSABILIDAD: General Report Due March 3
---------------------------------------------------
The Civil and Commercial Tribunal of San Miguel de Tucuman in
Argentina requires the receiver for the bankruptcy of local
company Sema de Resposabilidad Limitada S.R.L. to file the
general report on March 3 this year. Argentine news portal
Infobae reports that Court No. 6 handles the Company's case.

The Company's receiver is to prepare the general report after the
individual reports, which contain the results of the credit
verification process, are processed at court. The Company's
assets face liquidation at the end of the bankruptcy proceedings.


* Argentina to IMF: Will Pay Only 25% of Defaulted Debt
-------------------------------------------------------
Argentine is serious about getting a 75% forgiveness of its
foreign debt. The Associated Press reported that the country has
told the International Monetary Fund (IMF) on Monday that it
would only pay 25% of its foreign debt.

The country's Economy Minister Roberto Lavagna said that the
country's debt is an obstacle to economic growth. Mr. Lavagna met
with IMF Managing Director Horst Koehler recently.

Argentine presented its initial debt offer last year, asking
creditors for a 75% haircut on almost US$100 billion in defaulted
debt. The country also said that it would not pay past due
interest, worth about US$18 billion.



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

CELG: Reaches $351M Debt Accord With Eletrobras
-----------------------------------------------
Brazilian power distributor Celg reached a BRL1-billion (US$351M)
debt-restructuring accord with federal electricity holding
company Eletrobras, Business News Americas reports, citing Celg
CFO Javahe de Lima.

At the same time, Goias state, which owns about 98% of Celg,
pledged to sell a minority stake in the Company to pay a BRL578-
million debt with Celg. The state may sell up to 41% of shares.

"We are going to Sao Paulo to invite consultants to evaluate the
Company and help us determine how the shares will be sold," Lima
said, without indicating when the sale could take place.

The total amount renegotiated with Eletrobras is BRL1.081
billion, made up of BRL379 million of unpaid bills to generator
Furnas, BRL418 million to Itaipu and BRL254 million of unpaid
loans and contributions of sector funds managed by Eletrobras.

Celg made a BRL30-million down payment on signing the agreement,
Lima said. The debt will be paid in up to 216 months with
installments coming to 8.26% of monthly gross revenues.

"Goias is one the fastest growing electricity markets in Brazil.
Last year it grew 7%, and if this keeps up, we might be able to
pay back Eletrobras before the due time," Lima said.

The debt rollover will allow Celg to conclude financial
restructuring and to double investments in 2004 to about BRL300
million from the previous year, Lima said.

CONTACT:  COMPANHIA ENERGETICA DE GOIAS (CELG)
          Rua 2 - Qd. A-37 - Edificio Gileno Godoi
          Jardim Goias - Goiania - Goias
          Brazil
          CEP: 74805-180
          Phone:  (0XX62)   243-2222
          Fax:  (0XX62) 243-2100
          Email: celg@celg.com.br
          Home Page: www.celg.com.br/
          Contact:
          Jose Walter Vazquez Filho,  President
          Phone: (0XX62) 243-1001
          Samuel Albernaz, Administrative Director
          Phone: (0XX62) 243-1031
          Javahe de Lima, Economic-Financial Dir./Investor
                                                  Relations
          Phone: (0XX62) 243-1041


ELETRONET: Geodex Confirms Delivery of Acquisition Proposal
-----------------------------------------------------------
A spokesperson from Geodex confirmed that the Brazilian telecoms
operator has delivered an offer to acquire carrier of carriers
Eletronet, relates Business News Americas.

Lightpar, a unit of Brazil's federal power sector holding
Eletrobras, put up Eletronet for sale in April. Eletronet filed
for bankruptcy after it failed to repay debts with supplier
creditors and Lightpar has blamed its partner in the venture,
U.S. power company AES, for not delivering on promises to inject
equity into the company.

The Company's debt load was BRL570 million (US$204 million) as of
April, with Lucent Technologies (NYSE: LU) and Japanese aluminum
cable maker Furukawa holding 85% and local banks Bradesco and
Safra holding another 10%.


EMBRATEL: Geodex Delivers Acquisition Proposal
----------------------------------------------
Brazilian telecoms operator Geodex confirmed local press reports
that it has delivered an offer to acquire local telco Embratel,
says Business News Americas.

The proposal was made as part of a consortium with undisclosed
partners.

Embratel's parent company MCI put its 19.3% stake in Embratel up
for sale in November, saying the Brazilian operator is not part
of its core business.

Other potential buyers of Embratel are workers' pension fund
Telos, Mexico's Telmex (NYSE: TMX) and a joint venture between
Brazil's three local telephony incumbents Spain's Telefonica
(NYSE: TEF), Brasil Telecom (NYSE: BRP) and Telemar (NYSE: TNE).

So far, details remain vague.

On Monday, local press speculated that Telemar would join forces
with Telmex to bid for Embratel. And Brazil's telecoms workers'
federation Fittel has asked antitrust authority Cade to block the
acquisition of Embratel by the three incumbents. The federation
claims the venture is a cover-up to erase Embratel as a
competitor in the local, long distance, and data segments.

According to share prices on Monday, MCI's stake in Embratel was
worth US$723mn. This price is high because investors are
speculating that the operator will be bought for a premium and
the Company's shares are trading at a 33% premium above the
valuation of U.S. telecoms operator AT&T (NYSE: T), which "is
probably the premier long distance company in the world," BBVA
analyst Jeffrey Noble said.


GERDAU: Unit Opens Civil Construction Service Center In Sao Luis
----------------------------------------------------------------
The unit has the capacity to process around 3,000 metric tons of
steel per year to service small and medium-sized works in the
state of Maranhao.

Comercial Gerdau, the largest steel distributor in Brazil, opened
a Prontofer concrete reinforcing steel fabricating facility in
Sao Luis, state of Maranhao, in December. The unit has the
capacity to process around 3,000 metric tons of steel per year to
service small and medium-sized works in the state.

The Prontofer production process uses automated technology to
replace the manual fabrication of steel reinforcing at building
sites. It ensures greater productivity and reduced costs.

CONTACT:  Press Office +55(51) 3323-2170
          imprensa@gerdau.com.br
          www.gerdau.com.br


GERDAU: Ensures Strategic Position in the Supply of Iron Ore
------------------------------------------------------------
On the afternoon of December 10, the Gerdau Group signed a
purchase agreement to acquire the iron ore mining rights of
Companhia Paraibuna de Metais, a company controlled by the
Votorantim Group. This US$ 30 million transaction gives Gerdau
access to its own source of iron ore, one of the main inputs of
the steel industry.

The assets involved in this transaction consist of real estate
and the cession of the company's mining rights, which include
mineral reserves located at Miguel Bournier, V rzea do Lopes and
Gongo Soco in the state of Minas Gerais. A total of 15 extraction
concessions are located in an area of 7,000 hectares.

According to the results of preliminary prospecting reports,
these iron ore reserves are estimated at 500 million metric tons,
and complementary surveys will be carried out to detail the full
potential of the mines. Studies are currently underway to
determine when mining operations will be begin, as well as future
levels of production and job creation.

"This new investment will not alter the current supply
structure," stated president Jorge Gerdau Johannpeter. "Supply of
iron ore for the full operation of the Gerdau mills is currently
guaranteed by more than ten companies in the Ferrous
Quadrilateral of Minas Gerais. The company's own production of
iron ore will complement this supply structure and is part of a
long-term strategy to ensure the adequate supply of iron ore to
meet the needs of future expansion of the Group."


PARMALAT BRAZIL: To Return Tomato Plant To Unilever
---------------------------------------------------
The Brazilian unit of financially embattled Italian dairy company
Parmalat will return a tomato processing plant to its original
owner Unilever Plc.

Parmalat Brasil SA agreed to buy Industria Brasileira de
Alimentos Ltda (Inbal), a plant in the western state of Goais, in
November last year from Unilever for an undisclosed sum. But due
to the "special situation that has hit the Company," the unit
decided to return Inbal to the Anglo-Dutch consumer goods group.

Earlier this month, the Company sold a yogurt factory in the
northeastern city of Natal to raise cash.

Parmalat Brasil, which has yet to post a profit since publishing
its earnings in 1998, failed to pay several of its milk suppliers
in the wake of its parent company's scandal. It has since pledged
to pay up by mid-January.


PARMALAT BRAZIL: Creditors Study Whether To Extend More Loans
-------------------------------------------------------------
Parmalat Brazil badly needs cash to pay new debts with milk
suppliers that are coming due very soon, Bloomberg News reports,
citing an article from Valor Economico newspaper. If it doesn't
get cash, the Company said it may start suspending operations in
Brazil as early as this week.

Creditor banks believe they won't be able to get their money back
if the Company stops operating. Therefore, they will have to
consider making new loans to the Brazilian unit.

In this light, the creditors have formed a committee to study
whether they should extend more credit to the Company as
estimates of the size of debt owed to banks and suppliers reached
US$1.5 billion, says the newspaper.

FleetBoston Financial Corp., Bank of America Corp., Citigroup
Inc., Deutsche Bank AG, J.P. Morgan Chase & Co. and Banco
Santander Central Hispano SA are the main creditors of Parmalat
Empreendimentos e Administracao and Parmalat Participacoes,
Parmalat's two holding companies in Brazil.

Sumitomo Corp., Banco do Estado do Rio Grande do Sul, Banco do
Brasil SA and Uniao de Bancos Brasileiros SA are the main
creditors of Parmalat's operating company in Brazil.


VOTORANTIM GROUP: $300M Senior Notes Rated 'B+'
-----------------------------------------------
Standard & Poor's Ratings Services said Monday that it affirmed
its 'BBB-' local currency and its 'B+' foreign currency corporate
credit ratings on Votorantim Group (Votorantim). Standard &
Poor's also said that it affirmed its 'brAAA' national scale
rating on Votorantim Group.

The outlook on the local-currency corporate credit rating and the
national scale rating is stable, and the outlook on the foreign
currency corporate credit rating is positive.

In addition, Standard & Poor's assigned its 'B+' rating to the up
to US$300 million senior notes to be issued by Voto-Votorantim
Overseas Trading Operations III Ltd.

The senior notes will be guaranteed jointly, severally,
unconditionally, and irrevocably by Votorantim Participa‡oes S.A.
(VPar), Votorantim Celulose e Papel S.A. (VCP), Cimento Rio
Branco S.A. (CRB), Cia Niquel Tocantins (CNT), and Cia Mineira de
Metais (CMM). The liability of each party is limited as follows:
VPar, 100% of the total outstanding amount of debt; VCP, 15%;
CRB, 45%; and CMM and CNT jointly, 40%. The companies providing
guarantees to note holders account for a significant portion of
the group's consolidated cash generation, and the rating on the
senior notes takes into full account the limited liability of
each party involved. In addition, because the group's revenues
are primarily originated at its home market Brazil (including the
cash generation of all operations described above), the rating
assigned to the senior notes essentially reflects the sovereign
credit rating on the Federative Republic of Brazil. As such, it
is constrained by the associated currency transfer and
convertibility risks despite the group's stronger credit profile
in local currency.

"Standard & Poor's has continually assessed Votorantim as above
average in its ability to remain protected against the
idiosyncrasies of the Brazilian economy, including the unstable
macroeconomic environment (erratic demand growth patterns,
volatile foreign exchange and interest rates, etc.) and volatile
financial and banking markets," said Standard & Poor's credit
analyst Reginaldo Takara. The group's resilience to rather
stressful conditions in Brazil fundamentally results from its
robust cash reserves and sound liquidity and expanding export
capabilities in many of its core businesses. In addition,
Votorantim has a well-diversified, commodity-based business
portfolio that benefits from very positive business fundamentals
(leading market shares, sound cost positions, vertical
integration, streamlined facilities and equipment, etc.),
including a very strong market position in the profitable
Brazilian cement market.

However, these positive factors are partly offset by the group's
revenues base, which is still essentially generated in its home
market--Brazil--despite initiatives to diversify geographically
notably in cement). Standard & Poor's believes that despite the
group's medium-term resilience to stressful economic environments
in Brazil, a prolonged economic crisis in the country could
potentially curtail the group's financial and operating
flexibility in the long run, as its ability to sustain cash
generation at traditionally strong levels and to execute adequate
investment decisions to support its long-term growth could be
impaired. Increasing risks associated with more volatile
businesses--namely market pulp, energy and banking--are also
factored into the local-currency corporate credit rating.

Votorantim is one of the largest corporate conglomerates in
Brazil, with operations in cement, pulp and paper, aluminum, zinc
and nickel, chemicals, frozen concentrated orange juice, energy,
and banking. The group is the leading domestic producer in most
segments in which it operates, with total revenues of US$3.9
billion and EBITDA of US$1.3 billion in the last 12 months ended
Sept. 30, 2003. Votorantim has consistently reported strong
profitability and cash-flow protection measures in the past
several years, reflecting the combination of a business portfolio
that overall compensates for cyclicality and commodity prices
volatility.

The group's liquidity is one of Votorantim's major strengths and
is adequate for the rating category. As of Sept. 30, 2003, the
group had total debt of US$3.5 billion, slightly more than half
of which is short-term. Votorantim is currently working on a
series of debt transactions to stretch debt tenors out over the
next several years (including the current senior notes issuance).
Potential refinancing risks associated with Votorantim's short-
term debt maturities are fairly mitigated by the group's strong
cash generation, with free operating cash flow (estimated at
around US$500 million for 2003 and considering discretionary
capital expenditure in capacity expansions) and a very robust
cash position of US$2.7 billion as of Sept. 30, 2003. These cash
reserves are partly invested in the funds administered by Banco
Votorantim (the group's bank) or directly invested in it but are
essentially available as a liquidity cushion to face any
unfavorable conditions in Brazilian financial markets. Votorantim
has consistently reported high cash reserves of more than US$2
billion over the past five years.

The stable outlook on the local-currency corporate credit rating
and the national scale rating reflects the expectation that the
improving economic and financial environment in Brazil in 2004,
as well as favorable prospects for many of the commodities
produced by the group, will allow Votorantim to sustain--or even
strengthen further--its profitability and free operating cash
generation (and, as a result, liquidity). Although Votorantim is
expected to invest in capacity expansion and acquisitions
continually to improve its business position at its core
operations, Standard & Poor's also expects the group to retain
its overall conservative financial policy, as demonstrated by its
reasonably low gross indebtedness compared with cash generation
as well as its high liquidity. The positive outlook on the
foreign currency corporate credit rating reflects the outlook on
the sovereign rating of the Federative Republic of Brazil.

ANALYST:  Reginaldo Takara
          Sao Paulo
          Phone: (55) 11-5501-8932

          Milena Zaniboni
          Sao Paulo
          Phone: (55) 11-5501-8945



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C H I L E
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LE MANS: SVS Orders Annuities Portfolio Liquidation
---------------------------------------------------
The annuities portfolio owned by bankrupt Chilean life insurer Le
Mans Desarollo will be auctioned off, as ordered by the country's
securities and insurance regulator, the SVS. SVS Chief, Alejandro
Ferreiro said that the agency will ensure "the most efficient and
successful tender process", according to local newspaper La
Tercera.

The liquidation comes after the Company was confirmed bankrupt.
Le Mans was formerly part of Inverlink group, which went down in
a financial scandal. Le Mans was intervened in March last year
after it was revealed that sister company Inverlink Corredoras de
Bolsa owed the insurer US$16.5mn, reports Business News Americas.

The regulator issued the liquidation order after the Company
failed to reverse a CLP13.2 billion (US$23.6 milion).

"It's probable that the impact on the annuities portfolio will
fall as the economy grows, leading to an increase in the state
minimum guarantee, and the state, obliged to pay, will absorb the
difference," said Mr. Ferreiro.


MADECO: Forecasts 10% Rise in Sales This Year
---------------------------------------------
MADECO SA, Chile's biggest copper wire manufacturer, expects to
see a 10% increase in sales this year compared to last year's
US$400 million due to an upturn in regional economic growth,
reports Reuters.

Chief Executive Tiberio d' Allolio said the Company's expected
net loss in 2003 would be smaller than the previous year, when it
was hard hit by financial crises in Argentina and Brazil.

Madeco, a unit of financial conglomerate Quinenco, a leading
Latin American manufacturer of finished and semi-finished non-
ferrous products based on copper, copper alloys and aluminum. The
Company is also a leading manufacturer of flexible packaging
products for use in the packaging of mass consumer products such
as food, snacks and cosmetics.

CONTACT:  Marisol Fernandez
          Investor Relations
          Voice: (56 2) 520-1380
          Fax: (56 2) 520-1545
          E-mail: mfl@madeco.cl
          Web Site : www.madeco.cl



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

ERAS: Executive Slams Reports Suggesting Liquidation
----------------------------------------------------
Water utility Eras in Colombia's Cordoba department will not be
liquidated, Eras general manager Maria Bernarda Espitia said in
response to an earlier report released by local newspaper El
Universal.

Business News Americas relates that El Universal's report
suggested that Cordoba department governor, Libardo Lopez
Cabrales, will support the liquidation of Eras to solve water
problems in Cerete, Sahagun, Cienaga de Oro and San Carlos
municipalities.

But Espitia contradicted the El Universal report, saying that a
process to find an operator for the utility under a 20-year
concession was moving forward and that the bidding rules will be
available for purchase until January 23, Espitia said. The
deadline for offers is January 30 and one company has bought
bidding rules so far, Espitia added.

The renewable concession contract is aimed at improving
waterworks service and coverage in Cordoba, which ranges from 50%
to 90%. Offers will be adjudicated on March 19.

Earlier this year, the national government increased its
financial support for the concession to COP23 billion (US$7.96
million) in an effort to sweeten the pot for bidders, after a
previous bidding round in May was called off when participants
failed to submit bids.


* IMF Completes Second Review of Colombia's Stand-By Arrangement
----------------------------------------------------------------
The Executive Board of the International Monetary Fund (IMF)
completed Monday the second review of Colombia's performance
under a two-year SDR 1.5 billion (about US$2.2 billion) Stand-By
Arrangement that was approved in January 13, 2003 (see Press
Release No. 03/04). This decision entitles Colombia to the
release of a further SDR 96.7 million (about US$145 million),
which brings the total amount disbursed under the program to SDR
774 million (about US$1.2 billion). The Colombian authorities
have treated the arrangement as precautionary and not made any
drawings.

In completing the review, the Executive Board approved Colombia's
request to waive the nonobservance of the structural performance
criterion on the submission to congress of a revised budget code
before the end of October 2003. Draft legislation on reforming
the budget code was subsequently submitted to congress before the
end of December 2003. The Executive Board also approved
Colombia's request to waive the applicability of the performance
criteria for the end of December 2003 due to the unavailability
of the information at the time of the Board's discussion.

Following the Executive Board's discussion on Colombia, Anne
Krueger, First Deputy Managing Director and Acting Chair, said:

"The government of Colombia has made commendable progress in
carrying out a strong economic reform program aimed at faster
economic growth and improved social equity. This program has
begun to deliver encouraging results, with strong growth in
investment and economic activity and a significant decline in
unemployment.

"Economic policies in 2003 were broadly on track. The overall
public sector deficit is expected to have declined, reflecting
both revenue measures and firm control over expenditures. The
monetary policy conducted by the Banco de la Republica has
contributed to lower inflation. All quantitative performance
criteria for end-September 2003 were observed, and it is expected
that the performance criteria for end-December will also have
been observed. Structural reforms proceeded largely as scheduled.

"Economic policies for 2004 aim to support a further pick up in
economic growth and a continued decline in inflation. The
government and congress have put in place revenue and expenditure
measures designed to lower the overall public sector deficit to
two and one half percent of GDP in 2004. Moreover, the
authorities intend to announce a further strengthening of the
primary surplus for 2005, with a view to achieving a significant
reduction in public debt as a share of GDP by 2010. Monetary
policy will continue to be conducted in the context of the
inflation targeting framework, together with a flexible exchange
rate.

"Colombia's economic reform program and the government's firm
intention to maintain the pace of structural reform have helped
reduce the risks to the economic outlook. Firm implementation of
the program will, nevertheless, remain necessary to lay the basis
for sustained growth and improved equity. In particular, the
adoption of the revised budget code, the rationalization of
Colombia's system of fiscal decentralization and further
strengthening of the pension system will be critical to moderate
the growth of public expenditure and preserve fiscal
sustainability. In addition, steps to broaden the revenue base
and simplify many of the existing taxes would contribute to
achieving a durable strengthening of public revenues."

CONTACT:  INTERNATIONAL MONETARY FUND
          700 19th Street, NW
          Washington, D.C. 20431 USA

          IMF EXTERNAL RELATIONS DEPARTMENT
          Public Affairs
          Phone: 202-623-7300
          Fax: 202-623-6278

          Media Relations
          Phone: 202-623-7100
          Fax: 202-623-6772


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

PETROECUADOR: Seeks Responses to Proposed Tenders
-------------------------------------------------
Petroecuador, Ecuador's state oil enterprise seeks comments on
its proposed tenders. Citing a company statement, Business News
Americas related the Company will receive suggestions and
criticisms on its proposed tenders for its Panacocha oil field
and three marginal fields located in the provinces of Sucumbios
and Orellana until February.

Petroecuador said it needs to obtain approval for the tenders,
which would be launched after the consultation, the report added.



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

GRUPO TMM: Announces Majority Support for Bond Restructure
----------------------------------------------------------
Grupo TMM, S.A. (NYSE:TMM) and (BMV:TMM A; "TMM") announced
Monday that it has received voting agreements executed by holders
of approximately 64 percent of the aggregate outstanding
principal amount of its 9 1/2 percent Notes due 2003 and its 10
1/4 percent Senior Notes due 2006 (together, the "Existing
Notes"). As previously announced, bondholders who execute voting
agreements agree to support the restructuring proposed by Grupo
TMM and agreed upon with the Ad Hoc Bondholders' Committee,
subject to the terms and conditions of the voting agreements.

As announced on December 18, 2003, the voting agreements provide
that the Company will implement the restructuring through a
registered exchange offer of new Senior Secured Notes due 2007
for the Existing Notes, together with a consent solicitation to
amend the indenture governing any untendered Senior Notes due
2006. If the conditions to the exchange offer are not met or
waived, the restructuring will be implemented through a
prepackaged plan in the United States or, if the Company elects,
in Mexico.

The voting agreements became effective upon execution by holders
of a majority in aggregate principal amount of the outstanding
Existing Notes. As a result, the Company is proceeding with the
restructuring on the terms set forth in the voting agreements. In
addition, within two business days, the Company will deposit into
escrow approximately $21.1 million principal amount of the new
Senior Secured Notes due 2007, for the benefit of holders who
tender their Existing Notes in the exchange offer or, under
certain circumstances, who have entered into voting agreements
and are not in default thereunder. These notes, which represent a
5 percent incentive payment for participation in the
restructuring, will be released from the escrow to eligible
holders of Existing Notes upon completion of the restructuring,
or earlier in certain circumstances.

Questions regarding the proposed restructuring should be directed
to 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.

CONTACT:  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
          HOULIHAN LOKEY HOWARD & ZUKIN CAPITAL
          1930 Century Park West
          Los Angeles, California   90067
          Telephone:  (310) 788-5338
          Email:  afragen@hlhz.com

          Oscar A. Mockridge
          HOULIHAN LOKEY HOWARD & ZUKIN CAPITAL
          685 Third Avenue
          New York, New York 10017
          Telephone: (212) 497-4175
          Email:  omockridge@hlhz.com


TV AZTECA: U.S. SEC Initiates Transaction Inquiry
-------------------------------------------------
Canada's Nortel Networks said it was advised Monday by U.S.
securities regulators that an investigation into deals involving
Nortel, Mexican broadcaster TV Azteca, Unefon and investment firm
Codisco Investments has begun, relates Reuters.

"Nortel Networks has been advised by the U.S. Securities and
Exchange Commission that the agency has initiated an inquiry into
certain transactions involving TV Azteca, Unefon, Codisco
Investments and Nortel Networks," Nortel spokeswoman Christina
Warren said.

"We will cooperate fully with any requests received from the SEC
regarding this matter," she added.

The inquiry stems from a July 2003 transaction in which a group
of investors saved Mexican cell phone company Unefon from
bankruptcy by buying its debt from Canadian equipment supplier
Nortel.

In the meantime, the National Banking and Securities Commission
(CNBV) -- Mexico's version of the SEC -- said it was "analyzing"
information related to the Unefon debt restructuring and its
spin-off from TV Azteca.

TV Azteca owns 46.5% of Unefon but plans to spin off that stake.

"Since late last year we have been following Unefon's debt deal
with Nortel as well as the Unefon spin-off," CNBV spokesman
Miguel Angel Garza said without indicating whether the local
regulator will launch a formal probe into the matter.



=======
P E R U
=======

MINERA VOLCAN: Acknowledges Receipt of Glencore Loan
----------------------------------------------------
Peruvian zinc miner Volcan informed the country's securities
regulator Conasev that it has received the previously announced
US$40 million credit from Switzerland's Glencore International,
reports Business News Americas.

The loan will be paid off over seven years with two years' grace
at a rate of Libor plus 3.5% and will be guaranteed by Volcan's
Andachagua assets, part of its Yauli unit in central Peru's Junin
department.

Glencore agreed to provide a loan as part of a deal to help
Volcan out of its financial troubles.

Meanwhile, Volcan announced that it has reached an agreement to
restructure a US$110-million loan with a consortium of banks led
by Germany's West LB.

CONTACT:  COMPANIA MINERA VOLCAN
          Av Gregorio Escobedo
          710 Jesus Mara
          Lima, Peru
          Tel: +51 1 219-4000
          Fax: +51 1 261-9716
          Contact:
          Mr. FMG Sayan (Francisco), Chairperson



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

PDVSA: To Invest $5B This Year
------------------------------
Venezuelan state oil company Petroleos de Venezuela SA (PDVSA)
will more than double this year, last year's investment of
US$2.19 billion, reports Bloomberg News.

At a press conference in Caracas, Energy and Mines Minister
Rafael Ramirez revealed that PDVSA will invest US$5 billion this
year to boost output and overhaul refineries.

The state oil company plans to up its investment this year on
social programs to US$616 from US$29 million in 2003, Ramirez
said.

Net income from national operations this year is forecast to rise
to US$4.37 billion from US$3.63 billion last year, while revenue
from national operations is expected to rise to US$21 billion
from US$19.4 billion in 2003, Ramirez said.


PDVSA: Venezuelan President Confirms Sale Intent
------------------------------------------------
Venezuela's President Hugo Chavez said he will push through with
the sale of state oil company PDVSA's 50% ownership in Germany's
Ruhr Oel Gmbh to Russia's Alfa Group, relates Business News
Americas.

The sale agreement, which is expected to bring in US$1 billion,
was announced in December. German company Veba Oel holds the
other 50% of Ruhr Oel, which operates refineries and
petrochemical plants at various locations in Germany.

"From my point of view, holding onto this refinery is not
justified. This is part of the unscrupulous management of PDVSA -
this refinery is worth a lot, more than US$1bn, and we are in
contact with other countries because we want to sell it," Chavez
said in his Alo Presidente radio address Sunday.

The government would use the proceeds from the sale to invest in
PDVSA projects or other development projects in Venezuela.



               ***********


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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