/raid1/www/Hosts/bankrupt/TCRLA_Public/040120.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

          Tuesday, January 20, 2004, Vol. 5, Issue 13

                          Headlines

A R G E N T I N A

ACINDAR: To Issue $80M in Negotiable Bonds as Part of Debt Deal
BANCO HIPOTECARIO: S&P Moves Ratings to 'SD' From 'D'
MULTICANAL: Verifies Petition For Relief Under Chapter 11 Sec.304
MULTICANAL S.A.: Issues Section 304 Petition Summary
PARMALAT ARGENTINA: Govt. Seeks Detailed Report on Situation

PILAR PARTES: Files "Concurso Preventivo" Motion at Court


B R A Z I L

BRASKEM: Incorporates Trikem; Forwards Corporate Integration
CEMAR: Aneel Suffers Another Sale Setback
EMBRATEL: Slim's Investment in MCI Won't Affect Bidding
PARMALAT BRAZIL: Makes $9M Debt Payment To Dairy Farmers


C H I L E

COCA-COLA EMBONOR: S&P Places Ratings on CreditWatch Negative


M E X I C O

DESC: Finalizes Sale of Aluminum Wheels Business
MEXICANA DE AVIACION: To Maintain Number of Employees This Year


P E R U

MINERA VOLCAN: Stock Exchange Suspends Trading


P U E R T O   R I C O

CENTENNIAL COMMUNICATIONS: Announces Pricing on $325M Notes Offer

     -  -  -  -  -  -  -  -

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

ACINDAR: To Issue $80M in Negotiable Bonds as Part of Debt Deal
---------------------------------------------------------------
Argentina's largest long steelmaker Acindar will issue US$80
million in negotiable bonds as part of a debt restructuring deal
signed with creditors in December, reports Business News
Americas.

The operation will entail leading shareholders injecting fresh
funds into the Company for eventual capitalization.

"We need to issue these negotiable bonds, that are subordinate to
the company's main debts," Acindar's legal advisor Carlos Gomez
said.

"The funds will be used for financing normal business
transactions and meeting debt commitments with creditors," Gomez
added.

The placement would begin with the preferential application
period that starts on January 26 and ends on February 4 this
year.

According to Gomez, Brazilian long steelmaker Belgo-Mineira
(Bovespa: BELG3), which controls 20% of Acindar, does not intend
to convert its negotiable bonds into stock, nor exercise other
options to increase its share in the Argentine company.

"They have not given up this right, they are just not intending
to increase their stake. In any case there is no obligation for
them to give up this right," Gomez said.

Other shareholders of Acindar are Argentina's Acevedo family
(20%) and the World Bank's IFC (7%). The rest is floated on the
stock market.

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


BANCO HIPOTECARIO: S&P Moves Ratings to 'SD' From 'D'
-----------------------------------------------------
Standard & Poor' s Ratings Services said Friday that it assigned
its 'CCC' rating to the new securities issued by Banco
Hipotecario S.A. (BH) as a result of the debt exchange completed
by the bank, including its $277.3 million long-term notes due
2013, $448.2 million long-term notes due 2013, and $298.7 million
guaranteed notes due 2010. The securities that were subject to
the debt exchange are not yet extinguished and remain in default,
as a result of which the counterparty credit ratings on BH were
removed from 'D' (default) and placed in 'SD' (selective
default).

BH is one of the financial institutions that suffered most from
the measures taken by the Argentine government at the beginning
of 2002. The compulsory pesification of the loans in the bank's
asset book created havoc on BH's ability to pay its debt, since
the bank is largely funded by cross-border dollar-denominated
debt not subject to pesification. As a result, the asymmetric
devaluation produced an unsustainable currency gap and
significantly eroded the bank's previously strong capital base.

In August 2002, all ratings on BH were placed in default as a
result of the bank's announcing the suspension of payments on all
of its debt issues, with the objective of giving a more equitable
treatment to all of its creditors in the context of a
comprehensive debt-restructuring process. "Despite the challenges
it implied, the debt exchange has been successfully completed and
has allowed the bank to reduce total debt burden and to extend
maturities, significantly improving the institution's financial
profile," said Standard & Poor's credit analyst Carina Lopez.

Investors holding $906 million of total existing securities
accepted the exchange, which represents a high participation of
93% of total bonds. At the same time, 100% of creditor banks
participated in the simultaneous bank debt restructuring,
representing an additional amount of $302.4 million. The
treatment of bondholders that have not participated in the
exchange will not be defined until the local legal procedures
(acuerdo preventivo extrajudicial) finalize, and therefore remain
in default. Once these original obligations either extinguish or
become current once again, the counterparty credit ratings on BH
will be raised to 'CCC' from 'SD'.

The 'CCC' rating on the new securities, issued Jan. 14, 2004,
indicates that the difficulties that the bank will face in
complying with the terms and conditions of its restructured
liabilities will be conditioned by the still-uncertain operating
environment in Argentina and the bank's high exposure to the
sovereign's creditworthiness originated mostly by the government
bonds received as compensation for the pesification, as is the
case with the rest of the financial system.

BH is a public company. Prior to the Argentine financial crisis,
the bank was the leader in the individual residential mortgage
loans segment, with a total portfolio of more than $4 billion,
and a market share of around 40%.

ANALYST:  Carina Lopez
          Buenos Aires
          Phone: (54) 11-4891-2118

          Ursula M Wilhelm
          Mexico City
          Phone: (52) 55-5279-2007  


MULTICANAL: Verifies Petition For Relief Under Chapter 11 Sec.304
----------------------------------------------------------------
The Board of Directors (the "Petitioner") of Multicanal S.A.
("Multicanal" or the "Debtor"), as the foreign representative of
the Debtor, an Argentine company that is currently seeking
confirmation in Argentina of an Acuerdo Preventico Extrajudicial
(APE"") in a proceeding (the "APE Proceeding") under Chapter VII,
Title II of Law No. 24.522, as amended (the "Argentine Insolvency
Law") pending under before the Juzgado Comercial No. 4,
Secretaria No. 8 (The Federal Commercial Trial Court No. 4) in
and for the city of Buenos Aires, Argentina (the "Argentine
Court"), files this verified petition (the "Petition") pursuant
to Section 304 of Title 11 of the United States Code 11 USC Sec.
101 ct seq. (the "Bankruptcy Code")

     (1) commencing a case ancillary to a foreign proceeding
pursuant to 11 U.S.C.304(a)
     (2) requesting this Court to grant injunctive relief
pursuant to 11 USC 304(b) to enjoin creditors from commencing or
continuing any actions against the Debtor to facilitate the
restructuring of the Debtor's affairsin the APE Proceeding.

Contemporaneously with the filing of this Petition, the
Petitioner has filed:
     (1) a Motion for an ORder to Shaw Cause and Temporary
Restraining Order Prohibiting All Persons From Commencing or
Continuing Any Action Against the Debtor or its Property in the
United States and
     (2) a Motion for Preliminary Injunction (together, the
"Motion"), seeking, inter alia, a preliminary injunction
enjoining the commencement or continuation of any action against
the Debtor. Contemporaneously herewith, the Petitioner also filed
and incorporates herein by reference the following documents in
support of the Motions and this Petition:
          (a) the Declaration of Adrian Meszaros in Support of
Petition Filed Pursuant to Section 304 of the Bankruptcy Code.
          (b) the Declaration of Javier Lorente Regarding
Argentine Insolvency Law,
          (c) the Declaration of Lindsee P. Granfield In Support
Order To Show Cause And Temporary Restraining Order
          (d) the Declaration of Timothy S. Mehok in Support of
the Petition Filed Pursuant to Section 304 of the Bankruptcy
Code.

To view full copy of petition:
http://bankrupt.com/misc/Petition.pdf


MULTICANAL S.A.: Issues Section 304 Petition Summary
----------------------------------------------------
Petitioner: Board of Directors of Multicanal S.A.

Debtor: Multicanal S.A.
Avalos 2057
(1431) Buenos Aires
Argentina

Case No.: 04-10280

Type of Business: The Debtor is an Argentine multiple cable
                  systems operator with its principal
                  operations in Argentina and other parts of
                  Latin America, a part of Grupo Clarin SA.
                  See http://www.multicanal.com.ar/

Section 304 Petition Date: January 16, 2004

Court: Southern District of New York (Manhattan)

Judge: Allan L. Gropper

Petitioner's Counsel: Lindsee Paige Granfield, Esq.
                      Cleary, Gottlieb, Steen & Hamilton
                      One Liberty Plaza
                      New York, NY 10006
                      Tel: 212-225-2000
                      Fax: 212-225-3499

Estimated Assets: More than $100 Million

Estimated Debts:  More than $100 Million


PARMALAT ARGENTINA: Govt. Seeks Detailed Report on Situation
------------------------------------------------------------
The Argentine government called on Parmalat Argentina's
management to provide a detailed and certain report on the
situation of the Company locally.

Accordingly, the authorities want to get to know the possible
consequences of Parmalat's global crisis in Argentina and take
the necessary preventive actions so as to lessen the potential
impact on the dairy sector.

Jose Linari, who is in charge of dairy issues in the Agriculture
Secretariat (SAGPyA), admitted the authorities are worried about
the future of Parmalat's operation in Argentina.  

They count with little and second-hand information on the
situation of Parmalat in the country. They know that there seem
to be no clues of a possible impact on Argentina for the moment.
But they want to hear from Parmalat.

One issue the SAGPyA wants to ask Parmalat about is if the
Argentine unit is one of the subsidiaries the Italian food giant
plans to close down.

Parmalat Argentina's spokespersons have been telling local press
that the closing down of the local unit is not being contemplated
at all. They even said they are planning to launch new products
locally in a short term.


PILAR PARTES: Files "Concurso Preventivo" Motion at Court
---------------------------------------------------------
Pilar Partes S.A., which is based in Buenos Aires, seeks court
permission to undergo reorganization. Local news portal Infobae
reports that the Company filed its motion for "Concurso
Preventivo" at the city's Court No. 6. Clerk No. 12 assists the
court on the case. The report, however, did not mention whether
the court is likely to approve the petition.



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

BRASKEM: Incorporates Trikem; Forwards Corporate Integration
------------------------------------------------------------
Braskem S.A. (NYSE: BAK) (BOVESPA: BRKM5) (LATIBEX: XBRK), the
leading manufacturer of thermoplastic resins in Latin America,
positioned among the five largest private-sector industries in
Brazil, announced that, at an Extraordinary shareholders' Meeting
held Thursday, the shareholders of Braskem S.A. ("Braskem") and
Trikem S.A. ("Trikem") approved the incorporation of Trikem by
Braskem.

This merger concludes successfully one of the most important
steps of Braskem's integration process, as well as of the
restructuring of the Brazilian petrochemical sector. By means of
the conclusion of this incorporation, Braskem's free float will
increase up to 33% from the current 25% level. Such outcome is in
line with the company's goal to obtain higher liquidity levels
for its shares and to increase its trading potential in the
international capital markets.

"The incorporation of Trikem further strengthens Braskem's
position as the regional market leader, with a fully integrated
business model, focused on value creation for all its
shareholders", says Jose Carlos Grubisich, Braskem CEO. One of
the main benefits provided by this operation is to speed-up the
capture of synergies originated from Braskem's integration
process, further increasing the company's competitiveness.

The exchange ratio offered by Braskem to Trikem preferred
shareholders was of 3.47 Trikem shares per one preferred class
"A" Braskem share, which was the same exchange ratio used in
previous societary steps involving the migration of holders of
Trikem common stock into Braskem. "Aligned with Braskem's own
Public Commitment since its inception, Trikem's merger follows
modern principals of corporate governance, aiming at aligning
interests of both companies' shareholders", says Paul Altit,
Braskem Finance and Investor Relations Vice-President.

One of the resulting benefits of the incorporation of Trikem is
to simplify Braskem's corporate structure, facilitating the
understanding of the Company's performance indices by the
financial community. Furthermore, shareholders choosing to
migrate their equity interests to Braskem will enjoy 100% tag-
along rights offered by the company to all shareholders, in the
event of a change in Braskem's control, preserving their
interests in equal conditions to the controlling shareholders.

In March 2003, Braskem completed the incorporation of OPP,
Nitrocarbono and ESAE. Last July, the company acquired the
shareholding stake that the Japanese group Mitsubishi held in the
voting stock of Trikem and Polialden, while at the same time
entering into an agreement with Nissho Iwai to migrate its equity
interest to Braskem. On December 4, Braskem successfully
concluded a public offering of the remaining Trikem common stock
in the market, which was followed now by the current merger.

In 2003, Braskem level II ADRs listed at the NYSE presented the
best performance world-wide, whilst, in the same period, its
shares traded at BOVESPA (Sao Paulo Stock Exchange) registered
one of the best performances overall in the Brazilian stock
market. Recently, Braskem shares daily trading volumes have been
consistently increasing in both international and local stock
markets. With the incorporation of Trikem, Braskem attains a
market capitalization of approximately US$ 2.0 billion.

Braskem, a world-class petrochemical company, is the leader in
thermoplastic resins in Latin America and is positioned among the
five largest private-sector industries in Brazil. With 13
industrial plants located in the country, the company has an
annual production capacity of 5 million tons of chemical and
petrochemical products.

CONTACT:  Jose Marcos Treiger, Investor Relations Officer
          Phone: (5511) 3443 9529
          Fax: (5511) 3443 9532
          Email: jm.treiger@braskem.com.br

          Vasco Barcellos, Investor Relations
          Phone: (5511) 3443 9178
          Fax: (5511) 3443 9532
          Email: vasco.barcellos@braskem.com.br

          Luiz Henrique Valverde, Investor Relations
          Phone: (5511) 3443 9744
          Fax: (5511) 3443 9532
          Email: luiz.valverde@braskem.com.br



CEMAR: Aneel Suffers Another Sale Setback
-----------------------------------------
Brazil's electricity regulator Aneel continues to struggle in
carrying out the sale of Maranhao state power distributor Cemar,
Business News Americas indicates.

Last week, the regulator was forced to put off the process, the
latest in a series of delays for the transfer of Cemar's control
since Aneel assumed its management in August 2002 after US
utility PPL Global walked away from the company.

The suspension followed two injunctions issued by federal courts
that said neither of the two bidders, US company Mt Baker
Enterprises and Brazilian company SVM Participacoes e
Empreendimentos, controlled by GP Investimentos, proved they are
in the necessary financial condition to bring Cemar back to
financial health and make the necessary operational investments.

Bidders were scheduled to hand in documents Jan. 16 confirming
their proposals for resolving Cemar's financial situation.

Cemar has debts totaling BRL884 million (US$316mn) and negative
net worth of BRL148 million.

Aneel said it would appeal the courts' decision.

CONTACT:  COMPANHIA ENERGETICA DO MARANHAO
          Av. Colares Moreira, 477
          65075-441 - Sao Luiz- MA
          PHONE: (98) 217-2119
          FAX: (98) 235-3024
          WEBSITE: http://www.cemar.com.br/

CREDITORS:  CENTRAIS ELETRICAS BRASILEIRAS S.A. - ELETROBRAS
            Avenida Presidente Vargas 409, 13 Andar
            20071-003 Rio de Janeiro Brazil
            Phone: (21) 2514-5151
            Fax: +55-21-2242-2697
            Home Page: http://www.eletrobras.gov.br
            Contacts:
            Cladio da Silva avila, President
            Jose Alexandre Nogueira de Resende, Director of
                                  Financial and Market Relations

            Investor Relations Division
            Phone: (0XX21) 2514-6207 / 2514-6333
            Av. Presidente Vargas, 409 - 9  andar
            20071-003 - Rio de Janeiro - RJ
            Email: arlindo@eletrobras.gov.br

            CENTRAIS ELETRICAS DO NORTH DO BRAZIL - ELETRONORTE
            Av. Presidente Vargas, 489 -13  andar.
            20071-003- Rio do Janeiro RJ
            Phone: + (55+61) 429 5139
            Fax: +(55+61) 328 1373
            E-mail: elnweb@eln.gov.br
            Home Page: http://www.eln.gov.br/
            Contact:
            Mr. Arlindo Soares Castanheira, Investor Relations
            Phone: 55 21 2514.6331
                   55 21 2514.6333
            Fax: 55 21 2242.2694
            E-mail: arlindo@eletrobras.gov.br


EMBRATEL: Slim's Investment in MCI Won't Affect Bidding
-------------------------------------------------------
The bidding on Embratel Participacoes SA, the Brazilian unit of
U.S. telecommmunications giant MCI, is unlikely to be affected by
Mexican Carlos Slim's investment in MCI, Dow Jones reports,
citing analysts.

As reported, Slim, owner of Mexico's biggest fixed-line phone
service provider Telefonos de Mexico SA (Telmex), owns up to
US$1.7 billion in face value of defaulted bonds from MCI,
formerly known as WorldCom Inc. (WCOEQ). It's likely that as part
of the MCI reorganization process, Slim would be able to swap
these bond holdings for a share in the restructured company.

Last month, Slim's Telmex announced it was interested in buying
Embratel, Brazil's largest long-distance provider. Reports in the
Brazilian press have speculated that Slim, Latin America's
richest man, may have an advantage in the bidding for Embratel if
he has a holding in MCI.

But according to Jeffrey Noble, telecommunications analyst for
Latin America for BBVA Securities in Sao Paulo, Slim "could not
serve on the board of MCI and therefore he couldn't influence
anything having to do with Embratel." Slim is "already on the
board of SBC and there would be antitrust and FCC issues," he
added.

Last October, Slim bought over US$100 million of shares in SBC
Communications Inc. (SBC), the second-largest U.S. local
telephone company. Slim has been an SBC director since 1993.

"Even if he could sit on the board of MCI, he'd have to have to
keep an arm's length from any discussions about the Embratel sale
because minority shareholders could sue him otherwise," commented
Noble.

Dow Jones relates that rules of the U.S. Federal Communications
Commission, as well as antitrust regulations, would preclude Slim
from sitting on the boards of two competing telecommunications
companies in the U.S.

Slim would have to give up his investment in SBC in order to sit
on the board of MCI, or vice-versa. Even then, he would have to
increase his MCI stake to a majority position in order to have
any say over the company's sale of Embratel.

CONTACT:   Silvia M.R. Pereira, Investor Relations
           Tel: (55 21) 2121-9662
           Fax: (55 21) 2121-6388
           Email: silvia.pereira@embratel.com.br
                  invest@embratel.com.br


PARMALAT BRAZIL: Makes $9M Debt Payment To Dairy Farmers
--------------------------------------------------------
Parmalat Brasil Industria de Alimentos, a unit of Italian food
group Parmalat, paid Brazilian dairy farmers US$9 million as
promised Friday.

In a statement, the unit said that the payment included BRL1.7
million it owed a milk cooperative in Rio de Janeiro from
December, but that it was also still negotiating with a
cooperative in Goias state for a payment due on Friday.

Parmalat Brasil suspended payments to its non-dairy suppliers and
the Rio de Janeiro cooperative on Dec. 15 after its parent
company unveiled a multibillion-euro gap in its accounts. It is
the second-biggest buyer of milk in Brazil.

Parmalat Brasil has said it is still negotiating with non-dairy
suppliers and with its financial creditors, who have formed a
committee to negotiate with the Company and have asked KPMG to
audit its books.



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

COCA-COLA EMBONOR: S&P Places Ratings on CreditWatch Negative
-------------------------------------------------------------
Standard & Poor's Ratings Services placed Friday its 'BBB-'
ratings on Chilean Coke bottler Coca-Cola Embonor S.A. (Embonor)
on CreditWatch with negative implications following the recent
announcement of the sale of Embonor's bottling operations in
Peru.

Standard & Poor's anticipates that the ratings could be lowered
if the positive credit impact of the expected reduction in debt
following the sale of Embotelladora Latinoamericana S.A. does not
compensate for the loss of strategic relevance for the Coke
system as a whole derived from a lower scale.

"Standard & Poor's will evaluate the terms of the sale and
Embonor's expected pro forma financial and operating profile to
determine the appropriate rating level," said Standard & Poor's
credit analyst Silvina Aldeco-Martinez.

Embonor is the fifth-largest Coke bottler in Latin America and
the second-largest Coke bottler in Chile, where it generates
about 52% of its cash.

ANALYST:  Silvina Aldeco Martinez
          Buenos Aires
          Phone: (54) 114-891-2126

          Marta Castelli
          Buenos Aires
          Phone: (54) 114-891-2128  



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

DESC: Finalizes Sale of Aluminum Wheels Business
------------------------------------------------
DESC, S.A. de C.V. (NYSE: DES; BMV: DESC) announced Friday that
it successfully completed the sale of the assets of the aluminum
wheels business in its Auto Parts sector (Hayes Wheels Aluminio,
S.A. de C.V.) to Hayes Lemmerz International, Inc. ("Hayes
Lemmerz"), while acquiring Hayes Lemmerz's participation in Hayes
Wheels Acero, S.A. de C.V. (Steel Wheels). This transaction also
marks the conclusion of the Company's association with Hayes
Lemmerz International, Inc.

This transaction will result in an extraordinary expense of
approximately US$ 15 million, which will be reflected in 2003
results, since the sale is for less than book value. Desc's cash
flow is expected to immediately benefit from this transaction
since Hayes Wheels Aluminio, S.A. de C.V. was operating at a
loss, thus this loss is expected will be compensated in the 2004
period.

The revenues from this transaction will mainly be used to
decrease debt between the business and Desc and to fortify Desc's
financial structure.

This transaction is further evidence of Desc's commitment to
recovering its profitability levels as soon as possible, and is
in line with the Company's strategic and its focus on its main
businesses.

Desc, S.A. de C.V. is one of Mexico's largest industrial groups
with sales of approximately US$ 2 billion during 2002, and over
16,000 employees. Through its subsidiaries, the Company is a
leading operator in the Autoparts, Chemical, Food and Real Estate
Sectors.

CONTACTS:  Marisol V zquez Mellado
           Jorge F. Padilla
           Tel: (5255) 5261-8044
           jorge.padilla@desc.com.mx

           Maria Barona
           Melanie Carpenter
           Tel: 212-40 6-3690
           desc@i-advize.com


MEXICANA DE AVIACION: To Maintain Number of Employees This Year
---------------------------------------------------------------
Mexicana de Aviacion, Mexico's second largest airline, indicated
Friday that there will be no new job opportunities this year,
relates EFE.

"The priority is to achieve financial equilibrium in 2004 and
improve on 2003. Thus, the company will maintain its current
agreement with its staff," the airline's public relations chief,
Adolfo Crespo, said, adding that the Company expected to record
growth in 2004.

"This year there will be a consolidation of the plans we've made,
and we have seen a favorable trend in the last six months of
2003, which we believe will continue this year," Crespo said.

Crespo refuted speculations that the Company had been hurt by the
added security measures adopted by U.S. authorities.

"In fact, in December we noted no drop in reservations" and that
this month reservations so far were "like any other January," he
said.



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

MINERA VOLCAN: Stock Exchange Suspends Trading
----------------------------------------------
The Lima bourse suspended Friday trading in Peru's second largest
zinc producer Volcan, pending clarification of a report that the
debt-ridden miner's creditors had signed a put option to sell a
42% stake to Glencore International AG.

Volcan immediately issued a statement saying it had no new
information to add to its August-29 letter to the bourse that
said Glencore was negotiating with shareholders to buy a packet
of Volcan Class A shares but that the zinc miner was not
participating in the talks.

Jose Miguel Morales, president of Peru's National Mining, Oil and
Energy Society (SNMPE), told Reuters Thursday that Glencore had
signed the two-year option on January 8, which comes partially
effective next month.

Morales' law firm acts for Volcan but was apparently not involved
in the negotiations with creditors.

Glencore has been negotiating with Volcan's creditors - who are
owed about US$110 million - after signing an agreement with the
miner in September to help it out of its financial troubles.

Earlier last week, the zinc miner reported that it had received a
US$40 million credit from Glencore, part of the agreement
announced in September. 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.

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



=====================
P U E R T O   R I C O
=====================

CENTENNIAL COMMUNICATIONS: Announces Pricing on $325M Notes Offer
-----------------------------------------------------------------
Centennial Communications Corp. (NASDAQ: CYCL) ("Centennial" or
the "Company") announced Friday that it has priced $325 million
of 8.125% senior unsecured notes due 2014 to be issued in a
private placement pursuant to Rule 144A and Regulation S of the
Securities Act of 1933.

As previously announced, Centennial has received a commitment for
a new $750 million senior secured credit facility, consisting of
a $600 million, seven-year term loan maturing in 2011 and a $150
million, six-year revolving credit facility maturing in 2010.
Term loan borrowings under the new senior secured credit
facility, together with proceeds of the senior notes offering,
will be used to:

-- refinance and replace the Company's existing senior secured
credit facilities, which have an outstanding principal balance of
approximately $628 million as of November 30, 2003;

-- fund the repurchase of all of the Company's outstanding
unsecured subordinated notes due 2009 (the "Mezzanine Debt"),
which are currently accruing paid-in-kind interest at a rate of
13.0%. At November 30, 2003, the outstanding principal amount,
including unaccreted value of the equity portion of the Mezzanine
Debt, was approximately $194 million;

-- fund the redemption of up to $75 million aggregate principal
amount of the Company's outstanding $370 million 10.75% senior
subordinated notes due 2008; and

-- pay related fees and expenses.

Completion of each of the new senior secured credit facility and
the senior notes offering is conditioned on the closing of the
other transaction and is expected to occur on or about February
9, 2004. Each transaction is subject to customary closing
conditions. There can be no assurance that either the senior
notes offering, the new senior secured credit facility or the
redemption of a portion of our senior subordinated notes will be
consummated as planned, or at all.

The senior notes to be offered and sold will not be registered
under the Securities Act of 1933 or any state securities laws and
may not be offered or sold in the United States absent
registration under, or an applicable exemption from, the
registration requirements of the Securities Act of 1933 and
applicable state securities laws.

About Centennial

Centennial is one of the largest independent wireless
telecommunications service providers in the United States and the
Caribbean with approximately 17.3 million Net Pops and
approximately 997,200 wireless subscribers. Centennial's U.S.
operations have approximately 6.1 million Net Pops in small
cities and rural areas. Centennial's Caribbean integrated
communications operation owns and operates wireless licenses for
approximately 11.2 million Net Pops in Puerto Rico, the Dominican
Republic and the U.S. Virgin Islands, and provides voice, data,
video and Internet services on broadband networks in the region.
Welsh, Carson Anderson & Stowe and an affiliate of the Blackstone
Group are controlling shareholders of Centennial.




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

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and Oona
G. Oyangoren, Editors.

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

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

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

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


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