TCRLA_Public/040202.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, February 2, 2004, Vol. 5, Issue 22

                          Headlines

A R G E N T I N A

ACINDAR: Analysts Optimistic On Company's Future Prospects
AISLANTES MEDITERRANEO: Enters Bankruptcy on Court Orders
AKROM: Receiver Prepares Individual Reports
ATAHUALPA: Court Orders Bankruptcy
CASULECO: Receiver To File Individual Reports Today

CONSTRUCTORA MICAN: Court Assigns Receiver for Reorganization
DECON: Individual Reports Due at Court Today
DG PLAST: Credit Verifications in Bankruptcy End Today
EMEPLAST: Credit Claims Filing Deadline Today
ESTABLICIMIENTO ZINKALORD: Receiver Prepares Individual Reports

HILADO: Individual Reports Due at Court Today
JORGE LANATA: Claims Check in Bankruptcy Ends Today
JULY SHOES: Credit Verifications in Bankruptcy Ends Today
NAGI-TEXT: Receiver Prepares Individual Reports
RUBOR: Court Orders Bankruptcy

TEDESCO: Receiver Prepares Individual Reports in Bankruptcy


B R A Z I L

FANAPE: Files For Bankruptcy Protection
GERDAU: Exports Up On Growing Int'l Market Demand
PARMALAT BRASIL: Brazilian Officials Discuss Solution to Crisis
SANTANDER BANESPA: S&P Affirms Ratings
SEB: BNDES Likely to Up Cemig Stake as Part of Debt Settlement

TELEMAR: Returns To Profitablility In 2003
TELEMAR: Authorizes Credit Of Interest On Capital Payment


C H I L E

EDELNOR: Signs Preliminary Accord with Electroandina, NorAndino


C O L O M B I A

AVIANCA: Judge To Decide on Extension Feb. 10


D O M I N I C A N   R E P U B L I C

BANCO POPULAR: Fitch Affirms, Withdraws Ratings


J A M A I C A

JPSCO: Faces Application Deadline For Tariff Increase


M E X I C O

AEROMEXICO: Signs Agreement with TeleTech
CONE MILLS: Announces Successful Bidder


U R U G U A Y

PARMALAT URUGUAY: Yet to Plan Future Strategy

     -  -  -  -  -  -  -  -

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

ACINDAR: Analysts Optimistic On Company's Future Prospects
----------------------------------------------------------
Analysts expect Argentine long steel products maker Acindar to
restore its healthy financial status after it completes a debt-
restructuring program that will enable it to concentrate on its
core business, reports Business News Americas.

Cristian Rios, an analyst with Buenos Aires-based Allaria Ledesma
brokerage, said that since Acindar issued US$80 million in
negotiable bonds earlier this month, the Company's shares have
fallen heavily and are now among the cheapest steel or industrial
stocks in Latin America.

However, when the bonds' negotiation period ends on February 4,
Acindar's stocks should rapidly gain in value, said the analyst.

Silvina Aldeco-Martinez, a Buenos Aires-based analyst with credit
ratings agency Standard & Poor's, also expressed optimism on
Acindar.

According the analyst, the bond issue will be an important
element in the Company's debt refinancing plan that, once
complete, will give it more space to concentrate on its core
business.

In the meantime, Acindar spokesperson Gustavo Pittaluga revealed
that the Company plans to invest US$20 million mainly in
maintenance of its operations this year, says Business News
Americas.

The amount is roughly the same as in 2003 and will be pumped into
the melting shop, rolled products division, drawn products
division and tubes "so as to maintain the technological and
productivity levels that we have obtained," Pittaluga said.

Buenos Aires-based Acindar, Argentina's largest long steelmaker
with installed capacity of nearly 1.35Mt/y, is owned by the
Acevedo family (20%), Brazilian long steelmaker Belgo-Mineira
(20%), the World Bank's IFC (7%) and 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

          Jose I. Giraudo, Investor Relations Manager
          Tel: (54 11) 4719 8674
          Andrea Dala, Investor Relations Officer
          Tel: (54 11) 4719 8672


AISLANTES MEDITERRANEO: Enters Bankruptcy on Court Orders
---------------------------------------------------------
Aislantes Mediterraneo S.R.L., which was undergoing
reorganization, was declared "Quiebra" by Court No. 12 of the
Civil and Commercial Tribunal of San Lorenzo. A report by
Argentine news source Infobae indicates that the Company's
receiver is Mr. Daniel Oscar Catiglioni.

The Company's assets will be liquidated at the end of the
bankruptcy process to reimburse its creditors. The source,
however, did not indicate whether the court has set the deadlines
for the filing of the receiver's reports.

CONTACT:  Daniel Oscar Catiglioni
          Dr. Gio 679
          San Lorenzo, Santa Fe


AKROM: Receiver Prepares Individual Reports
-------------------------------------------
The credit verification process for the bankruptcy of Buenos
Aires-based Akrom S.A. ends today. The Company's receiver, who
verifies the claims, will then prepare the individual reports
based on the results of the verification process, said the
Troubled Company Reporter - Latin America in an earlier report.

The city's Court No. 21, which handles the Company's case,
instructed the receiver, Ms. Fany Juana Gutember, to submit the
individual reports by March 16 next year. The general report,
prepared after the individual reports are processed at court, is
due on April 30, 2004.

The Company's assets will be liquidated at the end of the process
to pay off creditors. Payments will be based on the results of
the credit verification process.

CONTACT:  Fany Juana Gutember
          Ave Callao 449
          Buenos Aires


ATAHUALPA: Court Orders Bankruptcy
----------------------------------
Court No. 1 of the Civil and Commercial Tribunal of Salta ordered
the bankruptcy of Argentine company Atahualpa S.R.L., reports
local news portal Infobae. The Company was undergoing the
bankruptcy process. The source did not indicate whether the court
has assigned a receiver to the case.


CASULECO: Receiver To File Individual Reports Today
---------------------------------------------------
Ms. Eva Gords, receiver for the bankruptcy of local company
Casuleco S.R.L., must file the individual reports for the
Company's bankruptcy today. These reports contain the results of
the credit verification process done to determine the nature and
amount of the Company's debts.

The receiver will prepare the general report after the individual
reports are processed at Buenos Aires Court No. 15, which handles
the Company's case. This report must be filed at the court on
March 17 next year, according to the Troubled Company Reporter -
Latin America in an earlier report.

The Company's assets will be liquidated at the end of the process
to reimburse its creditors.

CONTACT:  Eva M Gords
          Paraguay 1225
          Buenos Aires


CONSTRUCTORA MICAN: Court Assigns Receiver for Reorganization
-------------------------------------------------------------
Court No. 10 of the Civil and Commercial Tribunal of Resistencia
in Chaco, Argentina assigned Mr. Jorge Zenon as receiver for the
reorganization of local company Constructora Mican S.R.L.,
reports local news portal Infobae.

Creditors must present their claims to the receiver for
verification before March 1. Verifications are done to determine
the nature and amount of the Company's debts.

The individual reports on the results of the verification
process, must be submitted to the court on April 15. The receiver
will also prepare the general report after the individual reports
are processed at court. This is due for filing on May 28. The
informative assembly will be held on November 19.

CONTACT:  Constructora Mican S.R.L.
          Ave Paraguay 582
          Resistencia, Chaco

          Jorge Zenon
          Dr. Reggiardo 561
          Resistencia, Chaco


DECON: Individual Reports Due at Court Today
--------------------------------------------
The individual reports for the bankruptcy of Argentine company
Decon S.A. is due at court today. Ms. Maria del Carmen Sabugal,
receiver for the process, prepared these reports after the credit
verification process was completed.

An earlier report from the Troubled Company Reporter - Latin
America revealed the Company was declared "Quiebra" by Buenos
Aires Court No. 17. The Court also ordered the receiver to
prepare the general report, to be submitted March 15, 2004, after
the individual reports are processed at court.

The Company's assets are likely to be liquidated at the close of
this process in order to pay its creditors.

CONTACT:  Maria del Carmen Sabugal
          Moreno 850
          Buenos Aires


DG PLAST: Credit Verifications in Bankruptcy End Today
------------------------------------------------------
The credit verification process for the bankruptcy D.G. Plast
S.R.L. ends today. The Company's receiver, Ms. Marta Acuna, who
verified claims, will prepare the individual reports on the
results of the authentication process.

The Company, which is based in Buenos Aires, entered bankruptcy
on orders from the city's Court No. 22, the Troubled Company
Reporter - Latin America revealed in an earlier report.

CONTACT:  D.G. Plast S.R.L.
          Ave de la Plata 411
          Buenos Aires

          Marta Acuna
          Combate de los Pozos 129
          Buenos Aires


EMEPLAST: Credit Claims Filing Deadline Today
---------------------------------------------
Creditors of bankrupt Argentine company Emeplast S.R.L. must have
their claims examined and authenticated by the receiver as the
deadline for claims filing expires today. The Company's receiver,
Mr. Mario Leizerow, will prepare the individual reports, as
required by the court.

The Troubled Company Reporter - Latin America earlier reported
that Buenos Aires Court No. 4 handles the Company's case with
assistance from Clerk No. 7.

CONTACT:  Mario Leizerow
          Ave Corrientes 1250
          Buenos Aires


ESTABLICIMIENTO ZINKALORD: Receiver Prepares Individual Reports
---------------------------------------------------------------
Buenos Aires Court No. 25 ordered the receiver for the bankruptcy
of Establecimiento Zinkalord S.R.L. to close the credit
verification process today. The receiver, Maria Sonmariva, will
prepare the individual reports, as ordered by the court, which is
assisted by Clerk No. 50, according to the Troubled Company
Reporter - Latin America in an earlier report.

The receiver is also required to prepare a general report after
the individual reports are processed at court. Local sources,
however, did not mention the deadlines for the filing of the
receiver's reports. The Company's assets will be liquidated at
the end of the process to repay creditors.

CONTACT:  Establicimiento Zinkalord S.R.L.
          Belgrano 2910
          Buenos Aires

          Maria Sonmariva
          Florida 930
          Buenos Aires


HILADO: Individual Reports Due at Court Today
---------------------------------------------
The individual reports for the bankruptcy of Argentine Company
Hilado S.A. are due today. These reports contain the results of
the credit verification process.

The Company's receiver will prepare a general report after the
individual reports are processed at court. This report is due at
the court on March 3. The informative assembly will be held on
March 16, said the Troubled Company Reporter - Latin America in
an earlier report.

The Company started its reorganization process after Court No. 4
of the Civil and Commercial Tribunal of La Rioja approved its
motion for "Concurso Preventivo".


JORGE LANATA: Claims Check in Bankruptcy Ends Today
---------------------------------------------------
Creditors of Argentine company Jorge Lanata Producciones y
Asociados S.R.L. must present their claims to the Company's
receiver for authentication as the deadline for verifications
expires today. The Troubled Company Reporter - Latin America
revealed earlier that the Company's receiver is local accountant
Norma Alicia Balmes.

Buenos Aires Court No. 12 handles the Company's case with
assistance from the city's Clerk No. 24.  The court instructed
Ms. Balmes to have the individual reports ready by March 15 next
year. These are prepared after the verification process is
completed. The receiver will consolidate the data in these
reports into a general report, which is due for filing on April
26, 2004. The Company's assets would then be liquidated to
reimburse creditors.

CONTACT:  Norma Alicia Balmes
          Roque Saenz Pena 1185
          Buenos Aires


JULY SHOES: Credit Verifications in Bankruptcy Ends Today
---------------------------------------------------------
Buenos Aires accountant Domingo Vicente Marinkovich, receiver for
local company July Shoes S.R.L., will close the credit
verification process for the Company's bankruptcy today. Claims
are verified to determine the nature and amount of the Company's
debts and to set a standard for the distribution of payments to
creditors after the Company's assets are liquidated.

An earlier report by the Troubled Company Reporter - Latin
America indicated that he Company's case is being handled by city
Court No. 25, with assistance from Clerk No. 49. The court
requires the receiver to hand in the individual reports on March
15 next year. These reports contain the results of the credit
verification process.

The receiver is also obliged to prepare the general report, a
consolidation of the information from the individual reports
after these are processed at court. This report comes due on
April 29 next year.

CONTACT:  Domingo Vicente Marinkovich
          Oro 2381
          Buenos Aires


NAGI-TEXT: Receiver Prepares Individual Reports
-----------------------------------------------
Argentine accountant Fany Juana Gutember, receiver for Buenos
Aires company Nagi-tex S.R.L., will prepare the individual
reports for the Company's bankruptcy as the deadline for credit
verifications expires today. Creditors are required to have their
claims authenticated by the receiver in order to qualify for
payments to be made after the Company's assets are liquidated.

The city's Court No. 25 and Clerk No. 50, handle the Company's
case, according to an earlier report by the Troubled Company
Reporter - Latin America.

The receiver will prepare the individual reports, which is due
for filing on March 15 next year, upon completion of the
verification process. The receiver will also prepare the general
report, which must be filed on April 29, 2004.

CONTACT:  Fany Juana Gutember
          Ave Callao 449
          Buenos Aires


RUBOR: Court Orders Bankruptcy
------------------------------
Rubor S.R.L. enters bankruptcy on orders from the Civil and
Commercial Tribunal of Rosario in Santa Fe. Argentine news portal
Infobae reports that the Company is declared "Quiebra Decretada".
The source, however, did not indicate whether Court No. 12, which
handles the Company's case, has assigned a receiver to oversee
the case.

CONTACT:  Rubor S.R.L.
          Estado de Israel 2469
          Rosario, Santa Fe


TEDESCO: Receiver Prepares Individual Reports in Bankruptcy
-----------------------------------------------------------
Mr. Juan Enrique Reinhardt, receiver for Tedesco S.A., will
prepare the individual reports as the deadline for credit
verifications expires today. These reports, which are due at the
court on March 15, contain the results of authentication process.

The general report, prepared after the individual reports are
processed at court, will be filed on April 29, the Troubled
Company Reporter - Latin America said in an earlier report.

The results of the verification process will determine the
distribution of payments to be made at the end of the bankruptcy
process, after the Company's assets are liquidated.

CONTACT:  Juan Enrique Reinhardt
          Viamonte 1348
          Buenos Aires



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

FANAPE: Files For Bankruptcy Protection
---------------------------------------
Fanape (Fabrica Nacional de Perfumes), a Brazilian producer of
perfumes and cosmetics under Agua de Cheiro brand, filed for
bankruptcy protection in December, reports Valor Economico. The
filing showed that the Company has assets totaling BRL7.5
million, and total debts of BRL8.1 million, which will be paid
off within two years. The Company plans to maintain the 180
employees of the Lagoa Santa-based plant (Minas Gerais) and will
keep operations to supply the orders of Agua de Cheiro franchise
chain and of third parties.


GERDAU: Exports Up On Growing Int'l Market Demand
-------------------------------------------------
Exports from Brazil totaled 3.2 million tons of steel products,
representing nearly half of the volume sold by Gerdau Acominas,
the company responsible for the Group's steel operations in the
country

"The pick-up in the international steel market reflected
positively on the Gerdau Group's performance in 2003. We had
record exports in Brazil and increased sales in Argentina,
Canada, Chile, the U.S. and Uruguay, resulting in a consolidated
sales revenue of R$ 15.8 billion," said the Company's senior
vice-president, Frederico Gerdau Johannpeter. The sales revenue
presented a growth of 42% over the R$ 11.1 billion from the
previous year. Of this total, operations in Brazil accounted for
57%, the units in North America for 39% and the companies in
Chile, Uruguay and Argentina for 4%.

Export revenues up 125% over 2002, reaching US$ 787 million

The Gerdau Group closed the year with a total of 3.2 million tons
shipped from Brazil to other countries, a 70% increase over 2002.
In an environment of a rebound in demand and prices, export
performance generated US$ 787 million of revenue, an increase of
125% over 2002. During the year, the average selling price of
Gerdau steel in the international market increased 31%. Sales to
other countries counterbalanced the 13% decline in the domestic
market, where 3.4 million tons were sold.

Sales of the North American units increased 69% in 2003, reaching
5.1 million tons. This was primarily the result of the merger
between Co-Steel and the Gerdau Group's operations in the region,
completed in October 2002. The companies in Argentina, Uruguay
and Chile together sold 416,000 tons, an 18% increase in
comparison to 2002. In total, the Gerdau Group sold 12.1 million
tons, representing a 33% increase over 2002.

As a result of this scenario, the net profit - not considering
adjustments in the value of R$ 334 million resulting from the
integration of Gerdau S.A. and Aco Minas Gerais S.A. (Acominas) -
increased 18%, reaching R$ 923 million. The integration was
completed during the month of November, and the new company was
renamed Gerdau Acominas, now responsible for the Group's steel
operations in Brazil. As stated in the Gerdau Acominas cash flow,
R$ 140 million was paid during the fiscal year in income tax and
social contribution.

PRODUCTION

Gerdau mills produce 12.3 million tons of steel, up 31%

The consolidated production of slabs, blooms and billets reached
12.3 million tons in 2003, up 31% over the previous year. In
Brazil, a positive variation of 16% in production was recorded,
reaching 7 million tons. The production of the North American
units increased 60%, from 3.1 million tons to 5 million tons. In
Chile and Uruguay, steel production reached 347,000 tons, up 11%.

For rolled products, total production reached 9 million, an
increase of 31%. It is during the rolling stage that steel is
transformed into higher added value products, such as rebar,
bars, profiles and wire rod. Mills in Brazil produced 3.9 million
tons (+ 6%), in North America 4.8 million tons (+ 63%) and the
units in Argentina, Chile and Uruguay, 379,000 tons (+ 11%) of
rolled products.

INVESTMENTS

US$ 295 million for technological upgrade and for the
expansion of Gerdau units

During the 2003 fiscal year, investments for technological
upgrade and for the expansion of Gerdau units totaled US$ 295
million. Of this value, US$ 229 million (78% of the total) was
destined for industrial plants located in Brazil, US$ 59 million
(20% of the total) for the North American units and US$ 6.8
million (2% of the total) for the mills located in other South
American countries.

STOCK MARKETS

Payment of interest on capital stock from fourth quarter
scheduled for February 17

The Gerdau Group has two listed companies in Brazil: Metal£rgica
Gerdau S.A. and Gerdau S.A. Both companies will pay interest on
capital stock for the fourth quarter of 2003 on February 17th.
Gerdau S.A. will pay R$ 151 million and Metal£rgica Gerdau S.A.,
R$ 80 million. In 2003, a total of R$ 351 million was paid to
Gerdau S.A. shareholders in the form of interest on capital
stock, and R$ 172 million to Metal£rgica Gerdau S.A.
shareholders.

The value of the Metal£rgica Gerdau S.A. shares traded on the Sao
Paulo Stock Exchange (Bovespa) was R$ 574 million, up 89% over
2002. During this period, the daily average increased from R$ 1.2
million to R$ 2.2 million and 21,415 transactions (+ 119%) were
completed. The company obtained a net profit of R$ 575 million -
equivalent to R$ 13.88 per share.

Gerdau S.A. steel sales increase 82% to R$ 2.5 billion

Gerdau S.A. is listed on the Sao Paulo (Bovespa), New York (NYSE)
and Madrid (Latibex) Stock Exchanges. On the Bovespa, the value
of the Gerdau S.A. shares traded was R$ 2.5 billion (+ 82%), with
an average increase in daily trading from R$ 5.5 million to R$
9.8 million. The total of daily trades was 103,599, up 89% over
2002. The value of the ADRs traded on the NYSE totaled US$ 315
million, equivalent to a daily average of US$ 1.2 million. On the
Latibex, the company's preferred shares were a daily presence in
the 2003 trading sessions, a period during which the value of the
shares traded was some 3.1 million Euros.

Gerdau S.A.'s sales revenue accumulated R$ 6.1 billion from
January to November, when its operating assets were transferred
to the controlled company Gerdau Acominas. Gerdau S.A. obtained a
net profit of R$ 1.1 billion, equivalent to R$ 7.68 per share.

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


PARMALAT BRASIL: Brazilian Officials Discuss Solution to Crisis
---------------------------------------------------------------
Brazilian officials met Thursday to analyze what measures to take
to resolve the crisis engulfing Parmalat Brasil, which filed for
bankruptcy protection Wednesday.

The unit, which employs a sixth of Parmalat's global workforce,
or about 6,000 people, asked a Sao Paulo court to accept a plan
for protection from its creditors while it continues operating
and seeks to repay its debts.

If accepted, Parmalat Brasil S.A Industria de Alimentos would
have two years to pay its debts. But it would have to pay on
delivery for all future milk supplies.

"The question is whether milk producers will continue to supply a
company that is in default," Agriculture Minister Roberto
Rodrigues said.

Rodrigo Alvin, the president of the National Commission of Diary
Farmers and Producers, said the situation was "complicated" for
the 20,000 Brazilian producers who supply the Company.

"Who wants to sell to a company in default? The (bankruptcy plan)
cannot be a solution for the company's survival," he said.

The second-largest milk buyer after Nestle, Parmalat had debts of
BRL14 million (US$4.7 million) to Brazilian producers. Those
farmers are now trying to sell to Nestle, which buys 4.5 million
liters (1.2 million gallons) a day.

Parmalat Brasil's debts to banks amounted to BRL1.8 billion
(US$600 million).


SANTANDER BANESPA: S&P Affirms Ratings
--------------------------------------
Standard & Poor's Ratings Services said Thursday that it affirmed
its 'BB/B' local currency and 'B+/B' foreign currency credit
ratings on Banco Santander Brasil S.A. (Santander Brasil), Banco
Santander Meridional S.A. (Santander Meridional) and Banco do
Estado de Sao Paulo S.A. (Banespa). The stable outlook on the
local currency rating and the positive outlook on the foreign
currency rating were also maintained.

The ratings on Santander Banespa entities benefit from the strong
domestic position of their ultimate parent, Banco Santander
Central Hispano S.A. (BSCH; A+/Stable/A-1), and its commitment to
the Brazilian operation, as well as the group's strong position
in the Brazilian market.

Other factors include the group's good financial profile (mainly
good profitability and asset quality). Like other banks in
Brazil, the ratings also consider the uncertainties of operating
in the country and exposure to the economic risk of the financial
system.

Santander Brasil, Santander Meridional, and Banespa are part of
the group's banking operations in Brazil and form the Santander
Banespa Group.

"Even though high economic volatility in Latin America increases
BSCH's risk, Santander Banespa is a revenue generator as well as
part of the group's strategy of building a banking franchise in
Latin America," said Standard & Poor's credit analyst Tamara
Berenholc. Santander Banespa maintains its position as the
fourth-largest private Brazilian financial group in terms of
total assets. While its overall market share in terms of loans
and deposits is less than that of its main competitors, the group
maintains its high market share in the Southeast region of
Brazil, mainly the state of Sao Paulo. Even though Santander
Banespa has increased its market share in some products, there is
room for further growth.

The stable outlook on the local currency rating reflects the
expectation that the group will maintain its market position
while presenting good profitability and asset quality. The
positive outlook on its foreign currency rating mirrors the
outlook attributed to the Federative Republic of Brazil. At its
current level, Santander Banespa entities' foreign currency
credit rating should move in tandem with the foreign currency
credit rating of the sovereign. As for the local currency credit
rating, it would automatically follow negative changes in the
sovereign credit rating, if the latter is downgraded or its
outlook is revised to negative. But it would be assessed on a
case-by-case basis if the sovereign local credit rating has
positive changes or upgrades.

ANALYSTS:  Tamara Berenholc, Sao Paulo (55) 11-5501-8950
           Daniel Araujo, Sao Paulo (55) 11-5501-8939


SEB: BNDES Likely to Up Cemig Stake as Part of Debt Settlement
--------------------------------------------------------------
SEB, a consortium that includes U.S. power group AES Corp.,
Mirant (formerly Southern Electric) and Brazilian investment bank
Opportunity, continues to negotiate with the national development
bank BNDES to settle a US$700-million debt with the latter.

SEB used BNDES credit to buy a 33% voting right stake in Minas
Gerais state power company Cemig (NYSE: CIG) in 1997. However,
SEB stopped repaying the debt in 2003, local newspaper O Estado
de Sao Paulo said.

BNDES president Carlos Lessa indicated that the debt settlement
may involve increasing BNDES' 2.21% stake in the company.


TELEMAR: Returns To Black In 2003
---------------------------------
Highlights Of The Quarter And Year Of 2003

The fixed plant in service comprised 15.1 million lines at the
end of 2003 (with net additions of 34,000 lines in the quarter
and 72,000 in the year). ADSL accesses totaled 217,000
subscribers (+48.5% from 3Q03 and +427.5% from 2002).

The mobile plant reached 3.9 million subscribers, increasing by
approximately 1.0 million in 4Q03 and 2.5 million subscribers in
2003.

Gross revenues amounted to R$ 5,252 million for the quarter
(+1.9% from 3Q03), and R$ 19,427 million for the year (+20.7%).
This growth was driven mainly by wireless (+180.2%), long
distance (+43.4%), and data transmission services (+30.7%).

Consolidated net revenues amounted to R$ 3,671 million for the
quarter (-2.6% from 3Q03), reaching R$ 14,003 million for the
year (+17.9%).

Wireline ARPU stood at R$ 73 for the quarter (-5.9% from 3Q03)
and R$ 72 for the year (+12.3%). Wireless ARPU was R$ 27 for 4Q03
(-6.6% from 3Q03) and R$ 30 for the year (-9.1%).

Provisions for doubtful accounts amounted to R$ 144 million for
the quarter (2.7% of gross revenues) and R$ 598 million for the
year, equal to 3.1% of gross revenues (2002 - 3.8%).

EBITDA for 4Q03 was R$ 1,603 million, with a 43.7% margin. For
2003, EBITDA reached R$ 6,221 million (+16.2% from 2002), with a
44.4% margin (45.1% in 2002).

Net financial expenses totaled R$ 530 million for the quarter (-
12.5% from 3Q03) and R$ 2,106 million for the year (+4.1%).

Net income for the quarter amounted to R$ 514 million (net losses
of R$ 24 million for 3Q03). Net income for the year totaled R$
213 million (net losses of R$ 416 million for 2002), with
earnings per thousand shares of R$ 0.56 (US$ 0.18 per ADR).

Capital expenditures (Capex) amounted to R$ 912 million in the
quarter and R$ 1,682 million in the year, of which R$ 1,085
million were alocated to wireline and R$ 554 million to wireless
operations. Capex levels in 2003 were 17.2% below the 2002
figures, representing 12.0% of the consolidated net revenues
(2002 - 17.1%).

Cash flow after capex reached R$ 1,538 million for the quarter.
During 2003, it increased by 74.9% to R$ 4,025 million, equal to
a 23.8% yield (based on year-end stock prices).

Consolidated net debt for 4Q03 amounted to R$ 7,835 million (-
9.5% from 3Q03). For the year, net debt decreased by R$ 1,286
million (-14.1%).

TNL management has proposed the distribution of dividends in the
amount of R$ 342 million, in addition to interest on capital
(IOC) already declared, totaling R$ 800 million for the year of
2003. TMAR management has proposed the distribution of dividends
in the amount of R$ 130 million, in addition to IOC already
declared, totaling R$ 1 billion for the year of 2003.

2. Operating Performance Review

2.1 Wireline

The wireline plant installed comprised 17.4 million lines at the
end of 2003, while the plant in service totaled 15.1 million
units, including 662,000 pay phones. The utilization rate of the
installed plant was 87.1%. The digitalization rate of the plant
reached 98.9% in 4Q03. During 2003, some 2.9 million lines were
activated, with net additions of 72,000 lines. In the 4Q03, the
plant in service increased by 34,000 lines.

During 2003, the average plant in service comprised 15.0 million
lines, up 0.3% from the previous year's average. ADSL activations
continued to grow during the quarter and reached 217,000
subscribers at the end of 2003. Taking into account our 36,000
DVI (ISDN) subscribers, Telemar had 253,000 subscribers to its
broadband Internet services at the end of 2003.

2.2 Wireless Services

Oi's customer base increased significantly to 3,893,000
subscribers, of which 1,044,000 were acquired during 4Q03. The
company has an estimated market share of 18.4% in its region.
Approximately 90.2% of the new customers subscribed to prepaid
plans. At the end of 2003, the customer mix comprised 83% and 17%
customers under prepaid and postpaid plans, respectively. During
2003, the average customer base included 2,280,000 subscribers up
from the 573,000 average for customers in 2002, when the company
started operations (July/02).

Churn rates at Oi during 4Q03 stood at 2.7% (with 81,000
disconnections). For the year 2003 as a whole, the churn rate was
10.8%.

3. Consolidated Results

3.1 Revenues

During the quarter, consolidated gross revenues grew to R$ 5,252
million (up 1.9% from 3Q03), mainly driven by the expansion in
wireless services, which increased by 31.7% from 3Q03.

In the year, the main contributors to the 20.7% increase, over
2002, in gross revenues were wireless, long distance and data
transmission services.

Consolidated net revenues for the quarter decreased by 2.6% when
compared to 3Q03. The difference in performance of gross and net
revenues for the quarter was due to the different criteria
adopted by the Company to account for "unbilled" services (i.e.
services already measured but yet to be billed), basically fixed-
to-mobile, long distance and advanced voice services, which were
previously recorded in gross revenues net of taxes. As of the
4Q03, these amounts are recorded on a gross-of-taxes basis, with
no impact on net revenues.

Excluding that adjustment, the main downward pressure in the
quarter came from network usage services, which decreased by R$
113 million. This decline is attributable to the change made at
the end of 3Q03, from a tariff adjustment based on IPG-DI index
(14.3%) that had been in force since the end of 2Q03, back to the
IPCA index (3.1%), in addition to ruling challenges made by other
telecom companies.

Consolidated net revenues for 2003 totaled R$ 14,003 million, up
17.9% from the previous year.

3.1.1 Wireline Services

Gross revenues from wireline services declined by 0.4% during the
quarter and grew by 15.5% in 2003, representing 92.5% of
consolidated gross revenues for the year (2002 - 96.7%).

- Local (monthly subscription, pulse, installation fee and fixed-
to-mobile calls/VC1): gross revenues from local services amounted
to R$ 2,928 million, in line with 3Q03 figures. For the year,
local revenues totaled R$ 11,068 million (+12.3%), or 57.0% of
total gross revenues for 2003 (2002 - 61.2%). The reduction in
participation related to total revenues was basically due to a
relative decrease in VC1 calls for 2003.

- Revenues from Monthly subscriptions came to R$ 1,418 million
for the quarter (-1.2% from 3Q03). This decrease was a result of
the final ruling on application of the IPCA index to the
concession agreements formula, effective as of the end of 3Q03.
For the year, these revenues increased to R$ 5,309 million
(+15.9%), essentially on account of tariff adjustments
implemented in Jun/02 and Jun/03, of approximately 14% and 17%,
respectively.

- Pulse-based traffic revenues reached R$ 700 million for the
quarter (-1.4% from 3Q03). The collective impact of holiday
vacations by corporate customers contributed to the weakness in
this figure during the quarter (-2.1%). For the year, the 15.6%
revenue growth to R$ 2,598 million was basically due to the
combined impact of tariff adjustments in Jun/02 and Jun/03, of
9.7% and 17.2%, respectively.

- Local fixed-to-mobile call (VC1) revenues increased by 3.6%
over the previous quarter. The increase for the year was 7.1%.
The tariff adjustment ratified in Feb/03 (24.8% on average) was
offset by a traffic reduction during the year (-16.3%).

- Long-distance (intra and inter-regional, international and
VC2/VC3): revenues reached R$ 842 million for the quarter (+8.6%
from 3Q03) and R$ 2,963 million for the year (+43.4%). The growth
in annual revenues arose from the expansion in traffic (+16.2%
from 2002), largely due to the increased market share, in
particular for the inter-regional segment (with tariffs on
average higher than those for the remaining segments), in
addition to the rate adjustment of long distance service tariff
basket in Jun/02 and Jun/03, of 8.8% and 12.6%, respectively. The
requirement to use selection codes for mobile outgoing calls from
mobile lines also helped boost revenues from long distance. These
revenues totaled R$ 60 million for the quarter and R$ 145 million
for the year (vs. R$ 17 million in 2002, at which time the only
companies required to use the selection codes were Oi and
TIM/GSM).

As a result of the robust growth in long distance, in particular
those segments where activities initiated as of Jul/02, its share
in total gross revenues increased to 15.3% in 2003 (2002 -12.8%).

- Data transmission services: revenues increased by 5.1% on 3Q03.
For the year, the 30.7% growth (+R$ 278 million) was mainly due
to new corporate agreements and the expansion of broadband
Internet access accounts (ADSL - "Velox"). The main contributors
were IP services (+R$ 115 million), Velox (+R$ 95 million), and
Dedicated Line Service - SLD (+R$ 70 million). These services
accounted for 6.1% of gross revenues in 2003 (vs. 5.6% in 2002).

- Remuneration for network usage: revenues decreased by 31.2% (-
R$ 113 million) over the previous quarter, due to the change in
the tariff reference from the IGP-DI index (14.3%) in place
during 3Q03 to the IPCA index (3.1%), at the end of 3Q03.

Revenues for the year declined by 16.0%, on account of the
increased Telemar share in the long distance market and the
installation of interconnection presence points by other
companies in our region, thereby reducing the usage of our
network. As a result, revenues from this service as a proportion
of total revenues decreased to 6.5% in 2003 (vs. 9.3% in 2002).

- Public telephone: revenues in the quarter were slightly lower
than for 3T03 (-0.9%), primarily due to a reduction in phone
cards sold during the period. The 20.9% increase for the year
arose mainly from the tariff adjustments in phone cards in Jun/02
and Jun/03 (8% and 17.2%, respectively). Revenues from this
service corresponded to 4.2% of gross revenues for 2003,
unaltered from 2002 levels.

- Additional services: gross revenues were up 3.5% from 3Q03 and
39.8% in 2003. These revenues include, essentially, those from
vallue-added services, -- such as follow me, call waiting, call
blocking and caller ID -- which at the end of the year comprised
6.0 million units in service (+19.3% from 2002), besides
information services ( "102" - directory assistance). These
services accounted for 2.2% of gross revenues for 2003 (1.9% in
2002).

3.1.2 Wireless Services

Oi posted gross revenues of R$ 625 million for the quarter
(+26.0% from 3Q03), mainly as a result of increased handset sales
during the holiday season. For the year, gross revenues amounted
to R$ 1,826 million (+232.1%), due to the increase in mobile
services driven by a strong expansion in the average customer
base (297.9%).

After elimination of intercompany transactions, wireless
consolidated gross revenues for the quarter were 31.7% above 3Q03
figures. For the year as a whole, these revenues increased by
180.2%, accounting for 7.0% of TNE's gross revenues in 2003 (2002
- 3.0%). When compared with the previous quarter, the main
contributions arose from the increased sale of handsets, reaching
R$ 72 million (+44.4%), and the growth in revenues from services
provided (ex-remuneration for network usage), amounting to R$ 46
million (+28.7%), in line with the expansion of the average
customer base (+22.1% from 3Q03).

Revenues from remuneration for the use of mobile network, after
elimination of R$ 104 million billed to TMAR decreased by 5.9%
from 3Q03. In 2003, such revenues were up 520.3% from 2002
figures (after elimitation of R$ 318 million billed to TMAR)

Net revenues from the sale of handsets amounted to R$ 189 million
in the 4Q03 (+52.5% from 3Q03). During the quarter, approximately
1,182,000 handsets were sold, up 52.0% from 3Q03 sales.

The average revenue per user (ARPU) for the 4Q03 stood at R$ 27
(-6.6% from 3Q03) and R$ 30 for the year (-9.1% from 2002). The
decrease in ARPU during the quarter was primarily due to the
strong growth in the prepaid base (90.2% of all net additions),
in particular due to handset sales at the end of 2003 (the
holiday season) - for which services started to be billed,
essentially, as of January 2004 - as well as the effect of
migration of wireless companies from the SMC to the SMP regime
(which applies a "bill and keep system" for mobile
interconnection).

3.2 Operating Costs and Expenses

Consolidated operating costs and expenses (ex-depreciation and
amortization) for 4Q03 decreased by 1.9% quarter-on-quarter,
impacted by the positive result in other expenses (revenues) for
the period. For the year, this item increased by 19.3%,
representing 55.6% of net revenues, in line with 2002 levels.

Interconnection costs for the quarter decreased by 2.5% when
compared with 3Q03, and increased by 6.8% for the year,
accounting for 18.1% of net revenues for 2003 (2002 - 20.0%). The
decreased proportion of such costs compared with the prior year
arises from the reduction in fixed-to-mobile traffic (-14.2% in
2003) and the increased market share of Oi in Region I, resulting
in a higher fixed-to-mobile traffic between TMAR and Oi.

Personnel expenses for 4Q03 increased by 9.4% quarter-over-
quarter. For the year, the increase amounted to 14.2%. Personnel
expenses grew in 2003 chiefly due to the increase in Contax staff
(+55.0%), following the expansion in the call center company
contracts.

SMP handset costs increased 37.3% compared to 3Q03, as a result
of the increased volume of sales during the period. For the year,
these costs grew by 78.6%, also due to the larger volume of
sales, totaling 3.0 million handsets (vs. 1.5 million in 2002).

Third-party services increased 7.8% over 3Q03, on account of
expenses with consultants and sales commissions, in addition to
mailing and collection expenses. The increase in 2003 came to
24.8%, primarily due to higher sales commissions, plant
maintenance, advisory and legal counsel services.

Marketing expenses increased by 7.1% over 3Q03, while annual
expenses increased by 16.0%. The increase was due to advertising
campaigns to foster the use of wireline products/services (Velox,
additional services and reinforcement of our selection code for
LD) and wireless products such as "Oi Fam¡lia"; "Oi
Universit rio", and brand consolidation. In the quarter, the
impact was due to the seasonal effect of Christmas sales
campaigns.

Provisions for Doubtful Accounts (PDA) decreased by 10.0% from
3Q03 levels, representing 2.7% of consolidated gross revenues.
For the year the provisions decreased by 3.0% from 2002 figures,
representing 3.1% of gross revenues (vs. 3.8% in 2002). The
reduction in customer delinquency levels is attributable mainly
to our strict control over receivables during 2003. PDA levels
during the quarter stood at 1.9% and 2.7% for wireless and
wireline services, respectively. During the year, PDA levels
corresponded to 3.5% and 3.0% of gross revenues from wireless and
wireline services, respectively.

Other operating expenses (revenues): revenues of R$ 91 million
were recorded for the quarter, compared with expenses of R$ 72
million for 3Q03. During 4Q03, there was a tax recovery of R$ 83
million in connection with PIS/COFINS and ICMS. In addition, a
monetary restatement expense with tax and civil claims, relating
to the period from Jan-Set/03, was reclassified as financial
expenses (R$ 27 million) in 4Q03. The positive result for the
year was 83.3% lower than previous year's figures, mainly due to
the impact of higher non-recurring revenues recorded in 2002
(Sistel pension fund).

3.3 EBITDA

Consolidated EBITDA amounted to R$ 1,603 million for the quarter
(-3.6% from 3Q03), with a 43.7% margin (3Q03 - 44.1%). For the
year, EBITDA totaled R$ 6,221 million (+16.2%), with a 44.4%
margin, in line with the previous year levels (45.1%).

TMAR posted consolidated EBITDA of R$ 1,566 million for the
quarter (-3.7% from 3Q03) and R$ 6,059 million for the year
(+6.9%), with a 44.3% margin. The TMAR consolidated results
include Oi acquisition effects, as of April 30, 2003.

Oi's EBITDA reached a negative R$ 2 million for the quarter (-
0.4% margin) and a positive R$ 107 million for the year (7.3%
margin).

Contax recorded EBITDA of R$ 17 million for the quarter, with a
margin of 13.1%, and R$ 64 million for the year, with a margin of
15.6% ( 8.8% in 2002).

3.4 Consolidated Financial Results

The Company posted net financial expenses of R$ 530 million for
4Q03, R$ 76 million (12.5%) lower than in 3Q03, chiefly due to
the decrease of 5 percentage points in average interest rate
(CDI) during the period.

Financial revenues totaled R$ 163 million, a R$ 38 million
reduction compared with the previous quarter, again due to a
decrease in interest rates during the quarter, in spite of an
increase in the average cash position during the period. In
addition to this effect, the company recorded R$16 million in
revenue for 3Q03 from the monetary restatement of tax credits
while it did not have a matching restatement in 4Q03.

Financial expenses amounted to R$ 693 million, a R$ 114 million
decrease on the previous quarter, mainly due to:

(i) Interest on loans and debentures of R$197 million, a
reduction of R$20 million over 3Q03 figures, due to lower average
interest rates in 4Q03.

(ii) Exchange result on loans and financings, negative of R$224
million in the quarter, due to:

a. monetary and exchange variations (+R$10 million), as a result
of expenses of R$21 million with monetary variations and of
exchange revenues of R$31 million, arising from appreciation of
the Real in the quarter (1.2%) and,

b. Currency swap result (negative R$234 million), due to interest
expenses (CDI) amounting to R$335 million (R$436 million in 3Q03)
and exchange revenues totaling R$101 million, lower than the
R$358 million revenue recorded in 3Q03, given the 1.2%
appreciation of the Real in the quarter (1.8% devaluation in
3Q03);

(iii) Interest on other liabilities, down R$ 34 million from
3Q03, when the company had recorded additional interest on tax
payments, under the Brazilian Tax Refinancing Program - REFIS
(R$66 million).

(iv) Taxes on financial revenues (IOF/PIS/COFINS), up R$ 74
million from 3Q03, when a provision for COFINS had been partly
recovered. During 4Q03, the Company also recorded a R$27 million
expense related to PIS/COFINS over interest on capital.

3.5 Non-Operating Results

The Company recorded a net non-operating gain of R$ 32 million,
compared to a R$ 2 million expense for 3Q03. The main changes
during the quarter were as follows:

- On August 26, 2003, TMAR signed an agreement with Am‚rica M¢vil
S.A. - transferring this right, via a private deed for the
assignment of rights and obligations and other undertakings, to
its subsidiary Oi, whereby the latter was granted an option to
take part in the acquisition of the capital stock of BCP S.A. BCP
was acquired by Am‚rica M¢vil S.A. on October 31, 2003. In the
negotiations which took place regarding the exercise of that
option, the decision of TMAR/Oi not to exercise it entitled the
company to receive compensation equal to US$ 35 million. The
amount of R$ 101 million was recorded at Oi as financial revenue.
This transaction was reviewed and approved by the Board of
Directors of TMAR.

- Provision for adjustment of optical cable inventories, mostly
at replacement values (R$ 39 million), based on market prices.

- Accrual for a reduction in losses on tax incentives (R$ 45
million), as the recovery of such assets was deemed unlikely.

- Equity accounting earnings arising from changes in the
shareholding in subsidiaries (R$ 27 million).

3.6 Net Results

Net results for the quarter amounted to R$ 514 million (loss of
R$ 24 million for 3Q03). In addition to the reduction in
financial expenses, net result was positively impacted by the tax
credits recorded in the quarter, related to deferred taxes on
fiscal losses, in particular at Oi, Pegasus and Contax (R$ 290
million), as well as to the appropriation of interest on capital
(R$ 214 million).

4. Debt

At year-end 2003, the consolidated debt amounted to R$ 12,160
million. The consolidated position of cash and equivalents at the
end of the year (R$ 4,325 million) exceeded short-term debt by
62.5%.

At the end of 2003, the consolidated net debt totaled R$ 7,835
million, decreasing by 9.5% during the quarter. For the year, the
decrease in net debt reached R$ 1,286 million (14.1%).

At year-end, loans denominated in local currency amounted to R$
3,111 million, of which R$ 1,793 million were due to BNDES, at
the average cost of TJLP + 3.85% p.a. and R$ 1,223 million
represents non-convertible debentures, bearing interest at CDI
rates + 0.7% p.a., maturing in 2006.

Foreign currency loans, in the amount of R$ 9,049 million -
including swap results of R$ 852 million - bear interest at
contractual average rates of Libor + 5% p.a. for transactions in
U.S. dollar; 1.5% p.a. fixed for transactions in Japanese yen;
and 11% p.a. fixed for a basket of currencies (BNDES).
Approximately 81.3% of the company's total debt - before exchange
swap transactions - was subject to floating interest rates.

Of the total foreign currency financing, approximately 96.4% had
some kind of hedge, with 81.7% being in foreign exchange swap
transactions - of which 86.9% were contracted through final
maturity of the related debts - and 14.7% on financial
investments linked to the exchange variation.

Under the exchange swap transactions, exposure to foreign
currency fluctuations is transferred to local interest rates
(CDI). The average cost of the transactions at the end of the
quarter was equivalent to 100.7% of the CDI rate.

During 4Q03, total funds obtained amounted to R$ 1,191 million,
broken down as follows: (i) R$ 879 million relating to US$ 300
million bond issued by TNL in the international market, in
December, with a 10-year term and a coupon of 8% p.a.; (ii) also
in December, TMAR signed a loan agreement with BNDES, in the
amount of R$ 520 million, for a seven-year term, under which R$
162 million has already been withdrawn (at TJLP + 4.5% p.a.), in
addition to R$ 40 million (at the cost of BNDES currency basket +
4.5% p.a.) - to finance TMAR investment plan for the period
2002/2004; and (iii) R$ 110 million in TMAR, to finance the
wireless investment and working capital program.

At year-end, the amount of intercompany loans from TNL totaled R$
2,745 million, down 17.4% from levels recorded in the end of
Sep/03. Balances recorded at TMAR and Contax were R$ 2,467
million and R$ 124 million, respectively, with the outstanding
balance recorded by other group companies.

During the quarter, 100% of Oi's debt to a syndicate of lenders,
including banks, suppliers and multilateral support agencies, was
transferred to TMAR.

5. Capital Expenditures

During the quarter, Capex totaled R$ 912 million, of which R$ 583
million was allocated to the wireline business and R$ 304 million
to the wireless business.

In 2003, Capex came to R$ 1,682 million (-17.2% from 2002),
representing 12.0% of net revenues (vs. 17.1% in 2002).

6. Summary of Consolidated Cash Flow (TNL)

Consolidated cash flow from operations reached R$ 2,346 million
for the quarter (3Q03 - R$ 1,809 million). After investing
activities, consolidated cash flow reached R$ 1,538 million for
the quarter (R$ 1,423 million in 3Q03) and a total of R$ 4,025
million for 2003 (2002 - R$ 2,302 million).

7. Dividends

In addition to the amount of R$ 458 million already declared as
interest on capital (IOC), TNL management will submit to the
Annual Shareholders Meeting the distribution of dividends in the
amount of R$ 342 million, bringing the total distribution to R$
800 million. TMAR management will propose, in addition to the
amount of R$ 870 million already declared as IOC, the payment of
dividends in the amount of R$ 130 million, bringing the total
distribution to R$ 1 billion.

Both IOC and dividends shall be paid after the Annual
Shareholders Meetings - still to be scheduled - have approved the
financial statements and distribution of net income.

On a subsequent event, on January 28, 2004 the Board of Directors
of both TNL and TMAR authorized the accrual of IOC attributable
to the mandatory dividends to be declared in relation to fiscal
year 2004, in the respective amounts of up to R$ 330 million and
R$ 750 million. Therefore, it authorized the accrual of IOC for
the respective amounts of R$100 million and R$200 million to be
credit to shareholders' positions held on January 30, 2004 (which
actual payments, however, shall be subject to the approval at
both companies' Shareholders' Meetings to take place until April
30, 2005). The shares of the respective companies will start
trading "ex-IOC" at Bovespa on February 02, 2004.


TELEMAR: Authorizes Credit Of Interest On Capital Payment
---------------------------------------------------------
The Board of Directors of Tele Norte Leste Participacoes S.A. has
authorized payment of Interest on Capital ("IOC") to be
distributed along with the mandatory dividends to be declared for
2004. The Company's proposal will be presented and voted on at
the 2005 General Shareholders' Meeting of the Company. Following
are the details:

Brazilian Record Date: January 30, 2004
Brazilian Ex-Date: February 02, 2004
Gross Dividend Rate (per thousand shares): R$ 0.2610
Dividend Payment Date: to follow
Income Tax Withholding Rate: 15%

Please be advised that the above is subject to shareholders'
approval.

CONTACT:  TNE - INVESTOR RELATIONS
          Roberto Terziani
          Email: terziani@telemar.com.br
          Tel:  55 21 3131 1210

          Carlos Lacerda
          Email: carlosl@telemar.com.br
          Tel: 55 21 3131 1314
          Fax: 55 21 3131 1155

          GLOBAL CONSULTING
          Kevin Kirkeby
          Email: kkirkeby@hfgcg.com
          Tel: 1 646.284.9416



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

EDELNOR: Signs Preliminary Accord with Electroandina, NorAndino
---------------------------------------------------------------
A preliminary agreement has been reached between Chilean power
generators Electroandina and Edelnor and the Chilean and
Argentine units of the cross-border NorAndino natural gas
pipeline, reports Business News Americas.

The said agreement is likely to lead to their merger into a
single company, Chile's state copper corporation Codelco
announced.

Codelco and Belgian power company Tractebel own the two
generators, while Tractebel and Edelnor own NorAndino.

The preliminary document addresses certain aspects ahead of a
"global company restructuring" to be carried out this year,
Codelco's statement said, stressing that this restructuring would
not necessarily be a merger.

Electroandina has 1,029MW installed capacity and Edelnor has
720MW. Both are located in Chile's northern grid (SING). Codelco
and Tractebel have spoken in the past of merging the two
companies.



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

AVIANCA: Judge To Decide on Extension Feb. 10
---------------------------------------------
Creditors of Avianca said that a U.S. bankruptcy judge has
postponed until Feb. 10 a decision on whether to grant the
Colombian airline another deadline extension, relates Reuters.

Avianca, which filed for Chapter 11 bankruptcy protection in the
United States last March, is seeking to extend until March 30 the
presentation of its restructuring plan. If granted, the deadline
extension would be Avianca's fifth.

Struggling to keep itself in the air and a possible acquisition
target by Continental Airlines, Avianca had until Jan. 30 to
present the plan.

A source close to Avianca said earlier this week that Continental
Airlines Inc., the No. 5 U.S. airline, is negotiating the
possible purchase of the struggling airline. Continental declined
comment.

CONTACT:  Aerov­as Nacionales de Colombia S.A.
          Avenida Eldorado, No. 93-30
          Bogota, Colombia
          Phone: +57-1-413-9511
          Fax: +57-1-413-9702
          Home page: http://www.avianca.com.co
          Contact:
                    Vytis Didziulis, President
                    Leonor Montoya, Chairman
                    Nelson Gnecco, VP Administration and Finance



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

BANCO POPULAR: Fitch Affirms, Withdraws Ratings
-----------------------------------------------
Fitch Ratings affirms the long and short-term foreign currency
debt ratings of 'B' (Rating Watch Negative) and 'B',
respectively, assigned to the Dominican Republic's Banco Popular
Dominicano, as well as its individual rating of 'D' and support
rating of '5', and simultaneously withdraws the ratings.

The bank's national long and short-term ratings of 'AA-(dom)' and
'F1+(dom)', respectively, are affirmed and remain outstanding.
Fitch will continue to update its outstanding ratings of this
issuer on an on-going basis.

CONTACT:  Carlos Fiorillo
          Caracas
          Phone: +58 212 286 3356

          Franklin Santarelli
          Caracas
          Phone: +58 212 286 3356

          Gustavo Lopez
          New York
          Phone: +1-212-908-0853

          Media Relations
          James Jockle
          New York
          Phone: +1-212-908-0547



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

JPSCO: Faces Deadline to Apply For Tariff Increase
--------------------------------------------------
The Jamaica Public Service Company (JPSCo), a light and power
company, is yet to decide whether to take on an opportunity given
to it under its license to apply for an adjustment in its
tariffs, reports RadioJamaica.

According to the Office of Utilities Regulation (OUR), the
Company has until March one to file an application for an
increase in tariffs. Should the Company decide to seek an
increase, adjustments will take effect on June 1 this year.

In the meantime, JPSCo received kudos for its performance last
year from the road and traffic committee of Kingston and St.
Andrew Corporation. The Company reportedly repaired 6,795
Corporate Area street lamps last year. Committee chairman, Robert
Williams, said the Company's performance had improved
significantly and singled out the JPSCo's community relations
manager, Maurice Reid, for praise.



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

AEROMEXICO: Signs Agreement with TeleTech
-----------------------------------------
TeleTech Holdings, Inc. (Nasdaq: TTEC), a global provider of
customer solutions, announced Thursday a multi-year contract with
AeroMexico, Mexico's largest airline, with annual revenues of
$1.5 billion and serving more than 10 million passengers each
year.

Under terms of the agreement, TeleTech will provide multilingual
support for AeroMexico's ticket sales for the 43 cities in
Mexico, 80 destinations in the U.S. and Canada, and six countries
in Europe and South America that AeroMexico serves. TeleTech will
also support ticket sales and reservations for AeroMexico's Gran
Plan vacation packages.

In addition, TeleTech will expand its inbound customer management
and reservations support to include all of AeroMexico's customers
worldwide. TeleTech will also continue to manage AeroMexico's
customer loyalty program, which has increased AeroMexico's
customer base and improved overall customer satisfaction.

"AeroMexico is committed to providing quality customer
interactions for our valuable customers," said Augusto Fernandez
Kegel, AeroMexico's vice president of marketing products and E-
business. "TeleTech has been providing superior solutions over
the past two years. Our decision to extend the relationship was
based on TeleTech's ability to consistently achieve our business
and customer objectives."

"We are honored that AeroMexico elected to expand its
relationship with TeleTech to manage the majority of their
customer strategies and interactions," said Marcelo Franca,
TeleTech's president and general manager of Latin American
operations. "We will leverage our customer solutions and sales
expertise, combined with our cost improvement initiatives and
operational efficiencies, to help solidify AeroMexico as Mexico's
leading airline."

ABOUT TELETECH

TeleTech, a leading provider of integrated customer solutions,
partners with global clients to develop and execute relevant
solutions that enable them to build and grow profitable
relationships with their customers. TeleTech has built a global
capability supported by 62 customer management centers that
employ more than 31,000 professionals spanning North America,
Latin America, Asia-Pacific and Europe. For additional
information, visit www.teletech.com .


CONE MILLS: Announces Successful Bidder
---------------------------------------
Cone Mills Corporation announced Thursday that the deadline for
bids in the court-approved auction process has passed and that
WLRoss & Co. has entered the highest and best bid. The sale
hearing is scheduled for February 9 in the Delaware Bankruptcy
Court to approve the sale to WLRoss & Co.

About Cone Mills

Founded in 1891, Cone Mills Corporation, headquartered in
Greensboro, NC, is the world's largest producer of denim fabrics
and one of the largest commission printers of home furnishings
fabrics in North America. Manufacturing facilities are located in
North Carolina and South Carolina, with a joint venture plant in
Coahuila Mexico.

URL: http://www.cone.com



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U R U G U A Y
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PARMALAT URUGUAY: Yet to Plan Future Strategy
---------------------------------------------
Parmalat Uruguay is yet to outline strategic plans for the next
few months pending a directive from its parent company, reports
El Observador Economico. According to the unit's Chairman, Jorge
Gutman, the Company has invested US$42 million to US$43 million
since it set a foothold in the domestic market creating 1,400 job
positions. The local unit is already negotiating to settle 40% of
its total US$26 million debt to banks during 2004.




               ***********


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
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Information contained herein is obtained from sources believed to
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members of the same firm for the term of the initial subscription
or balance thereof are $25 each.  For subscription information,
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