TCRLA_Public/040206.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

          Friday, February 6, 2004, Vol. 5, Issue 26

                          Headlines


A R G E N T I N A

AT&T LATIN AMERICA: Telmex Purchase To Be Finalized Next Week
AXESOR: Individual Anticipated at Court Today
BEVERAGE: Court Sets Individual Reports Filing Deadline
BLC: Creditor Claims Reports Due at Court Today
CASA REGES: Receiver To File Individual Reports at Court Today

COELHO CAPITAL: Individual Reports Today Due Today
DIRECTV LA: ADVERSARY PROCEEDING - Raven Media vs. Hughes, et al
EDITORIAL PERFIL: Moody's Rates $25M of Bonds `D'
EL LAVADERO: Court Declares Company Bankrupt
ELIDO PALMERO: Initiates Reorganization Process

ESTABLICIMIENTO SAN IGNACIO: Court OK's Reorganization Petition
FEGITOM: Creditor Claims Review in Bankruptcy Ends Today
GATIC: Court Expected to Rule On Case in February
GRAFICA MARINO: Proofs of Claim Due Today
MULTICANAL: Court Rejects Involuntary Bankruptcy Motion

NII HOLDINGS: Announces Tender Offer For Notes Due 2009
NOA COMUNICACIONES: Receiver Closes Creditor Claims Review
PUMPETE: Receiver Prepares Required Individual Reports
RED FONICA: General Report Due in Court March 12
ROSSI Y VILAPRENO: Bankruptcy Claims Reports Due Today

SUPERBLANK: Claims Authentication Period Ends Today
TRANSPORTE TRASA: Receiver Prepares Individual Reports
VEYKA MATERIALES: Receiver Ends Credit Verification Process


B R A Z I L

AES CORP.: Redeeming Notes Due 2005, 2008
AES TIETE: Moody's Confirms Caa2 Ratings on Certificates
CESP: Eligible to Receive Financing From BNDES, Aneel
EMBRATEL: Caution Advanced Over Incumbent Owners
ENRON: Rio de Janeiro OK's Gas Natural's Purchase of Stakes


C H I L E

PARMALAT CHILE: Bethia in Talks to Acquire Ownership


E L   S A L V A D O R

MILLICOM INTERNATIONAL: Signs MoU in Vietnam for Expansion


M E X I C O

GRUPO MEXICO: Seeks to Transfer SPCC Shares
PARMALAT MEXICO: Denies Operations Sale Pending
SATMEX: Bankruptcy Projected in US or Mexico
SAVIA: Bionova Restructuring Agreement Takes Company Private
TV AZTECA: SEC Prepares to File Accusations in Lawsuit


U R U G U A Y

COPACO: Denies Mobile Operators' Claims Over Unpaid Charges


     - - - - - - - - - -


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

AT&T LATIN AMERICA: Telmex Purchase To Be Finalized Next Week
-------------------------------------------------------------
Telmex, Mexico's largest telco, expects to close by next week its
acquisition of regional corporate communications provider AT&T
Latin America, Business News Americas reports, citing chief
executive Jamie Chico Pardo. Telmex presented the highest bid for
ATTL's assets in a court-sponsored auction on October 23 last
year. The Mexican company beat out Brazil's Embratel and
Argentina's Impsat with an offer to pay US$171 million in cash
and assume US$36 million in debt for ATTL's assets.

Once the transaction closes, Telmex will reveal ATTL's new name
and strategy. The change of name is imperative because the AT&T
trademark was not included in the purchase of ATTL's assets. ATTL
filed for bankruptcy in April 2003 after parent company AT&T
decided to cut off funding.

Telmex is the largest telecommunications company in Mexico,
providing local service, public telephony, domestic and
international long-distance, data transmission, Internet access
and directory services. It is indirectly controlled by Carlos
Slim and his family via its control of Carso Global Telecom,
which owns 72.5% of the controlling shares of Telmex.


AXESOR: Individual Anticipated at Court Today
---------------------------------------------
Estudio Cardero-Rojas, Muniz y Asociados, receiver for Argentine
company Axesor S.A., is scheduled to file individual reports on
the results of the credit verification process at court today.
The receiver is also required to prepare the general report after
the individual reports are processed at court. The general report
contains a summary of the information from the individual reports
and is due for filing on March 19. The reorganization process
would then proceed with the informative assembly on August 9.

Buenos Aires Court No. 20 handles the Company's case with
assistance from Clerk No. 40, an earlier article from the
Troubled Company Reporter - Latin America indicated.

CONTACT:  Axesor S.A.
          Bernardo de Irigoyen 722
          Buenos Aires

          Estudio Cardero-Rojas, Muniz y Asociados
          Doblas 674
          Buenos Aires


BEVERAGE: Court Sets Individual Reports Filing Deadline
-------------------------------------------------------
Court No. 2 of Rosario's Civil and Commercial Tribunal scheduled
the deadline for the individual reports regarding the
reorganization of local company Beverage S.A., relates Infobae.
The individual reports, which contain the results of the credit
verification process, are to be presented to the court on
February 5.

The Company's receiver will also prepare a general report after
the individual reports are processed at court. The source,
however, did not mention the deadline for this report. The court
also set June 21 as the date for the informative assembly.


BLC: Creditor Claims Reports Due at Court Today
-----------------------------------------------
The individual reports for the reorganization of BLC S.A. are due
at Court No. 13 of the Civil and Commercial Tribunal of Santa Fe
today. The Company's receiver, Mr. Ruben Dario Tarbucci, prepared
the reports after the credit verification process was closed.

The Troubled Company Reporter - Latin America disclosed in an
earlier report that the receiver is required to file the general
report on March 22. This report is prepared after the individual
reports are processed at court.

The reorganization process will then proceed with an informative
assembly, but local sources did not mention whether the court has
set the date for this meeting.

CONTACT:  BLC S.A.
          Cerrito 1594
          Rosario, Santa Fe

          Ruben Dario Tarbucci
          Santiago 1070
          Rosario, Santa Fe


CASA REGES: Receiver To File Individual Reports at Court Today
--------------------------------------------------------------
Buenos Aires accountant Ruben Toytoyndjian, receiver for Casa
Reges S.A., is required to file the individual reports for the
Company's bankruptcy today. The reports contain the results of
the credit verification done late last year to determine the
nature and amount of the Company's debts.

The receiver will prepare a general report after the individual
reports are processed at court. This must be submitted to the
court on March 19 next year, the Troubled Company Reporter -
Latin America said in an earlier report.

Buenos Aires Court No. 14 issued the bankruptcy declaration last
year.

CONTACT:  Ruben Toytoyndjian
          Roque Saenz Pena 1219
          Buenos Aires


COELHO CAPITAL: Individual Reports Today Due Today
--------------------------------------------------
Buenos Aires Court No. 23 expects the individual reports for the
bankruptcy of Coelho Capital S.A. to be filed today. The
Company's receiver, Mr. Ricardo Adrogue, prepared the reports
after the credit verification process was completed in November
24 last year, an earlier report by the Troubled Company Reporter
- Latin America revealed.

The general report, which is to be prepared after the individual
reports are processed at court, must be field on March 19. The
Company's assets may then be liquidated to repay creditors.

CONTACT:  Ricardo Adrogue
          Bouchard 468
          Buenos Aires


DIRECTV LA: ADVERSARY PROCEEDING - Raven Media vs. Hughes, et al
----------------------------------------------------------------
Raven Media Investments, LLC asks the Court to subordinate, in
whole or in part, the claims asserted by Hughes Electronics
Corporation against the Debtor to the claims and interests
asserted by Raven.

The Debtor is 75% owned by DirecTV Latin America Holdings, Inc.,
which in turn is a wholly owned subsidiary of Hughes.  Darlene
Investments, LLC owns 20% of the Debtor and Raven owns 4%.  Raven
is a wholly owned subsidiary of Grupo Clarin, Inc., an Argentine
communications company.

Gilbert R. Saydah, Jr., Esq., at Morris, Nichols, Arsht &
Tunnell, in Wilmington, Delaware, relates that Hughes asserted
claims against the Debtor for at least $1,345,000,000, which
allegedly represent 70% of the aggregate claims against the
Debtor.

The Debtor's services are distributed in Argentina by Galaxy
Entertainment Argentina, S.A.  The Debtor owned directly and
indirectly a 49% interest in Galaxy and the remaining 51% was
owned by a wholly owned subsidiary of Grupo Clarin, Inc.  In late
2000, the Debtor purchased that 51% of Galaxy in exchange for:

   -- the issuance of a 4% membership interest in DirecTV Latin
      America; and

   -- separate put rights under a put agreement dated
      November 10, 2000.  

Ultimately, the 4% interest and the separate rights under the Put
Agreement were transferred to Raven.  Under the Put Agreement,
Raven believes that it has a valid general unsecured claim
against the Debtor for not less than $189,000,000.  By a ruling
dated August 22, 2003, the Court held that Raven's claim should
be subordinated pursuant to Section 510(b) of the Bankruptcy
Code.  That ruling is now on appeal.

Hughes confirmed that it was the majority shareholder of DTVLA
and that it understood the terms of the Stock Purchase Agreement
and Put Agreement in a letter to Raven's lender, Chase Manhattan
Bank, dated July 3, 2001.  Hughes controlled the Debtor's
business decisions, and it was important to Hughes that Raven
sells its interest in Galaxy.  The sale will enable Hughes to
gain control of the Argentine market and obtain the maximum
number of subscribers to secure a sale of either the Debtor and
its affiliates in related businesses or Hughes itself, or
otherwise to benefit Hughes or its other subsidiaries.  To
further this goal, Hughes was willing to make, and did make,
decisions pertaining to DTVLA's business that were not in the
best interest of DTVLA and were specifically harmful to Raven, as
DTVLA's minority shareholder and creditor.

Mr. Saydah points out that four of the five members of DTVLA's
Executive Committee are Hughes employees.  The Hughes employees
on the Executive Committee are also senior officers of Hughes.  
Six out of the seven senior officers of DTVLA are Hughes
employees providing services for DTVLA.  Thus, Mr. Saydah says,
the supposed representatives of DTVLA that Raven dealt with were
in actuality employees and fiduciaries of Hughes.

The incentive bonus and stock compensation of the Hughes
employees "seconded" to DTVLA is tied to Hughes' performance, not
DTVLA's.  "Such an arrangement raises inherent conflicts in
Hughes' interest in responsibly managing DTVLA," Mr. Saydah
argues.

Hughes represented to Raven that it operated DTVLA as an
independent entity, not for the benefit of Hughes itself or other
Hughes subsidiaries.  "Such representations were false and
misleading and to the detriment of Raven as a minority
shareholder in DTVLA," Mr. Saydah tells Judge Walsh.

Hughes operated the businesses at issue through both DTVLA, which
was 75% owned by Hughes, and through DTVLA Holdings, which was
100% owned by Hughes.  Various local operating companies and
other companies whose services were crucial to the overall
enterprise were owned by either DTVLA or DTVLA Holdings, with
varying impact on Hughes, depending upon its level of ownership.
On information and belief, Hughes has operated the business of
DTVLA to maximize the corporate benefit to Hughes and other
Hughes subsidiaries and affiliates to the detriment of DTVLA and
its minority shareholders.  Mr. Saydah notes that Hughes
Electronics Corporation, Hughes Electronics Systems
International, DirecTV Latin America Holdings, Inc., Surfin Ltd.,
White Holding Mexico, S. De R.L. De C.V., and White Holding, B.V.
may have made agreements with programmers and suppliers on
different bases for its different subsidiaries to increase
benefit for Hughes rather than to serve the individual interests
of the subsidiaries, including the indirect subsidiary, DTVLA.  
In like manner, Hughes took for itself, or for itself and
Darlene, corporate opportunities that should have been offered to
DTVLA, including its minority shareholder, Raven.

To operate its business, DTVLA now spends approximately
$75,000,000 annually for purchases or certain satellite
communications services, including transmission and satellite
capacity, from California Broadcasting Center LLC.  DTVLA
currently pays CBC $6,300,000 per month or over $75,000,000 per
year for satellite services, which fees are above market rates.
CBC is 100% owned by DirecTV Latin America Holdings and,
therefore, is an affiliate of Hughes.  Indirectly, then, Hughes
receives the proceeds from this arrangement.  On information and
belief, DTVLA spent similar or greater amounts and benefited CBC
in similar ways prior to the Petition Date.

DTVLA delivers and has delivered its programming to subscribers
through 16 local operating companies located throughout South
America.  A number of the LOCs are affiliates of Hughes.  Hughes
essentially controls all of these affiliates.

SurFin, 75% of which is indirectly owned, and thus controlled, by
Hughes, provides financing to the LOCs to purchase the boxes
placed in subscribers' homes to receive broadcast signals.  The
boxes in turn are pledged to SurFin.  Approximately $300,000,000
of that financing allegedly is guaranteed by DTVLA and other
amounts are guaranteed by Holdings.  Upon information and belief,
SurFin overcharged local operating companies for the financing
charges, and further, was in a position to compel a greater cash
flow to SurFin than DTVLA from the local operating companies by
virtue of the pledges it obtained.

Indeed, to the Debtor's detriment, Hughes decided blatantly
prepetition to have the LOCs favor payments to SurFin (and
indirectly, Hughes) over payment of royalties due to DTVLA.  As
Hughes has a different ownership structure in connection with
SurFin, where its sole partner is Darlene, than with DTVLA,
Hughes has manipulated these financial arrangements to disfavor
Raven and other DTVLA creditors.  "Such action is a clear breach
of fiduciary responsibility to Raven as minority shareholder and
creditor," Mr. Saydah asserts.

Also to the Debtor's detriment and in breach of Hughes' duties,
Hughes required DTVLA to guaranty obligations of LOCs that DTVLA
either did not own or that were insolvent.

A number of the Hughes affiliated LOCs apparently require
substantial funding to cover operating losses.  Hughes has had
DTVLA provide such funding in the past, causing the Debtor harm.
In these and various other ways, Hughes has caused these
businesses to be operated in the interest of maximizing Hughes'
overall interests to the detriment of those entities like DTVLA
in which Hughes' interests were less significant.

Furthermore, pursuant to a Final Term Sheet for Equity Interests
of Darlene and Hughes in a Restructuring of DTVLA, dated February
5, 2003, Darlene and Hughes agreed "to use all commercially
reasonable efforts" to include these terms, among others, in a
restructuring or Chapter 11 plan for DTVLA:

   (a) a "roll-up" of DTVLA with a number of its affiliates that
       are owned by Hughes and Darlene;

   (b) a payment by DTVLA of Hughes and Darlene's fees and
       expenses incurred in such a "roll-up transaction";

   (c) a provision "to cause DTVLA to release Darlene from those
       liens, guarantees, and liabilities as are set forth on
       Annex B" to the Term Sheet, with Hughes to "indemnify and
       hold harmless Darlene from any such lien, guarantee or
       liability not so released";

   (d) an allocation of ownership in reorganized DTVLA on a
       specified "ratio" between Hughes and Darlene and the
       distribution to Hughes of "ownership or control of at
       least a majority of the voting equity interests of the
       reorganized DTVLA";

   (e) a grant to Hughes and Darlene of rights to liquidate their
       equity holdings in reorganized DTVLA based on an equity
       value of not less than $1,250,000,000 and with Darlene to
       receive a minimum of $400,000,000 if News Corporation
       obtains control of Hughes or DTVLA; and

   (f) certain minimum representation for Darlene on the board of
       reorganized DTVLA.

Mr. Saydah complains that the agreement entered into between
Hughes and Darlene disadvantaged Raven.  Hughes thus breached its
fiduciary responsibility to Raven as a minority shareholder and
creditor.

Currently, Hughes is DTVLA's DIP financing lender, with
corresponding control over the Debtor's budget and other key
operating decisions.

Hughes did not offer Raven, or any other creditors or equity
holders the opportunity to participate in the benefits of the
restructuring of DTVLA, as identified in the Term Sheet.  Nor has
Hughes offered Raven numerous other corporate opportunities which
rightly belonged to DTVLA rather than Hughes itself or Hughes and
Darlene.

Additionally, through prepetition advances to the Debtor and by
buying bank debt of the Debtor rather than having such debt paid
by the Debtor, Hughes effectively made prepetition equity
contributions to the Debtor that Hughes has attempted to disguise
as simple debt.

According to Mr. Saydah, Raven has been investigating its
defenses against the claims asserted by Hughes and its
affiliates, but has only recently received a large number of
documents from DTVLA and Hughes, and expects to receive more in
the near future, which relate to these defenses.  

             Equitable Subordination of Hughes' Claims

By virtue of their overreaching and unfair and deceptive trade
practices and the utter domination and control of the Debtor, its
business and its affairs, Hughes et al. acted to:

   -- benefit themselves at the expense of Raven in particular,
      as well as the Debtor's creditors and estate; and

   -- secure an unfair advantage to themselves.

Mr. Saydah asserts that equitable subordination, in whole or in
part, of the claims filed by Hughes et al. to those of Raven is
consistent with the provisions of the Bankruptcy Code.

         Re-characterization of Hughes' Prepetition Loans
                    or Assumed Loans as Equity

Mr. Saydah argues that Hughes should not be permitted to use its
unique position, as majority shareholder of DTVLA through
Holdings, to disguise prepetition equity contributions as bank
debt so as to infuse large amounts of capital into the Debtor
while retaining its debt claims.

"The principles of equity require, therefore, that these loans or
assumed loans be re-characterized as equity capital and that any
purported liens and security interests securing their repayment
are declared void and of no effect," Mr. Saydah says.

                      Hughes Et Al. Respond

Hughes Electronics Corporation, Hughes Electronics Systems
International, DirecTV Latin America Holdings, Inc., Surfin Ltd.,
White Holding Mexico, S. De R.L. De C.V., and White Holding, B.V.
ask the Court to dismiss Raven's complaint.  

Rebecca L. Scalio, Esq., at Richards, Layton & Finger, PA, in
Wilmington, Delaware, relates that the Complaint fails to state a
claim upon which relief can be granted.

Ms. Scalio contends that Raven lacks standing to seek the relief
sought in the Complaint.  Raven is not a creditor of the Debtor
but is only an equity interest holder.  Pursuant to the Debtor's
Disclosure Statement, the statutory committee of the Debtor's
unsecured creditors has already analyzed the effect of
subordinating all of the claims held by Hughes against the Debtor
and has determined that even under the circumstances, the Debtor
would be unable to satisfy more than a small portion of the
unsecured creditors' claims.  Because the subordination of all of
Hughes' claims would not provide the Debtor's unsecured creditors
with full satisfaction of their claims, equity holders like Raven
would be entitled to no recovery from the Debtor's estate.  
Accordingly, Ms. Scalio asserts that Raven's rights are not
affected by whether Raven's claims against the Debtor are
subordinated or re-characterized as equity.  Thus, Raven has no
standing to assert claims for subordination or re-
characterization.

Ms. Scalio also clarifies that:

   -- 74.6872% of the equity in DTVLA is owned by Holdings;

   -- 21.2187% of the equity in DTVLA is owned by Darlene
      Investments, LLC; and

   -- 3.9765% of the equity in DTVLA is owned by Raven.

Hughes et al. reserve the right to assert additional defenses as
they arise and become apparent. (DirecTV Latin America Bankruptcy
News, Issue No. 19; Bankruptcy Creditors' Service, Inc., 215/945-
7000)


EDITORIAL PERFIL: Moody's Rates $25M of Bonds `D'
-------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. assigned
default ratings to US$25 million of corporate bonds issued by
Argentine company Editorial Perfil S.A., according to a report by
the Comision Nacional de Valores, the country's securities
regulator. The Company's finances as of the end of September last
year were used as basis for the `D' rating.

The rating, which is given to bonds that are in payment default,
applies to bonds called "Primera serie de Obligaciones
Negociables", the CNV relates. These were classified under
"Series and/or Class".


EL LAVADERO: Court Declares Company Bankrupt
--------------------------------------------
Court No. 8 of the Civil and Commercial Tribunal of Rosario in
Santa Fe officially assigned El Lavadero S.R.L. the status of
"Quiebra", according to a report by Argentine news portal
Infobae. The case is likely to close with the liquidation of the
Company's assets to repay creditors. The source, however, did not
mention whether the court has chosen a receiver for the
bankruptcy process.

CONTACT:  El Lavadero S.R.L.
          Corrientes 3323
          Rosario, Santa Fe


ELIDO PALMERO: Initiates Reorganization Process
-----------------------------------------------
Argentine company Elido Palmero S.A. will undergo reorganization
on orders from Rosario Court No. 15. The ruling overrides an
earlier declaration that placed the Company under bankruptcy,
according to local news portal Infobae.

Creditors are required to file their claims by February 9. The
receiver, Mr. Alfredo Bozzi, is required to file the individual
reports on the verification results at court on March 22. The
general report, to be prepared after the individual reports are
processed at court, must be filed on May 4.

The informative assembly will be held on September 7. This is one
of the last parts in a reorganization process.

CONTACT:  Elido Palmero S.A.
          Curapaligue 5949
          Rosario, Santa Fe

          Alfredo Bozzi
          Cordoba 797
          Rosario, Santa Fe


ESTABLICIMIENTO SAN IGNACIO: Court OK's Reorganization Petition
---------------------------------------------------------------
Court No. 9 of the Civil and Commercial Tribunal of Corrientes
approved a motion for "Concurso Preventivo" filed by local
company Establicimiento San Ignacio S.A., reports Argentine news
Infobae. The Company will undergo reorganization with Mr. Ismael
Elbio Ybarra as receiver.

The credit verification process will end on March 8 this year.
This is done to establish the existence, nature and amount of the
Company's debts. The receiver is required to prepare the
individual and general reports on the case. The informative
assembly, one of the last parts of the reorganization process,
will be held on November 23.

CONTACT:  Establicimiento San Ignacio S.A.
          Irigoyen 827
          Corrientes

          Ismael Elbio Ybarra
          Belgrano 1068
          Corrientes


FEGITOM: Creditor Claims Review in Bankruptcy Ends Today
--------------------------------------------------------
Creditors of Mar del Plata-based company Fegitom S.R.L. must have
their claims authenticated by the Company's receiver already as
the deadline for verifications expires today. Creditors' claims
are examined to determine the nature and amount of the Company's
debts.

The individual reports, which contain the verification results,
must be filed at court on March 24. The general report, which is
prepared after the individual reports are processed at court,
must be filed on May 7.

Court No. 4 of the Civil and Commercial Tribunal of Mar del Plata
called for an informative assembly to be held on October 5.

CONTACT:  Horacio Redolati
          Rawson 2271
          Mar del Plata


GATIC: Court Expected to Rule On Case in February
-------------------------------------------------
The future of Argentine textile company Gatic could be decided in
February, when the court in charge of its formal restructuring
proceeding continues to evaluate the Company after January's
judicial holiday. In February, Gatic is also expected to receive
a response from its creditors regarding its offer to refinance
some ARS500 million in debt and its plan to rent four of its
plants to an investment group led by Guillermo Gotelli, a former
Alpargatas manager.

Representatives of Gatic's three creditor banks - Nacion, Bapro
and Ciudad - met with Gotelli and Fabian Bakchellian (president
of the company) last week, business daily Infobae reported
Wednesday. Gotelli and Bakchellian explained their plan to reopen
some of Gatic's plants and to repay the debts. According to
sources that attended this meeting, the banks' representatives
would have not been very enthusiastic about the proposal and
would be expecting an improved offer before they are willing to
continue with talks.

Even though the court in charge of Gatic's formal restructuring
proceeding has already approved the terms of the proposed rental
contract, the final decision lies on creditor banks.

Gotelli wants to rent four of Gatic's plants for an annual
payment of ARS12 million during more than ten years. This money
would be used by Bakchellian to repay debts, which means he would
need around 50 years to settle Gatic's liabilities.

In another order, a group of Gatic's employees would be planning
to file for the Company's involuntary bankruptcy this week.


GRAFICA MARINO: Proofs of Claim Due Today
-----------------------------------------  
The credit verification process for the bankruptcy of Buenos
Aires company Grafica Marino S.R.L. ends today. The Company's
receiver, Ms. Maria Alejandra Barbieri will prepare the
individual reports, as ordered by the court.

The receiver's duties include the preparation of a general report
after the individual reports are processed at court. Local news
sources, however, did not indicate the deadlines for these
reports.

Buenos Aires Court No. 13 handles the Company's case, the
Troubled Company Reporter - Latin America said in an earlier
report.

CONTACT:  Maria Alejandra Barbieri
          Ave Cabildo 2040
          Buenos Aires       


MULTICANAL: Court Rejects Involuntary Bankruptcy Motion
-------------------------------------------------------
A US bankruptcy court issued a verdict that will prevent the
recent bankruptcy filing against Argentine cable TV firm
Multicanal in the US from blocking the Company's debt
restructuring proceeding, Multicanal informed Tuesday. Three
creditors that hold US$160 million of Multicanal's bond debt
requested the involuntary bankruptcy of the Company before the
bankruptcy court for the Southern District of New York on January
28.

In a filing to the Buenos Aires stock exchange Tuesday,
Multicanal announced that the court had issued a verdict that
enables the Company to take all the possible actions allowed by
the Argentine law in order to proceed with its out-of-court
settlement, or APE, for the restructuring of its debt.

The court decision also ensures that the bankruptcy filing does
not interfere with the participation of Multicanal's creditors,
or any other person, in the APE.

Multicanal has submitted the APE reached with two-thirds of its
creditors for court approval and is now waiting for an answer.
The Company is trying to restructure US$500 million in debt.


NII HOLDINGS: Announces Tender Offer For Notes Due 2009
-------------------------------------------------------
NII Holdings, Inc. (Nasdaq: NIHD) announced Wednesday that its
wholly owned subsidiary, NII Holdings (Cayman), Ltd. ("NII
Cayman"), is commencing a cash tender offer and consent
solicitation relating to all of NII Cayman's 13% Senior Secured
Discount Notes due 2009 (the "13% Notes," ISIN USG6520PAA33).
Payment of principal and interest on the 13% Notes is
unconditionally guaranteed by NII Holdings, Inc. In connection
with the tender offer, NII Cayman is also soliciting consents to
adopt amendments to the indenture under which the 13% Notes were
issued that would eliminate substantially all restrictive
covenants and certain event of default provisions. This offer is
being made subject to the terms and conditions set forth in NII
Cayman's Offer to Purchase and Consent Solicitation Statement
dated February 4, 2004.

The consideration to be paid by NII Cayman for each $1,000
principal amount at maturity of the 13% Notes validly tendered
and accepted for payment pursuant to the tender offer will be
$1,165 (the "Total Consideration"), which includes a consent
payment (the "Consent Payment") of $20 per $1,000 principal
amount at maturity of the 13% Notes that will be paid only for
tendered 13% Notes for which consents have been validly delivered
and not revoked prior to 5:00 p.m., New York City time, on
February 18, 2004, unless extended (the "Consent Payment
Deadline"). Holders whose 13% Notes are validly tendered after
the Consent Payment Deadline, but prior to midnight, New York
City time, on March 3, 2004, unless extended (the "Expiration
Time"), will not receive the Consent Payment with respect to such
13% Notes, but will instead receive the Total Consideration less
the Consent Payment, which is equal to $1,145 per $1,000
principal amount at maturity of the 13% Notes validly tendered.

NII Cayman intends to finance the tender offer with intercompany
loans from NII Holdings, Inc. and cash on hand. NII Holdings,
Inc. intends to use a portion of its proceeds from the issuance
of its 27/8% Convertible Notes due 2034 to fund its inter-company
loans to NII Cayman.

NII Cayman's obligation to accept for purchase and to pay for the
13% Notes validly tendered in the tender offer is conditioned on,
among other things, the satisfaction of a requisite consents
condition and a minimum tender condition, each as described in
more detail in the Offer to Purchase and Consent Solicitation
Statement.

This announcement is not an offer to purchase, nor a solicitation
of an offer to purchase or solicitation of consent with respect
to, any 13% Notes. The tender offer and consent solicitation are
being made solely by the Offer to Purchase and Consent
Solicitation Statement.

NII Cayman has retained Citigroup to serve as the dealer manager
and Global Bondholder Services Corporation to serve as both the
information agent and the depositary for the tender offer.
Requests for documents may be directed to Global Bondholder
Services Corporation by telephone at (866) 470-4100, or in
writing at 65 Broadway, Suite 704, New York, New York 10006.
Questions regarding the tender offer should be directed to
Citigroup at (212) 723-6106 or (800) 558-3745, attention:
Liability Management Group.

About NII Holdings, Inc.

NII Holdings, Inc., a publicly held company based in Reston, Va.,
is a leading provider of mobile communications for business
customers in Latin America. NII Holdings, Inc. has operations in
Argentina, Brazil, Mexico and Peru, offering a fully integrated
wireless communications tool with digital cellular service,
text/numeric paging, wireless Internet access and Nextel Direct
Connectr, a digital two-way radio feature. NII Holdings, Inc.
trades on the NASDAQ market under the symbol NIHD. The Company's
website is found at http://www.nii.com.

Nextel, the Nextel logo, Nextel Online, Nextel Business Networks
and Nextel Direct Connect are trademarks and/or service marks of
Nextel Communications, Inc.

CONTACT:  Investor Relations:
          Tim Perrott
          Phone: (703) 390-5113
          Email: tim.perrott@nii.com

          Media Relations:
          Claudia E. Restrepo
          Phone: (786) 251-7020
          Email: claudia.restrepo@nii.com


NOA COMUNICACIONES: Receiver Closes Creditor Claims Review
----------------------------------------------------------
Ms. Maria Alicia Bertolot, receiver for Argentine-based Noa
Comunicaciones S.A., closes the credit verification for the
Company's bankruptcy today. As ordered by the court, the receiver
will prepare the individual reports, which are due on March 19.

The general report, to be submitted at the court on May 6, will
be prepared after the individual reports are processed at Buenos
Aires Court No. 8, which handles the Company's case. Clerk No. 15
works with the court on the case, the Troubled Company Reporter -
Latin America indicated in an earlier report.

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

CONTACT:  Maria Alicia Bertolot
          Sarmiento 2593
          Buenos Aires


PUMPETE: Receiver Prepares Required Individual Reports
------------------------------------------------------
The bankruptcy process of Argentine company Pumpete S.A. moves
forward with its receiver preparing the individual reports. An
earlier report by the Troubled Company Reporter - Latin America
indicated that the credit verification period expires today.

Last year, Buenos Aires Court No. 4, which is under Dr.
Ottolenghi, approved a petition for the Company's bankruptcy on
failure to meet its financial obligations. Clerk No. 8, Dr. Anta,
aids the court on the case.

CONTACT:  Pumpete S.A.
          5th Floor
          Tucuman 633
          Buenos Aires

          Mario Leizerow
          6th Floor, Office F
          Ave Corrientes 1250
          Buenos Aires


RED FONICA: General Report Due in Court March 12
------------------------------------------------
The general report for the reorganization of Red Fonica S.A. is
due for filing on March 12 this year. This report is a
consolidation of the individual reports that were processed at
Court No. 2 of the Civil and Commercial Tribunal of Santa Fe.


ROSSI Y VILAPRENO: Bankruptcy Claims Reports Due Today
------------------------------------------------------
Ms. Maria Marta Sommariva, the receiver for Argentine company
Rossi y Vilapreno S.A., is required to file the individual
reports for the Company's bankruptcy process today. The reports
contain the results of the credit verification process completed
late last year.

The receiver will also prepare a general report after the
individual reports are processed at court. The deadline for the
submission of this report is March 19 next year, an earlier
report by the Troubled Company Reporter - Latin America revealed.
The Company's assets would then be liquidated to reimburse its
creditors.

CONTACT:  Maria Marta Sommariva
          Florida 930
          Buenos Aires


SUPERBLANK: Claims Authentication Period Ends Today
---------------------------------------------------
The credit verification period for the bankruptcy of Buenos Aires
company Superblank S.R.L. expires today. Creditors must have
their claims authenticated by the Company's receiver, Mr. Ricardo
Bataller, in order to qualify for payments to be made after the
Company's assets are liquidated.

According to the Troubled Company Reporter - Latin America in an
earlier report, Buenos Aires Court No. 1 handles the Company's
case with assistance from Clerk No. 1. Local sources did not
reveal the deadlines for the filing of the receiver's reports.

CONTACT:  Ricardo Bataller
          Junin 684
          Buenos Aires


TRANSPORTE TRASA: Receiver Prepares Individual Reports
------------------------------------------------------
The bankruptcy of Argentine company Transporte Trasa S.R.L.
proceeds with its receiver preparing the individual reports.
Court No. 2 of Civil and Commercial Tribunal of Salta in
Argentina handles the Company's case.

The Company's receiver, Estudio F.C.F. y Asociados, is required
to file the individual reports at the court on March 24, followed
by the general report on May 10. The individual reports contain
the results of the verification process, while the general report
is a consolidation of the individual reports.

The Company's assets will be liquidated at the end of the
bankruptcy process to repay its creditors. Payments will be based
on the results of the verification process.

CONTACT:  Transporte Trasa S.R.L.
          Ave V Zambrano 120
          Salta

          Estudio F.C.F. y Asociados
          20 de Febrero 631
          Salta


VEYKA MATERIALES: Receiver Ends Credit Verification Process
-----------------------------------------------------------
Veyka Materiales S.A.'s receiver, Mr. Guillermo Alberto Ickowicz,
closes the credit verification process for the Company's
bankruptcy today. As ordered by the court, the receiver will
prepare the individual reports on the verification results.

Buenos Aires' Court No. 7 declared the Company bankrupt last
year, according to an earlier report by the Troubled Company
Reporter - Latin America. Clerk No. 13 assists the court on the
case.

CONTACT:  Guillermo Alberto Ickowicz
          Talcahuano 768
          Buenos Aires



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

AES CORP.: Redeeming Notes Due 2005, 2008
-----------------------------------------
The AES Corporation (NYSE: AES) announced Wednesday that it
called for redemption $155,049,000 aggregate principal amount of
its outstanding 8% Senior Notes due 2008, which represents the
entire outstanding principal amount of the 8% Senior Notes due
2008, and $34,174,000 aggregate principal amount of its
outstanding 10% secured Senior Notes due 2005. The 8% Senior
Notes due 2008 and the 10% secured Senior Notes due 2005 will be
redeemed on March 8, 2004 at a redemption price equal to 100% of
the principal amount plus accrued and unpaid interest to the
redemption date. The mandatory redemption of the 10% secured
Senior Notes due 2005 is being made with a portion of AES's
"Adjusted Free Cash Flow" (as defined in the indenture pursuant
to which the notes were issued) for the fiscal year ended
December 31, 2003 as required by the indenture and will be made
on a pro rata basis.

CONTACT:  AES Corporation
          Scott Cunningham
          Phone: 703-558-4875


AES TIETE: Moody's Confirms Caa2 Ratings on Certificates
--------------------------------------------------------
Moody's Investors Service confirmed its Caa2 rating on the
certificates due 2016 issued by the AES Tiete Grantor Trust and
revised the rating outlook to positive from negative, reports
Business News Americas. The certificates are guaranteed by AES
Tiete Holding, a holding company of AES Tiete.

The Caa2 rating reflects the issuer's default on the note payment
that was due on December 15, 2003, although the contractual
interest payment was subsequently made in full by the end of that
month.

In addition, the rating reflects Moody's view that the
restructuring of the terms of the certificates took place due to
a "distressed situation" in which expected dividend flows from
AES Tiete were unlikely to cover near-term debt service payments
under the original terms of the issuance.

The outlook change to positive from negative reflects the closing
of the restructuring of the certificates and the resulting
reduction in required debt service payments in 2004 and 2005.

The positive outlook is also based on Moody's view that the
dividends received from the operating company are likely to cover
the restructured debt service obligations after January 1, 2006,
the statement said.

Another factor is the successful restructuring of US$1.2 billion
in debt owed by AES Tiete to Brazil's national development bank
BNDES.

AES Tiete is a Brazilian hydro generation subsidiary of US power
company AES Corp..


CESP: Eligible to Receive Financing From BNDES, Aneel
-----------------------------------------------------
Sao Paulo energy secretary Mauro Arce revealed that the Sao Paulo
state government is seeking financing from Brazil's national
development bank BNDES and power regulator Aneel to pay some of
generator Cesp's US$3.5 billion of debts, relates Business News
Americas.

Cesp, which faces a US$300-million payment to the national
treasure this year, could tap into a US$1-billion bail-out loan
program offered by BNDES to power distributors to help them
restore their financial health following a slump in the power
consumption market during the 2001-2002 rationing, Arce said.

Cesp meets all the requirements for the loan since it is not owed
any money by its controlling shareholder, which is the Sao Paulo
state government.

At the same time, Cesp is also eligible to obtain BRL86 million
(US$30 million) from Aneel for having increased generation
capacity during the rationing period.

CONTACT:    Companhia Energetica De Sao Paulo (CESP)
            Rua da ConsolaO o, 1.875
            CEP 01301 -100 S o Paulo, Brazil
            Phone: +55-11-234-6322
            Fax: +55-11-287-0871
            Home Page: http://www.CESP.com.br/
            Contact:
            Mauro G. Jardim Arce, Chairman
            Ruy M. Altenfelder Silva, Vice Chairman
            Vicente Kazuhiro Okazaki, Finance Director


EMBRATEL: Caution Advanced Over Incumbent Owners
------------------------------------------------
The purchase of Brazilian telecoms operator Embratel by three
fixed line incumbents - Telemar (NYSE: TNE), Brasil Telecom
(NYSE: BRP) and Spain's Telefonica (NYSE: TEF) - could be
considered dangerous to competition and merits further
investigation, according to a preliminary report prepared by
Brazil's economic antitrust authority SDE.

Embratel's current controlling shareholder, MCI, put its 19.3%
share of total capital up for sale in November, saying the
Brazilian operator is not part of its core business. MCI will
soon open Embratel's data room to allow potential buyers to
scrutinize its financial books.

However, SDE also wants to investigate this possibility, saying
that make available information in its data room would also
damage competition in the local market.

"If Embratel makes available data that allows a unification of
its commercial strategies with those of its three main
competitors... such behavior could damage economic order," SDE
official Alessandra Viana Reis was quoted as saying.

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


ENRON: Rio de Janeiro OK's Gas Natural's Purchase of Stakes
-----------------------------------------------------------
Spain's Gas Natural SDG obtained clearance from Rio de Janeiro
state government to purchase the stakes of bankrupt US company
Enron in gas distributors CEG and CEG Rio for an undisclosed
amount. The authorization, according to Jornal do Commercio, came
with a pledge from Gas Natural to investment BRL117 million
(US$40 million) to expand operations through 2005. The state
government said it would grant environmental licenses for the
expansion of the gas network.

Business News Americas reports that the sale of the stakes still
needs approval from the regional agency for public services
concessions known as Asep.

Enron currently holds 25.4% of CEG and 33.8% of CEG Rio.

Gas Natural's ownership of the distributors will increase to
54.2% and 72%, respectively.



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

PARMALAT CHILE: Bethia in Talks to Acquire Ownership
----------------------------------------------------
Chilean investment firm Bethia Group said Wednesday it is in
talks to take a stake in the local unit of crisis-hit Italian
food giant Parmalat, relates Reuters. Bethia is reportedly
negotiating to take control of 51% of Parmalat in Chile through a
capital increase operation. Local media have mentioned figures
ranging from US$20 million to US$25 million.

"Grupo Bethia informs that it is in talks about buying a stake of
Parmalat Chile, as a strategic partner," the firm said in a one-
paragraph faxed statement with no further details.

Parmalat in Chile has accumulated a debt of more than CLP1.1
billion (US$1.9 million) with some 200 local milk producers who
last Friday stopped their supplies. Deliveries will not be
resumed until payment is received, the suppliers said.

Meanwhile, the suppliers, mainly from the southern cities of
Chillan and Valdivia, have started delivering milk to other
processors.



=====================
E L   S A L V A D O R
=====================

MILLICOM INTERNATIONAL: Signs MoU in Vietnam for Expansion
----------------------------------------------------------
Millicom International Cellular S.A. ("Millicom") (Nasdaq:MICC)
announces that its subsidiary, Comvik International Vietnam
("Comvik"), has signed a Memorandum of Understanding with its
partners in Vietnam, VMS (a subsidiary of the Vietnam Posts and
Telecommunications), to confirm their intention to extend the co-
operation for the long term. The co-operation will comply with
the prevailing legislation for telecommunication ventures in
Vietnam at that time.

Marc Beuls CEO commented "This Memorandum of Understanding
confirms that our partners do wish to deepen the relationship
between our two companies. Our co-operation through Comvik is
seen as the most successful BCC in the telecommunications sector
and this has been recognized by the recent Golden Dragon Award as
the "Best Company in the field of Telecommunications" granted by
the Vietnamese Ministry of Planning and Industry, showing the
strong foundations for our future co-operation."

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

CONTACT:  MILLICOM INTERNATIONAL CELLULAR S.A., LUXEMBOURG
          Marc Beuls, President and Chief Executive Officer
          Telephone:  +352 27 759 327
          Web site at: www.millicom.com

          SHARED VALUE LTD, LONDON
          Andrew Best, Investor Relations
          Telephone:  +44 20 7321 5022



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

GRUPO MEXICO: Seeks to Transfer SPCC Shares
-------------------------------------------
Grupo Mexico, the world's third-largest copper producer, is
proposing to transfer 99% holdings in Mexican mining unit Minero
Mexico to Southern Peru Copper Corp (SPCC) in exchange for
additional SPCC shares, reports Dow Jones. Grupo Mexico, which
owns 54.2% of Lima-based SPCC, said that the purpose of the
proposed transaction is to create a "high quality mining asset"
with the world's second largest copper reserves.

If the transaction goes through, SPCC shares would trade as a
single class on the New York Stock Exchange, while Grupo Mexico
would maintain its listing on Mexico City's bourse.

Grupo Mexico said it "understands" that SPCC has designated a
special committee of its board members to evaluate the proposal.
The committee will pass recommendations on to the board and
shareholders.

Grupo Mexico acquired its stake in SPCC in 2001 with the US$2.2
billion acquisition of Arizona-based Asarco Inc.

SPCC is Peru's largest copper miner and is also owned by Cerro
Trading Company (14.2%), Phoenix-based Phelps Dodge (14.0%) and
other shareholders (17.6%).

CONTACT:  GRUPO MEXICO S.A. DE C.V.
          Avenida Baja California 200,
          Colonia Roma Sur
          06760 Mexico, D.F., Mexico
          Phone: +52-55-5264-7775
          Fax: +52-55-5264-7769
          Home Page: http://www.gmexico.com
          Contacts:
          Germ n Larrea Mota-Velasco, Chairman and CEO
          Xavier Garca de Quevedo Topete, President and COO
          Alfredo Casar Perez, COO, Ferrocarril Mexicano
          Daniel Chavez Carren, COO, Industrial Minera Mexico
          Daniel Tellechea Salido, VP and Administration and
                                         Finance President


PARMALAT MEXICO: Denies Operations Sale Pending
-----------------------------------------------
Unlike its Chilean counterpart, the Mexican unit of Parmalat
doesn't have any plans of selling its local operations, Reuters
reports, citing a top executive of the Company.

"We are not in talks with anyone to sell the business," Hugo
Lara, the director general of Parmalat's operations in Mexico,
said in an e-mail reply to a Reuters question.

Mr. Lara went on to say that there were no plans to close
Parmalat's plant in the western town Lagos de Moreno or cut jobs
there. Parmalat says its supplies 7% of Mexico's 1.3 billion
liter per year pasteurized milk market.


SATMEX: Bankruptcy Projected in US or Mexico
--------------------------------------------
Satelites Mexicanos (Satmex) is at risk of entering into Chapter
11 in the US, or its Mexican equivalent (concurso mercantil), the
Mexican satellite firm's directors admitted, says El Economista.
However, Arturo Gonzalez Arquieta, vice president of Operations
and Corporate Communication for the company, said this doesn't
mean that the Company will enter bankruptcy.

Gonzalez explained that Satmex plans to undergo refinancing for
more than US$700 million in order to be able to pay insurance on
its satellite, Satmex VI, for US$50 million and thus not delay
the satellite's launch date further.

Satmex is expected to meet with creditors this week to conclude
the refinancing project in no more than two months.

According to Gonzalez, the refinancing, in which US$525 million
is being negotiated with private creditors and US$180 million
with the Government, is pending due to the fact that negotiations
were suspended last December due to the Christmas holiday.


SAVIA: Bionova Restructuring Agreement Takes Company Private
------------------------------------------------------------
Bionova Holding Corporation (Pink Sheets: BVAH) announced
Wednesday that it entered into an "Agreement in Principle" with
Savia, S.A. de C.V. dated as of February 2, 2004 that provides
for a financial restructuring of the company. In conjunction with
this financial restructuring Bionova Holding will become a
private company through a merger in which public stockholders
will be paid $0.09 per share for each share they hold of the
Company's common stock.

Bionova Holding's management stated there were two principal
reasons for undertaking the restructuring at this time. First,
Bionova Holding's debt with Savia, which amounted to $79.8
million, became due and payable to Savia on December 31, 2003. As
a consequence, the Company currently is in default on this debt
obligation, as well as certain other debt obligations. Second, as
the Company has continued to sustain operating losses and its
cash position has continued to deteriorate, it will not be able
to afford the high, and ever-increasing costs of remaining a
public company.

The financial restructuring of the Company generally involves
four transactions, as follows. First, the Company will issue
26,959,097 shares of the Company's common stock to its parent
company, Savia, in satisfaction of part of the principal amount
of the debt the Company owes to Savia (the "Exchange"). Second,
Savia will then consolidate these new shares with the indirect
equity interest held in the Company by its wholly-owned
subsidiary, Ag-Biotech Capital LLC (18,076,839 shares) in a new
subsidiary, Newco. Newco's holding of 45,035,936 shares will then
represent 90.1% of all authorized shares of the Company. Third,
Savia will forgive the balance of the $79.8 million of its debt
with Bionova Holding (the "Debt Forgiveness"). And finally,
immediately after the Debt Forgiveness, Newco will effect a
short-form merger with the Company (the "Merger"). In the Merger
public stockholders will be paid $0.09 per share for each share
of the Company's common stock they hold. Though the Company's
cash resources are severely limited and the Company is not able
to repay its debt to Savia, Savia has agreed in principle to
these transactions and to the cash payment to the stockholders in
the Merger. The Company's unaffiliated stockholders will not have
any right to vote on the Merger, but will have the right to
dissent from the Merger and exercise their statutory right to
appraisal in accordance with Delaware law.

Bionova Holding's Board of Directors unanimously approved the
Exchange and determined not to oppose the Merger. The Board
engaged the services of AgriCapital Securities Inc.
("AgriCapital"), an investment banker with significant experience
in the agriculture business, to act as a financial advisor to the
Board to advise and assist the Board as the Board considered the
desirability of, and developed a general strategy for, effecting
the Exchange, the Debt Forgiveness and the Merger taking into
consideration the best interests of the unaffiliated minority
stockholders of the Company. AgriCapital rendered an opinion to
the Board that (i) the $0.09 per share Merger consideration to be
paid to the Company's stockholders (other than Savia and its
affiliates), is fair, from a financial point of view, to such
stockholders and (ii) the issuance of shares of the Company's
common stock in connection with the Exchange is fair, from a
financial point of view, to the Company.

Savia and the Company filed Wednesday a Transaction Statement on
Schedule 13E-3 with the Securities and Exchange Commission and
hope to complete the transactions prior to the end of the first
quarter of 2004. However, due to potential delays associated with
complying with applicable legal requirements, and because the
closing is subject to conditions to closing, the exact date of
the closing, or whether the transactions will close at all,
cannot be predicted with certainty. The conditions to the closing
of the transactions include the approval by the Board of
Directors of Savia of the Exchange, the Debt Forgiveness and the
Merger; the passing of 20 days from the date of the mailing of
the Schedule 13E-3 Statement to shareholders of the Company; the
negotiation and execution of a definitive Exchange Agreement
mutually acceptable to the Company and Savia; the absence of any
law or order or other event which would prevent the Exchange, the
Debt Forgiveness or the Merger; there not having occurred any
event that, in Savia's good faith judgment, resulted in an actual
or threatened material adverse change in the business or
condition of the Company since the date of the Agreement in
Principle; the absence of any threatened or pending litigation or
other legal action relating to the Exchange, the Debt Forgiveness
or the Merger; AgriCapital's fairness opinion not being withdrawn
prior to the consummation of the Exchange, the Debt Forgiveness
and the Merger; not more than 10% of the unaffiliated
stockholders elect to exercise their statutory dissenters' rights
in connection with and prior to the effectiveness of, the Merger;
and neither the Company nor Savia incurring significant expenses
associated with the Exchange, the Debt Forgiveness or the Merger,
other than approximately $650,000 of professional fees and other
expenses that the Company contemplates will be incurred by the
filing parties in connection with the preparation and
dissemination of the Schedule 13E-3 Statement and the closing of
the Exchange, the Debt Forgiveness and the Merger in an efficient
and prompt manner.

Upon the closing of the transactions, Bionova Holding will become
a privately-held company. Accordingly, upon closing, the
registration of the Company's stock under the Securities Exchange
Act of 1934 will terminate, Bionova Holding's reporting
obligations under that Act will terminate, and there will no
longer be a public market for Bionova Holding's shares.

Bionova Holding Corporation is a leading fresh produce grower and
distributor. Its premium Master's Touchr and FreshWorld Farmsr
brands are widely distributed in the NAFTA market. Bionova
Holding Corporation is majority owned by Mexico's Savia, S.A. de
C.V.


TV AZTECA: SEC Prepares to File Accusations in Lawsuit
------------------------------------------------------
US financial regulator, the Securities and Exchange Commission,
is preparing fraud accusations in a case involving Mexico's TV
Azteca and Ricardo Salinas Pliego, the group's chairman, the
Financial Times reveals. SEC, which is close to filing the
accusations in a lawsuit, is likely to allege that the debt
transaction between TV Azteca and an entity indirectly controlled
by Salinas, has harmed investors.

Unefon, a Mexican cellular company controlled by Salinas, went
through lengthy litigation with Nortel Networks of Canada, a
supplier, over US$325 million in outstanding debt, until an
entity called Codisco bought the debt in July last year for
US$107 million. Azteca subsequently paid off the debt in full,
paying US$325 million to Codisco.

Mr. Salinas denied that he controlled Codisco at the time of
these transactions. However, TV Azteca announced early in January
that he indirectly controlled 50% of Codisco, while a fellow
businessman, Moises Saba, controlled the remainder. Mr. Salinas
and Saba allegedly made a profit of US$218 million from the
transaction.

The US SEC does not comment on individual cases. However, people
close to the agency said it had warned the Company recently that
it had to respond to serious allegations of fraud soon or face a
federal civil case in the US.

TV Azteca is already facing private lawsuits in the US over the
issue and has vowed to contest the allegations vigorously.



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

COPACO: Denies Mobile Operators' Claims Over Unpaid Charges
-----------------------------------------------------------
Paraguay's state-owned telecoms operator Copaco insists that it
only owes mobile operators US$20 million in unpaid access
charges, belying mobile operators' claims that the Company owes
them US$50 million. According to Business News Americas, Copaco
blames the government for not paying US$18 million in overdue
bills.

Moreover, Copaco president Juan Francisco Godoy denied
allegations that the cash was being withheld from the operators
and instead invested on Copaco's behalf.

Mobile operators are also owed some US$3.17 million in unpaid
access charges for terminating international calls on their
networks. Copaco said it is owed US$5 million from international
operators, part of which is owed by Argentina's Telecom and is
part of a settlement that includes the local mobile unit Personal
de Paraguay.

In an earlier report, the Troubled Company Reporter - Latin
America said that private-sector mobile operators are urging
Copaco to settle its multi-million debts with them if telecoms
regulator Conatel wants to move ahead with plans to implement a
telecoms clearinghouse.

Conatel was reported to be tendering a contract to implement the
clearinghouse. Operators, however, said the current debts must be
paid and clear ground rules for the new system must be laid down.




               ***********


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.


* * * End of Transmission * * *