TCRLA_Public/040212.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

          Thursday, February 12, 2004, Vol. 5, Issue 30

                          Headlines


A R G E N T I N A

AOL LATIN AMERICA: Full Year, 4Q 2003 Losses Shrink
BANCO DE GALICIA: Fitch Rates $412M of Bonds `D(arg)'
CAISSA: Court Requires Individual Reports Today from Receiver
CASA NERVION: Individual Reports Today Due to be Filed Today
CLISA: Argentine Fitch Rates Bonds `CCC(arg)'

DIPERFIL: Receiver Closes Creditor Claims Review Today
EL CORCHO: Individual Reports Due at Court Today
ENCASA: Receiver Prepares Individual Reports in Reorganization
FEPSA: Receiver Verifies Creditors' Claims
FRIGORIFICO INDUSTRIAL: Claims Validation in Bankruptcy Ends

INTERNATIONAL LINGERIE: Bankruptcy Credit Review Winds Up
IRSA: $250M of Corporate Bonds Rates `B(arg)' by Fitch
LIVE TEX: Court Declares Company Bankrupt
MASTEX: Receiver Closes Credit Review in Bankruptcy
MOLPLAST: Bankruptcy Credit Review Period Expires Today

PETROBRAS ENERGIA: Posts P$143M Loss In 4Q03
RALIMET: Bankruptcy's Credit Review Due to Terminate Today
SANCOR: $300M of Bonds Get `D' Rating From Moody's
SANTORIO DEL SUR: Creditor Claims Verification Ends Today
SEMILLAGRO: Bankruptcy Process Advances With Reports

SUENO ESTELAR: Informative Assembly Slated for Today
TEXTIL ARIES: General Report Filing Deadline Today
TGS: Ends 2003 With ARS286.2 Million Net Income


B R A Z I L

AES CORP.: Prices $500M Unsecured Senior Notes for Sale
AHOLD: Likely to Close Sale With Wal-Mart Soon
BANCO BRADESCO: BEM Buy Won't Affect Ratings According to S&P
ELETROPAULO METROPOLITANA: Positive Results Won't Affect Ratings
PARMALAT FIDC: S&P Withdraws Ratings on FIDC After Liquidation

TELEMAR: Increases Fixed to Mobile Service Rates
VARIG/TAM: Postpone Merger Plans Indefinitely


C H I L E

COEUR D'ALENE: Acquires Tanzania Property


C O L O M B I A

AVIANCA: Court Grants Extension to Present Restructuring Plan


M E X I C O

CONE MILLS: Court Approves Sale to WL Ross & Co.
TV AZTECA: Discloses 'Chiapas Jaguares' Transmission Rights


P U E R T O   R I C O

CENTENNIAL COMMUNICATIONS: Completes Refinancing Transactions


V E N E Z U E L A

CANTV: Standard & Poor's Upgrades Ratings to 'CCC'


    - - - - - - - - - - -

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

AOL LATIN AMERICA: Full Year, 4Q 2003 Losses Shrink
---------------------------------------------------
America Online Latin America, Inc. (Nasdaq:AOLA) announced
Tuesday that its net loss for the quarter ended December 31,
2003, narrowed 32% from the same period last year. The Company
also reduced cash used in operations 63% from the year-earlier
period. Net loss, as compared to the third quarter of 2003, was
down by 8%, while cash used in operating activities decreased by
21% during the period.

Based on these results, the Company has extended its forecast for
its use of available cash. AOL Latin America believes that under
its current operating plan, cash on hand will be sufficient to
fund operations into the first quarter of 2005.

The Company's fourth quarter 2003 net loss applicable to class A
common stockholders, which includes dividends to preferred
stockholders, was $26.4 million, or $0.20 per class A common
share, basic and diluted, compared with a loss of $38.6 million,
or $0.58 per share basic and diluted, for the prior year period.
The average number of class A shares outstanding during the
fourth quarter of 2003 increased to 135.2 million from 67.1
million in the prior-year period due to the January 2003
conversion of preferred stock to class A common stock by the
Company's principal stockholders. The increase in the number of
shares of class A common stock outstanding had the effect of
reducing reported loss per share in the fourth quarter of 2003
relative to the comparable 2002 period. The 2003 fourth quarter
net loss applicable to common stockholders also compares with a
third quarter 2003 net loss of $28.6 million, or $0.21 per share.

AOL Latin America's net loss before dividends on preferred stock
was $22.4 million in the fourth quarter of 2003, narrowing from a
net loss of $33.8 million in the prior-year period and from $24.2
million in the third quarter of 2003.

Total revenue was $14.9 million in the fourth quarter of 2003,
down 16% from $17.8 million in the fourth quarter of 2002 and
down 8% from $16.3 million in the third quarter of 2003.
Subscription revenue totaled $13.8 million, down 10% compared
with $15.3 million in the year-earlier quarter and down 7% from
$14.8 million in the third quarter of 2003. Reduced membership
drove lower subscription revenues. Advertising and other revenue
totaled $1.1 million in the fourth quarter of 2003, down 57% as
compared with $2.5 million in the prior-year period, and down
27%, from $1.5 million, in the third quarter of 2003.

Year-End Membership

The Company had 462,000 members at December 31, 2003, down from
492,000 members on September 30, 2003. The decline in membership
was due to lower levels of new member registrations which were
insufficient to offset membership turnover. New member
registrations were negatively impacted by continued strong price
competition from providers of free and paid Internet services in
Brazil and the continued delay in the implementation of the
McDonald's "McInternet" initiative in Brazil, which the Company
does not expect will be completed until the beginning of 2005.
AOL Latin America expects a further similar decline in membership
in the first quarter of 2004.

As with the Company's previous membership reports, the 462,000
membership total includes members participating in free trial
periods and retention programs, as well as members of the co-
branded Banco Itau service. Totals include members of the AOL
country services, Web-based interactive services and broadband
offerings. Approximately 12% of the membership totals as of
December 31, 2003 were subscribers to the Company's Web-based
interactive services. Those services were launched in the third
quarter.

As of December 31, 2003, 81% of the Company's members, including
members still on their trial periods, had selected credit cards,
direct debit and other non-cash payment options, which have a
better rate of collection than cash-payment methods.

Improved Cash Utilization

Cash used in operating activities in the fourth quarter of 2003
was $7.5 million, a decrease of 63% from $20.0 million used in
the fourth quarter of 2002 and an improvement of 21% from $9.5
million, in the third quarter of 2003. The improvement in cash
used in operating activities was achieved largely as a result of
lower costs and expenses. Cash and cash equivalents totaled $32.9
million at December 31, 2003, and as in the prior quarter,
benefited from a payment from Banco Itau to the Company in lieu
of certain marketing activities. AOL Latin America received $1.8
million from Banco Itau in the 2003 fourth quarter. AOL Latin
America expects to continue to receive similar payments from
Banco Itau in the future, although the amounts of these payments
are expected to decrease.

For the full 2003 fiscal year, cash used by operations was $46.1
million, an improvement of $81.6 million as compared with cash
utilization of $127.7 million in fiscal 2002.

The Company expects cash utilization to increase modestly in the
first quarter of 2004, primarily as a result of working capital
fluctuations.

Management Comments

Charles Herington, President and CEO of AOL Latin America, said,
"AOL Latin America made important progress in streamlining its
business in 2003, while at the same time launching new services
that are designed to appeal to the next generation of Latin
American Internet users. These services include a new family of
Web-based interactive services in Brazil, including our new AOL
MAXX broadband offering, and a Web-based service in Argentina. A
new Web-based offering is currently being tested in Mexico and
Puerto Rico. We also launched the newest version of our AOL
software, AOL 9.0, late last year for members in Puerto Rico."

"In terms of financial performance, the Company has focused on
more efficient operations, including negotiated reductions in
networking costs, consolidation of our Spanish-language member
services operations and reduced marketing expenditures. These
efforts have allowed us to consistently lower our net losses and
reduce the cash used in operating activities. We will seek to
make continued progress as we move ahead," Herington continued.

Full-Year Financial Results

For the full year ended December 31, 2003, the Company's net loss
applicable to class A common stockholders was $116.6 million, or
$0.88 per share of class A common stock, basic and diluted,
compared with a loss of $180.6 million, or $2.69 per share, in
2002. The average number of common shares outstanding during the
year increased to 132.9 million, up from 67.1 million in 2002, as
a result of the conversion of preferred stock to common stock in
January 2003. The increase in the number of shares of class A
common stock outstanding had the effect of reducing reported loss
per share in 2003 fiscal year relative to 2002.

Total revenue was $65.2 million in 2003, down 10% as compared
with $72.1 million in 2002. Subscription revenue totaled $59.4
million, a decrease of 6% as compared with $63.0 million in the
prior year. Advertising and other revenue was $5.8 million in
2003, down 37% from $9.1 million in 2002.

About AOL Latin America

America Online Latin America, Inc. (Nasdaq:AOLA) is the exclusive
provider of AOL-branded services in Latin America and has become
one of the leading Internet and interactive services providers in
the region. AOL Latin America launched its first service, America
Online Brazil, in November 1999. America Online, Inc., a wholly
owned subsidiary of Time Warner Inc. (NYSE:TWX), and the Cisneros
Group of Companies, are AOLA's principal stockholders. Banco
Itau, a leading Brazilian bank, is also a minority stockholder of
AOL Latin America. The Company combines the technology, brand
name, infrastructure and relationships of America Online, the
world's leader in branded interactive services, with the
relationships, regional experience and media assets of the
Cisneros Group of Companies, one of the leading media groups in
the Americas. The Company currently operates services in Brazil,
Mexico and Argentina and serves members of the AOL-branded
service in Puerto Rico. It also operates a regional portal
accessible at http://www.aola.com.America Online members
worldwide can access content and offerings from AOL Latin America
through the International Channels on their local AOL services.

CONTACT:  America Online Latin America, Inc.
          Fort Lauderdale
          Monique Skruzny
          Phone: 954/689-3119
          Email: aolairr@aol.com


BANCO DE GALICIA: Fitch Rates $412M of Bonds `D(arg)'
-----------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. assigned default
ratings to a number of corporate bonds issued by Banco de Galicia
y Buenos Aires. The ratings, based on the Company's finances as
of the end of September last year, affect a total of US$412
million.

According to Argentina's securities regulator Comision Nacional
de Valores, the `D(arg)' rating applies to US$200 million of
bonds called "Obligaciones Negociables a Largo Plazo". Some
US$150 million of the bonds are called "Obligaciones
Negociables", while the remaining US$62 million of bonds are
called "Obligaciones Negociables (con garant¡a MIGA)". The
affected bonds were all classified under "Simple Issue" and their
maturities were not revealed.

Fitch said that the said rating is assigned to bonds that are in
payment default.


CAISSA: Court Requires Individual Reports Today from Receiver
-------------------------------------------------------------
Buenos Aires Court No. 12 expects the receiver for Caissa S.A. to
file the individual reports today. The reports contain the
results of the credit verification process completed late last
year. The Company's receiver, local accountant Hugo Daniel
Pantaleo, will also prepare a general report after the individual
reports are processed at court.

The report, which is a summary of the information in the
individual reports are to be passed to the court on March 25.
Clerk No. 24 assists the court on the case, an earlier report by
the Troubled Company Reporter - Latin America revealed. The
Company's assets will be liquidated at the end of the bankruptcy
process to reimburse its creditors.

CONTACT:  Caissa S.A.
          San Martin 201
          Buenos Aires

          Hugo Daniel Pantaleo
          Avenida Corrientes 1450
          Buenos Aires


CASA NERVION: Individual Reports Today Due to be Filed Today
------------------------------------------------------------
Jorge Omar Inafuku, receiver for Casa Nervion S.A., is expected
to file the individual reports for the Company's bankruptcy
today. The receiver prepared these reports after the verification
process was closed in November last year.

According to the Troubled Company Reporter - Latin America in an
earlier report, the receiver will prepare a general report after
the individual reports are processed at court. This report should
be filed on March 25. The Company's assets will then be
liquidated to reimburse creditors.

CONTACT:  Jorge Omar Inafuku
          Cerrito 1070
          Buenos Aires


CLISA: Argentine Fitch Rates Bonds `CCC(arg)'
---------------------------------------------
Corporate bonds issued by Argentine company CLISA received a
`CCC(arg)' rating from Fitch Argentina Calificadora de Riesgo
recently. The rating applies to bonds that possess a significant
risk of nonpayment.

The bonds, called "Obligaciones Negociables con garant¡a (AGO 21-
01-03, AD 23-01-03)" by the Comision Nacional de Valores, were
classified under "Simple Issue". The bonds will mature on June 1,
2012.


DIPERFIL: Receiver Closes Creditor Claims Review Today
------------------------------------------------------
Mr. Marcos Enrique Gonzalez, receiver for bankrupt Argentine
company Diperfil SRL, closes the credit verification process
today. This part of the bankruptcy process was done to ascertain
the nature and amount of the Company's debts as well as the
authenticity of creditors' claims.

Buenos Aires Court No. 25, which handles the Company's case,
requires the receiver to file the individual reports on March 24,
2004, followed by the general report on May 10, 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. Proceeds will go to payments to creditors, based on the
results of the verification process.

CONTACT:  Marcos Enrique Gonzalez
          Lavalle 1537
          Buenos Aires


EL CORCHO: Individual Reports Due at Court Today
------------------------------------------------
The individual reports for the bankruptcy of Buenos Aires company
El Corcho S.A. are due at court today. The Company's receiver,
Mr. Luis Horacio Stamati, prepared the reports after the credit
verification process was closed on November 26 last year.

The general report, which is to be prepared after the individual
reports are processed at court, must be filed on March 3. This is
a summary of the information in the individual reports, which
contain the results of the verification process. Creditors'
claims were verified to determine the nature and amount of the
Company's debts.

CONTACT:  Luis Horacio Stamati
          Ave Rivadavia 3320
          Buenos Aires


ENCASA: Receiver Prepares Individual Reports in Reorganization
--------------------------------------------------------------
Mr. Tito Gargalione, receiver for Argentine company Encasa S.A.,
will prepare the individual reports for the Company's bankruptcy
as the credit verification process is slated to end today. The
individual reports contain the verification results.

In an earlier report, the Troubled Company Reporter - Latin
America said that Buenos Aires Court No. 1 approved the Company's
motion for "Concurso Preventivo", granting it Company permission
to undergo reorganization. Clerk No.1 assists the court on the
case.

CONTACT:  Encasa S.A.
          Uruguay 651
          Buenos Aires

          Tito Gargaglione
          Medrano 833
          Buenos Aires


FEPSA: Receiver Verifies Creditors' Claims
------------------------------------------
Argentine accountant Juan Treppo will examine and authenticate
creditors' claims for the reorganization of Fundaci¢n para el
Estudio y Tratamiento de la Psicosis y Autismo en Ninos,
Adolescentes y Adultos (FEPSA) until March 12 this year. The
receiver will then prepare the individual reports after
verifications are closed.

A report by Argentine daily La Nacion indicates that insolvency
judge Bavastro of Buenos Aires Court No. 17 approved the
Company's motion for "Concurso Preventivo". Clerk No. 33, Dr.
Trebino Figueroa, works with the court on the case.

The informative assembly will be held on July 23. This is one of
the last parts of a reorganization process.

CONTACT:  FEPSA
          Ave Santa Fe 5141
          Buenos Aires

          Juan Treppo
          Sarmiento 1138
          Buenos Aires


FRIGORIFICO INDUSTRIAL: Claims Validation in Bankruptcy Ends
------------------------------------------------------------
The credit verification period for the bankruptcy of local
company Frigorifico Industrial Marplatense S.A. ends today.
Creditors must have their claims authenticated by Ms. Angelica
Beatriz Ercoreca, the Company's receiver, in order to qualify for
payments to be made after the Company's assets are liquidated at
the end of the process.

Court No. 9 of the Civil and Commercial Tribunal of Mar del Plata
in Argentina issued the bankruptcy order, according to an earlier
article by the Troubled Company Reporter - Latin America.

The receiver's duties cover the preparation of the individual and
general reports on the case. However, the source did not mention
whether the court has set the reports' deadlines for submission.

CONTACT:  Frigorifico Industrial Marplatense S.A.
          25 de Mayo 2837
          Mar del Plata

          Angelica Beatiz Ercoreca
          Corrientes 1847
          Mar del Plata


INTERNATIONAL LINGERIE: Bankruptcy Credit Review Winds Up
---------------------------------------------------------
The bankruptcy of Argentine company International Lingerie S.A.,
proceeds with its receiver preparing the individual reports. The
credit verification period allotted by Buenos Aires Court No. 1
expires today.

Insolvency Judge Dieuzei dehandles the Company's case with
assistance from the city's Clerk No. 2, according to an earlier
report by the Troubled Company Reporter - Latin America. The
court declared the company bankrupt in approval of a petition
filed by the Company's creditor for nonpayment of debt.

CONTACT:  International Lingerie S.A.
          Ave Corrientes 2495
          Buenos Aires

          Ruben Faure
          3rd Floor, Room F
          Rivadavia 1237
          Buenos Aires


IRSA: $250M of Corporate Bonds Rates `B(arg)' by Fitch
------------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. assigned a `B(arg)'
rating to US$250 million of corporate bonds issued by Argentine
company IRSA Inversiones Representaciones S.A., relates the
Comision Nacional de Valores, the country's securities regulator.

The rating, based on the Company's finances as of September 30,
2003, applies to bonds called "Programa Global de Obligaciones
Negociables". These were classified under "Program", with
undisclosed maturity date.

Fitch said that the rating is assigned to bonds that have some
risk of nonpayment.


LIVE TEX: Court Declares Company Bankrupt
-----------------------------------------
Buenos Aires Court No. 21 declared local company Live Tex S.R.L.
"Quiebra", according to Argentine news portal Infobae. The
Company will undergo the bankruptcy process with Mr. Jorge
Edmundo Sahade as receiver.

Creditors are required to file their claims before March 5 this
year. The receiver will examine and authenticate claims to
determine the nature and amount of the Company's debts.

The individual reports, which contain the results of the credit
verification process, are due at the court on April 16. The
receiver will also prepare a general report, to be filed on May
31 after the individual reports are processed at court.

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 verification process.

CONTACT:  Live Tex S.R.L.
          Azcuenaga 497
          Buenos Aires

          Jorge Edmundo Sahade
          Ave de Mayo 1324
          Buenos Aires


MASTEX: Receiver Closes Credit Review in Bankruptcy
---------------------------------------------------
Argentine accountant Ernesto Oscar Bautista, receiver for the
bankruptcy of Mastex S.R.L., closes the credit verification
process today. As ordered by Buenos Aires Court No. 16, the
receiver will prepare the individual reports on the verification
results, which will be used as basis for payments after the
Company's assets are liquidated at the end of the bankruptcy
process.

The receiver is also required to prepare a general report on the
case. In the meantime, the source did not mention whether the
court has set the deadlines for the submission of the receiver's
reports.

The Troubled Company Reporter - Latin America revealed in an
earlier report that Clerk No. 30 assists the court on the case.

CONTACT:  Ernesto Oscar Puerta
          Juan Bautista Alberdi 1145
          Buenos Aires


MOLPLAST: Bankruptcy Credit Review Period Expires Today
-------------------------------------------------------
The credit verification period for the bankruptcy of Argentine
company Molplast S.A. ends today. Creditors must present their
proofs of claims to the receiver for verification before the said
date in order to qualify for payments to be made after the
Company's assets are liquidated.

The Company's receiver, Mr. Luis Maria Guastavino, will prepare
the individual reports on the results of the verification
process. These are due for filing on April 28 next year. The
receiver is also required to prepare a general report, due on
June 10, 2004, after the individual reports are processed at
court.

In an earlier report, the Troubled Company Reporter - Latin
America, revealed that Buenos Aires Court No. 18 declared the
Company "Quiebra". Clerk No. 35 assists the court on the case.

CONTACT:  Luis Maria Guastavino
          Nicolas Repetto 1115
          Buenos Aires


PETROBRAS ENERGIA: Posts P$143M Loss In 4Q03
--------------------------------------------
Petrobras Energia Participaciones S.A. (Buenos Aires: PBE NYSE:
PZE) announces the results for the fourth quarter ended December
31, 2003.

- The Company posted a P$143 million loss in 2003 fourth quarter
compared to a P$97 million loss in 2002 quarter.

The loss for 2003 quarter was mainly attributable to the
following:

- Lower exploration investments in Block 31, Ecuador, and San
Carlos area, Venezuela: Considering the current development stage
for Block 31 and the gradual capital expenditure program designed
for the medium term in line with the currently expected cash
flow, and following the successful effort method implemented by
the Company in its oil and gas production and exploration
activities, the Company charged to income capitalized investments
in both blocks having a duration of over one year and recorded a
P$170 million loss.

- Operations in Ecuador: On account of the new schedule of
investments required to develop Block 31 and the new vision about
the Block potentiality and since the Company estimates that
during the transportation contract term oil production will be
lower than the 80,000 bbl/d capacity committed, a P$176 million
loss was recorded.

- P$156 million loss attributable to the valuation at market
value of hedging agreements accounted for as non-hedge agreements
in line with the significant increase in the future curve of
reference crude oil prices.

- A P$45 million provision for environmental remediation.

- These results are partially offset by equity in earnings of
utility companies, mainly as a result of the reversal of
provisions recorded as of September 30, 2003, to adjust to the
respective recoverable value the book value of equity interest in
CIESA, TGS's controlling company, and Citelec, Transener's
controlling company (a P$197 million gain). Such recovery is
attributable to the significant appreciation of TGS's and
Transener's listed shares during the quarter.

- In 2003 quarter and for the twelve-month period ended December
31, 2003, the Company proportionately consolidated on a line-by-
line basis the assets, liabilities, income and cash flow of
Compania de Inversiones de Energia S.A. (CIESA) which falls
within the category of companies under joint control. As of
December 31, 2002 such proportional consolidation was not made
since as of such date the Company's equity interest in CIESA
valued under accounting standards consistent with the Company's
standards would have accounted for a negative value calculated
under the equity method.

- Sales totaled P$1,511 million in 2003 quarter and P$5,494
million in 2003 fiscal year.

- Gross profit for 2003 quarter was P$545 million. Gross profit
for 2003 fiscal year totaled P$2,108 million. Gross margin was
36.1% and 38.4% for 2003 quarter and 2003 fiscal year,
respectively.

- Operating income totaled P$143 million in 2003 quarter and
P$1,232 million in 2003 fiscal year.

- During 2003 fiscal year, the Company's shareholders' equity
increased 8.6%.

Net Sales

In 2003 quarter net sales increased to P$1,511 million or 20.8%.
The 2003 quarter includes P$113 million attributable to the
proportional consolidation of CIESA not included in 2002 quarter.
Excluding this effect, sales increased P$147 million or 11.8%.
Such rise mainly derives from a P$82 million increase in the
refining business and a P$80 million increase in the oil and gas
exploration and production business.

Gross Profit

Gross profit for 2003 quarter increased to P$545 million or
27.3%. The 2003 quarter includes P$64 million attributable to the
proportional consolidation of CIESA not included in 2002 quarter.
Excluding this effect, gross profit rose 12.4%. This improvement
is mainly attributable to an increase in gas sales volumes and
prices in the oil and gas production and exploration business
segment and an improvement in gross profit resulting from the
proportional consolidation of Distrilec.

In contrast, and due to a specific increase in refining business
costs during 2003 quarter, gross profit for such business dropped
P$27 million. Gross profit for the petrochemical business
declined P$4 million in 2003 quarter mainly due to the impact of
the peso appreciation on dollar-denominated sales prices.

Administrative and selling expenses

During 2003 quarter administrative and selling expenses dropped
to P$147 million or 8.1%, mainly due to the effect of the peso
appreciation on expenses incurred abroad and reduced expenses in
Argentina in terms of pesos, partially offset by the proportional
consolidation of CIESA. Administrative and selling expenses
include charges for Affiliates under Joint Control in the amount
of P$23 million and P$15 million for 2003 and 2002 quarters,
respectively. Excluding such charges, the ratio of administrative
and selling expenses to sales for Petrobras Energia
Participaciones and its subsidiaries was 9.7% in 2003 quarter and
12,7% in 2002 quarter.

Other Operating Expenses

Other Operating Expenses accounted for P$78 million and P$4
million losses in 2003 and 2002 quarters, respectively.

The loss for 2003 quarter is mainly attributable to:

- A P$45 million loss attributable to a provision for
environmental remediation.

- P$13 million loss attributable to the tax on banking
transactions.

- P$10 million gain attributable to advisory services provided to
other companies

Financial income (expense) and holding gains (losses)

Financial income (expense) and holding gains (losses) increased
to P$295 million in 2003 quarter from P$125 million in 2002
quarter. This P$170 million increase is mainly attributable to:

- P$47 million for higher financial expenses attributable to
Affiliates under Joint Control.

- A P$50 million drop in net interest expense in 2003 quarter due
to an about 10% decline in dollar-denominated net indebtedness
and the peso appreciation.

- The 2002 quarter includes a P$220 million loss attributable to
adjustment for inflation and income (loss) from conversion and
translation not included in 2003 quarter due to discontinuance of
the adjustment for inflation method.

- The exchange difference line shows a P$12 million loss in 2003
quarter and a P$301 million gain in 2002 quarter, accounting for
a net loss of P$313 million.

- A P$155 million increase in the loss attributable to derivative
instruments in 2003 quarter.

Other Expenses, net

Other expenses, net accounted for P$252 million and P$152 million
losses for 2003 and 2002 quarters, respectively.

The loss for 2003 quarter is mainly attributable to the
following:

- P$176 million loss attributable to a provision for operations
in Ecuador.
- A P$37 million impairment charge for gas areas in Argentina.
- A P$15 million loss attributable to loans granted to production
joint ventures in Venezuela.

Balance Sheet

The Consolidated General Balance Sheet as of December 31, 2003
includes the following amounts attributable to Affiliates under
Joint Control:

- P$3,485 million for Property, Plant and Equipment.
- P$2,150 million for Short-Term Debt.
- P$88 million for Long-Term Debt.

Statement of Cash Flows

In the Statement of Cash Flows as of December 31, 2003, the 2003
quarter includes the following amounts attributable to Affiliates
under Joint Control:

- P$43 million for depreciation
- P$40 million for acquisition of property, plant and equipment
- P$382 million for cash at closing

OPERATING INCOME BY BUSINESS SEGMENT

Oil and Gas Exploration and Production

- Net sales for 2003 quarter increased to P$730 million or 12.3%
mainly due to the rise in oil and gas sales volumes. This rise in
volumes results from the strike in Venezuela as from 2002 fourth
quarter and discoveries in Argentina at the Austral basin in 2003
quarter. Oil and gas daily sales volumes increased to 165.9
thousand barrels of oil equivalent or 10.5% in 2003 quarter. Oil
sales volumes rose to 118.1 thousand barrels per day or 13.2% in
2003 quarter. Gas sales volumes increased to 286.6 million cubic
feet per day or 4% in 2003 quarter.

During 2003 quarter, the average oil price, including the effects
of hedging transactions and taxes on exports, increased to P$61.4
per barrel or 0.5%. The average oil sales price in 2003 quarter
results from an 11% increase in WTI to US$31.2 per barrel. This
increase was partially offset by a 19% appreciation of the peso
against the US dollar.

Taxes on exports from Argentina account for a P$14.6 million and
a P$31.4 million lower revenue in 2003 and 2002 fourth quarters,
respectively. Such drop is attributable to increased sales in the
domestic market in the period under review.

In Argentina, sales for 2003 quarter increased to P$409 million
or 11.7%. This change mainly results from:

- A 2.5% increase in oil and gas sales volumes to 92.3 thousand
barrels of oil equivalent. As a result of the investment plan
implemented in 2003, drilling operations conducted in Santa Cruz
II area resulted in the discovery and delineation of new
accumulations. Oil sales volumes rose to 56.3 thousand barrels
per day or 2.4% in 2003 quarter. Gas sales volumes increased to
216 million cubic feet per day or 2.7%.

- Oil sales price per barrel rose to P$72.1 or 9% mainly due to
the increase in the international reference price, the
recognition in income for 2003 quarter of intercompany sales to
the refining business at a lower-than-market price as a
consequence of the agreement between producers and refineries
whereby a price of US$ 28.5 per barrel was set, lower taxes on
exports during 2003 quarter and the reduced impact of hedge
agreements.

- Gas sales price rose to P$1.78 per thousand cubic feet or 12.7%
mainly due to the renegotiation of intercompany sales agreements
during 2003 fiscal year and the increase in the price of gas
exported to Chile which is subject to fluctuations in the price
of methanol.

Combined sales of oil and gas outside of Argentina increased to
P$321 or 13% during 2003 quarter. Total oil and gas sales volumes
rose to 73.6 thousand boe/d or 22.2% in 2003 quarter. The average
oil sales price dropped to P$51.7 per barrel or 7% mainly as a
consequence of the peso appreciation, partially offset by a rise
in the international reference price and a reduced impact of
hedge agreements. Oil and gas sales in Venezuela increased to
P$164 million or 14.7% in 2003 quarter.

The average oil price per barrel dropped to P$39.6 or 10.6% due
to the peso appreciation, partially offset by a change in the
hedging policy and an increase in WTI. Daily sales volumes of oil
equivalent increased to 47.8 thousand barrels or 29.2% in 2003
quarter mainly due to the strike during 2002 quarter.

Oil sales in Ecuador totaled P$41.9 million in 2003 quarter while
no significant sales were recorded in 2002 quarter. The
Development Plan for Block 18 was approved in 2002 fourth quarter
and thereafter the Company started drilling operations
particularly at Palo Azul field. Daily crude oil sales volumes in
2003 quarter, net of the Government's interest, totaled 5.4
thousand bbl/d.

- Gross profit in 2003 quarter increased to P$328 million or
23.3%. Gross margin on sales increased to 44.9% in 2003 quarter
from 40.9% in 2002 quarter. This rise is attributable to the
increase in sales volumes and sales prices.

- Administrative and selling expenses dropped 28.6% in 2003
quarter as a consequence of the peso appreciation which had an
impact on foreign operations. The ratio of administrative and
selling expenses to sales was 6.2% in 2003 quarter and 9.7% in
2002 quarter.

- Exploration expenses increased P$152 million to P$177 million
in 2003 quarter. In 2003 quarter a Ps.170 million charge to
income is recorded for exploration investments made in Block 31
in Ecuador and in the San Carlos - Tinaco area in Venezuela.

- Other operating income for 2003 quarter accounted for a P$59
million loss compared to a P$1 million gain in 2002 quarter. In
2003 quarter provisions were recorded for royalties related
pending litigation with the provinces and for environmental
remediation.

Hedge of Produced Crude Oil Price

The Company, as a crude oil producer, is exposed to the related
price-fluctuation risk. In such conditions, the Company uses
various derivative instruments to mitigate such risk. These
instruments use West Texas Intermediate (WTI) as reference price,
which is used mainly to determine the sales price in the market.

Liquid Hydrocarbon and Natural Gas Reserves

As of December 31, 2003, liquid hydrocarbon and natural gas
proved reserves, audited by Gaffney, Cline & Associates, amounted
to 758.1 million barrels of oil equivalent (569.1 million barrels
of oil and 1,134.8 billion cubic feet of gas). This accounts for
a 6.7% decline compared to reserves certified as of December 31,
2002 (4.1% for liquid hydrocarbons and 13.6% for natural gas).

During the 2002-2003 period, the change in the investment
dynamics for all the Company's businesses, focused on cash
generation and maintenance of adequate liquidity levels, affected
the reserve replacement strategy. Production of proved
undeveloped reserves was prioritized with the consequent drop in
the level of area exploration and acquisition activities (a major
source of reserve replacement) in comparison with the ideal
levels for the previous years, with the resulting adverse effect
on the addition of reserves. In line with the above mentioned,
during 2003 fiscal year the reserve replacement ratio was 33%,
due to the fact that production of 57.9 million barrels of oil
equivalent was partially offset by a net addition of 19.3 million
barrels of oil equivalent as detailed below:

- Through the implementation of secondary recovery projects which
added 26.7 million barrels of oil equivalent.

- From extensions to known accumulations and discoveries as a
result of the good results achieved in drilling and workover
campaigns: 33 million barrels of oil equivalent were added.

- In addition, and based on the performance of the different
fields and the projects implemented during 2003, negative
technical reviews totaled 40.4 million boe mainly attributable to
an adjustment in the forecasts for fields where secondary
recovery operations were performed.

In addition, reserves dropped by 15.9 million barrels of oil
equivalent due to the sale of Catriel Oeste and Faro Virgenes
areas in Argentina.

Liquid hydrocarbons and natural gas account for 75% and 25%,
respectively, of total proved reserves. Sixty per cent (60%) of
total proved reserves are located outside of Argentina. The
higher share of foreign operations mainly reflects reduced
investments in Argentina compared to gas projects, which were
restricted by lower prices in the domestic market, with the
consequent adverse impact on the addition of reserves through
improvements resulting from recoveries, extensions and
discoveries.

As of December 2003, at 2003 oil and gas production levels, total
oil and gas proved reserves account for a 13.1-year horizon.

Refining

Operating income for the refining business segment recorded an
P$11 million loss in 2003 quarter compared to an P$18 million
gain in 2002 quarter, mainly attributable to a reduction in the
business contribution margins.

Gross profit dropped P$27 million to P$10 million in 2003
quarter. Gross margin on sales declined to 2.8% in 2003 quarter
from 13.2% in 2002 quarter, mainly due to an 8% drop in sales
prices and particularly an increase in costs, partially offset by
increased sales volumes.

As regards costs, in spite of a 10.6% average increase in crude
oil international reference prices, crude oil average price in
the domestic market dropped to P$80.2 per barrel or 3% in 2003
quarter due to the peso appreciation. In 2003 quarter an
adjustment was made, however, to reflect in the business results
the crude oil cost at market price. Until the third quarter of
2003, the cost implied the application of Resolution 85/03
whereby refineries committed themselves to reflect a reference
crude oil price of US$28.5 per barrel in their domestic market
prices. The effect of considering a WTI market price for domestic
operations accounted for a P$16 million increase in costs.
Therefore, Resolution 85/03 only has financial effects. In line
with the strategy designed to maximize product contribution
margins implying the optimization of crude oil processed, crude
oil volumes processed increased to 32,165 bbl/d or 23.3% in 2003
quarter.

- Net sales increased to P$362 million or 29.3% in 2003 quarter,
boosted by a 40% increase in sales volumes.

Sales volumes in Argentina increased an average of 85%, with
increases of 133%, 200%, 127%, 26%, 40% and 47% for diesel oil,
heavy products, asphalts, gasolines, paraffins and by-products of
the reformer process, respectively.

The diesel oil domestic market recorded a 6.2% increase and the
company's market share rose to 5.1% in 2003 quarter from 3.8% in
2002 quarter. The gasoline domestic market shrank 2.7% in 2003
quarter due to increased consumption of substitute fuels such as
CNG, while the company's share increased to 3.1% in 2003 quarter
from 3% in 2002 quarter.

Since sales to the domestic market proved to be a better option,
export volumes declined an average of 18%, mainly due to lower
exports of diesel oil and heavy products, partially offset by
increased exports of paraffins and aromatics. Sales prices
dropped an average of 9%, 10% and 17% for diesel oil, heavy
products and asphalts, respectively.

- Administrative and selling expenses increased to P$15 million
or 25% in 2003 quarter mainly due to increased freight costs
related to the rise in sales volumes and higher fixed costs
associated with the increase in the number of gas stations. The
ratio of administrative and selling expenses to sales was 4.1% in
2003 quarter and 4.3% in 2002 quarter.

Petrochemicals

- Operating income for the petrochemical business segment
decreased to P$45 million or 25% in 2003 quarter, mainly due to
the impact of provisions for environmental remediation.

- Gross profit dropped to P$88 million or 4.3% in 2003 quarter.
Gross margin on sales decreased to 23.9% in 2003 quarter from
26.3% in 2002 quarter.

- In Argentina, styrenic sales did not record significant changes
and totaled P$128 million and P$129 million in 2003 and 2002
quarters, respectively. During 2003 quarter and boosted by the
demand recovery in Argentina, styrenic total sales increased to
29 thousand tons accounting for a 29.1% increase compared to
sales for 2002 quarter.

Styrene sales volumes increased 20% due to an 11% rise in
domestic sales, reflecting the Argentine market recovery and to a
36% increase in exports particularly to Chile evidencing the
consolidation of the Company's presence in such country's styrene
market.

Polystyrene sales volumes in the domestic market rose 26% mainly
due to the already mentioned demand recovery in Argentina.
Exports declined by 58%, mainly as a result of lower shipments to
Europe since it was more advantageous to export styrene to Europe
with profit margins higher than those that could have been
obtained through polystyrene exports. As regards bops (bi-
oriented polystyrene), total sales (in tons) grew 48%, as a
consequence of increased exports, mostly shipments to the USA.

Rubber sales volumes for 2003 quarter were similar to those
recorded in 2002 quarter. It is worth noting that domestic
volumes increased approximately 38%, mainly due to the domestic
market recovery to the detriment of the volumes of exports whose
margins are lower in comparative terms.

In 2003 quarter the business average sales prices were in line
with dollar-denominated international prices higher than prices
for 2002 quarter. In spite of that and due to the peso
appreciation, peso-denominated prices were lower. Fertilizers
sales rose to P$102 million or 20.1% in 2003 quarter, mainly as a
result of a 9% increase in sales volumes. This rise reflects the
strong recovery of the farming industry which boosted a greater
use of fertilizers and the business restructuring implemented to
expand sales areas.

Sales prices were in line with international prices higher than
prices for 2002 quarter. The average sales price, however,
increased 3% due to the effect of the adjustment for inflation
implemented in 2002 quarter, the peso appreciation and a greater
incidence of resale products with prices higher than the
company's own manufactured products.

Innova sales in Brazil rose to P$140 million or 2% in 2003
quarter, mainly due to higher sales prices. Total sales volumes
shrank 1%. Domestic market sales increased to 47 thousand tons in
2003 quarter from 46 thousand tons in 2002 quarter, mainly due to
a 12% decline in polystyrene domestic sales as a result of a drop
in the demand for polystyrene in Brazil, offset by a 13% increase
in styrene sales compared to 2002 quarter. In addition, export
sales declined 19% due to a lower product availability.

Though sales prices in 2003 quarter were in line with
international prices which rose 35% in terms of dollars compared
to 2002 quarter, the average price in terms of pesos climbed 2%
in 2003 mainly due to the adjustment for inflation applicable in
2002 quarter and, to a lesser extent, the peso appreciation.

- Administrative and selling expenses dropped 14.7% mainly as a
result of the impact of the peso appreciation on operations in
Brazil. The ratio of administrative and selling expenses to sales
was 7.9% in 2003 quarter and 9.7% in 2002 quarter.

- Other operating income (expense) recorded a P$14 million loss
in 2003 quarter compared to a P$2 million gain in 2002 quarter
mainly attributable to provisions for environmental remediation.

Electricity

Net sales of electricity generation increased to P$56 million or
37% in 2003 quarter, as a consequence of the combined effect of
increased electricity sales prices and higher sales volumes.

The increase in energy sales prices was mainly attributable to
the following:

- During the March/October 2003 period, collection of additional
energy income for guaranteed supply to the electricity market,
with higher sales (P$4 million) in the last quarter of 2003.

- Energy deliveries by less efficient machines at higher market
prices as a result of reduced gas supply during 2003 quarter as a
consequence of lower temperatures and increased gas consumption
by industries. This circumstance did not affect Genelba Power
Plant operations given its gas supply contract modality during
2003 fiscal year.

- An about 6% increase in market demand.

Net sales attributable to Genelba Power Plant in 2003 quarter
increased to P$49 million or 53.1%. The average price of energy
delivered increased to P$35.5 per MWh or 11.8% in 2003 quarter,
reflecting the above mentioned effects. In 2003 quarter energy
delivered increased to 1,374 GWh or 35.2% as a result of the
above mentioned increase in demand and Genelba's better
positioning as regards dispatch to the network vis-…-vis its
competitors. Genelba Power Plant availability factor was 93.1% in
2003 quarter and 98.1% in 2002 quarter, as a consequence of minor
maintenance works performed (scheduled every 4000 hours) in
compliance with the manufacturer's standards. No deficiencies
were identified.

Net sales attributable to Pichi Pic£n Leuf£ Hydroelectric Complex
totaled P$8 million in 2003 quarter. The average price of energy
delivered increased to P$31.7 per MWh in 2003 quarter from P$14.8
per MWh in 2002 quarter mainly due to additional compensation for
guaranteed supply to the market. Energy delivered by Pichi Pic£n
Leuf£ declined to 256 GWh or 52% in 2003 quarter due to the lower
levels of water supplying river basins.

- Gross profit for the generation business increased to P$18
million or 13% in 2003 quarter. Gross margin on sales was 32.1%
in 2003 quarter and 39% in 2002 quarter.

Outlook

- Significant investments will be made in the Oil and Gas
Exploration and Production business segment, particularly in
Argentina and Venezuela. In addition to the acquisition of
assets, exploration investments will increase as a vehicle for a
more aggressive growth. We will continue to evaluate our assets
with a view to consolidating the Company's portfolio in
businesses regarded as having the greatest potential and highest
profitability. As regards production, the year 2004 will be a
transition year on the path of growth and expansion.

- Concerning the Refining and Marketing business segment, a
scenario with high prices and margins for refined products is
foreseen for the international market throughout the year 2004.
In the domestic market, the economic upturn will have a positive
effect on the demand for products, particularly diesel oil.
Though this scenario is in principle favorable for the business,
there is concern about the domestic market outlook, particularly
due to the continued implementation by the
Government of mechanisms to avoid the passing through of higher
crude oil costs to fuel prices, and the prevailing inequality in
terms of fuel tax burden which artificially distorts the free
performance of the market. During 2004 the Company will continue
to implement its growth strategy in this segment though adjusting
the investment level to the evolution of certain aspects the
Company is concerned

- As regards the Petrochemical business, due to the urea high
international prices the fertilizer business will continue to add
significant value to the Company's natural gas in 2004.
Operations of the new tiosulphate plant located in Campana are
estimated to start in 2004. Considering the evolution of the
Argentine economy, the demand for styrene, polystyrene and rubber
is estimated to continue growing. In addition, in 2004
polystyrene consumption in Brazil is expected to reverse the 2003
drop and resume a growth trend. Due to the favorable evolution of
demand, in addition to good international prices and margins for
styrenic products, the good economic performance of this business
is estimated to continue. In such respect, the Company will make
investments in 2004 to increase ethylbenzene production in
Argentina and styrene production in Brazil by approximately 60
thousand tons/year.

- Concerning the natural gas and electricity segments, the
Argentine Government is expected to gradually restore the
economic-financial balance and resume compliance with the
respective regulatory frameworks under Law 24,076 and Law 24,065,
seeking to regain investors' confidence.

- As regards licensee companies, the goal is to bring companies
in line with the context prevailing after the deep economic
crisis. Two great challenges are envisioned: the renegotiation of
contracts with the Government and the companies' borrowing
policy, on which their long-term economic feasibility heavily
depends.

CONTACT:  Daniel E. Rennis
          drennis@petrobrasenergia.com

          Alberto Jankowski
          ajankows@petrobrasenergia.com
          Tel: (5411) 4344-6655

Web Site: www.petrobrasenergia.com


RALIMET: Bankruptcy's Credit Review Due to Terminate Today
----------------------------------------------------------
The credit verification period for the bankruptcy of Buenos Aires
company Ralimet S.A. ends today. The Company's receiver, Mr. Juan
Narbaitz, will prepare the individual reports on the verification
results, which will be used a basis for payments to be made after
the Company's assets are liquidated.

Buenos Aires Court No. 4 issued the bankruptcy order late last
year. Clerk No. 8 works with the court on the case, related the
Troubled Company Reporter - Latin America in an earlier report.

Local sources did not reveal the deadlines for the filing of the
individual and general reports to be prepared by the receiver.

CONTACT:  Juan Narbaitz
          Viamonte 1570
          Buenos Aires


SANCOR: $300M of Bonds Get `D' Rating From Moody's
--------------------------------------------------
Some US$300 million of corporate bonds issued by Sancor Scoop.
Unidas Ltda. were rated `D' by Moody's Latin America Calificadora
de Riesgo S.A. recently. The rating, which is issued to bonds
that are in payment default, was determined from the Company's
finances as of the end of September last year.

The Comision Nacional de Valores, Argentina's securities
regulator, described the affected bonds as "Titulos de Dueda de
Mediano Plazo". These are classified under "Program", with
undisclosed CUSIP and maturity date.


SANTORIO DEL SUR: Creditor Claims Verification Ends Today
---------------------------------------------------------
Creditors of Sanatorio del Sur Chaqueno S.R.L. must present their
claims to the Company's receiver as the deadline for
verifications expires today. The Company's receiver, Juan Carlos
Balbiano, will examine claims to determine the nature and amount
of the Company's debts.

Court No. 1 of the Civil and Commercial Tribunal of Villa Angela
in Chaco handles the Company's case, the Troubled Company
Reporter - Latin America said in an earlier report. Local
sources, however, did not mention whether the court has set the
deadlines for the filing of the receiver's reports.

CONTACT:  Sanatorio del Sur Chaqueo S.R.L.
          Balcarce 373
          Villa Angela, Chaco

          Juan Carlos Balbiano
          Parcela 35 mza 10 del Barrio Hipotecario
          Villa Angela, Chaco


SEMILLAGRO: Bankruptcy Process Advances With Reports
----------------------------------------------------
The bankruptcy of Semillagro S.A. proceeds with its receiver
preparing the individual reports. These reports will contain the
results of the credit verification process, which is due to end
today.

The Company's receiver, Mr. Jorge Angel Tsanis, is required to
submit the report at Buenos Aires Court No. 19 on March 25. The
receiver will also prepare a general report, to be filed on May
11, after the individual reports are processed at court.

The Troubled Company Reporter - Latin America earlier revealed
that the Company was undergoing the reorganization when the court
declared it officially bankrupt. Clerk No. 38 assists the court
on the case, which will close with the liquidation of the
Company's assets.

CONTACT:  Semillagro S.A.
          Holmberg 1599
          Buenos Aires


SUENO ESTELAR: Informative Assembly Slated for Today
----------------------------------------------------
The informative assembly for the reorganization of Buenos Aires
company Sueno Estelar S.A. will be held today. The meeting is one
of the last parts of a reorganization process.

Buenos Aires Court No. 22 and Clerk No. 43 handle the Company's
case, said the Troubled Company Reporter - Latin America in an
earlier report.


TEXTIL ARIES: General Report Filing Deadline Today
--------------------------------------------------
Today, February 12, 2004, is the deadline for the filing of the
general report for the bankruptcy of Buenos Aires-based Textil
Aries S.R.L., the Troubled Company Reporter - Latin America
reported earlier. The Company's receiver, Mr. Jorge Juan
Gerchkovich, prepared the report after the individual reports
were processed at court.

The individual reports contained the results of the credit
verification process completed last year. Verifications were done
to determine the nature and amount of the Company's debts.

Buenos Aires Court No. 17 issued the bankruptcy order, the TCR-LA
said earlier. Clerk No. 34 assists the court on the case. The
Company's assets will be liquidated at the end of the bankruptcy
process to reimburse its creditors.

CONTACT:  Jorge Juan Gerchkovich
          Lavalle 1882
          Buenos Aires


TGS: Ends 2003 With ARS286.2 Million Net Income
-----------------------------------------------
Transportadora de Gas del Sur S.A. ("TGS" or "the Company")
(NYSE: TGS, MERVAL:TGSU2) reported a net income of ARS42.7
million or ARS0.054 per share (ARS0.269 per ADS) for the fourth
quarter of 2003, as compared to a net loss of ARS21.0 million, or
ARS0.026 per share (ARS0.132) per ADS) for the same quarter of
2002. For the year ended December 31, 2003, TGS reported a
ARS286.2-million net income or ARS0.360 per share (ARS1.801 per
ADS). Net income for the fiscal year ended December 31, 2003
included the appreciation of the Peso versus the USD and its
impact on net financial expense and on deferred income tax,
introduced by a new set of accounting rules effective January 1,
2003. This net income offsets only partially the net loss of
ARS608.4) million or ARS0.766) per share (ARS3.829) per ADS)
reported for the 2002 fiscal year.

"Since the beginning of 2002 we have been facing really
challenging times. However, we have taken all the necessary
actions to preserve the continuity of the gas transportation
service, and consequently today we feel pleased with the
Company's performance in 2003, as we met most of our goals for
the year," said Eduardo Ojea Quintana, Chief Executive Officer of
TGS.

"Nonetheless, we are aware that we have two significant
challenges ahead in 2004: the restructuring of our financial debt
and the renegotiation with the Government of our regulatory
framework including tariff increases and adjustment mechanisms.
TGS is largely dependent on the result of these processes to
create long-term value for its stakeholders," Mr. Ojea Quintana
concluded.

Basis of Presentation of Financial information

Accounting for Inflation

Effective January 1, 2002, inflation accounting was reintroduced
as part of the Argentine GAAP and National Securities Commission
("CNV") rules in view of the resumption of significant inflation
in Argentina. However, on March 25, 2003, the Executive Branch,
through Decree Nø 664

1. All amounts included in this release are unaudited suspended
the inflation accounting methodology. Consequently, and according
to CNV rules, the Company's financial statements for the year
ended December 31, 2003, include the effects of inflation as of
February 28, 2003. Included for comparative purposes, amounts at
and for the year and fourth quarter ended December 31, 2002, have
been subsequently restated to constant Argentine pesos as of
February 28, 2003, according to Argentine GAAP.

Accounting for Devaluation

According to Resolutions No. 3/2002 and 87/03 (the last one
provides the suspension of the first one), issued by the
Argentine Accounting Profession, exchange losses arising from the
devaluation of the peso starting January 6, 2002, related to
foreign currency liabilities existing at such date, were added to
the cost basis of assets acquired or developed with that
financing until July 28, 2003. Similar alternative treatment is
permitted, but not required, for exchange losses arising from
indirect financing. Such capitalization was made applying the
alternative criteria, and accordingly exchange losses derived
from foreign currency-denominated liabilities, which originally
and indirectly financed the acquisition of Property, Plant and
Equipment were considered. To such end, the Company has assumed
that proceeds from such financing were applied in the first place
to working capital needs and assets not eligible for exchange
loss capitalization and the remainder was allocated to assets
eligible for such capitalization.

New Accounting Rules

Through the Resolution Nø 434/03, which CNV adopted effective
January 1, 2003, new accounting rules were defined, which
basically introduced among others: (i) changes to the valuation
criteria of long-lived assets and liabilities, (ii) specific
valuation and disclosure criteria for certain specific issues
such as leases and derivative financial instruments not addressed
by previous rules, and (iii) deferred income tax methodology,
which has the largest impact on TGS's financial statements.

Fourth Quarter 2003 vs. Fourth Quarter 2002

TGS posted fourth quarter 2003 total net revenue of ARS227.5
million, similar to the ARS227.8 million earned in the same
period of 2002.

Gas transportation revenue for the fourth quarter 2003 was
ARS106.5 million, a 3.2% increase over the fourth quarter 2002.
The increase was driven basically by higher revenue from
interruptible gas transportation services attributable to higher
demand for natural gas during the 2003 quarter, natural gas being
the cheapest fuel, as compared to other alternative fuels, as a
result of the lack of adjustment to its price since 2001.

Gas transportation service revenues are derived principally from
firm contracts, under which pipeline capacity is reserved and
paid for regardless of actual usage by the shipper. TGS also
provides interruptible transportation services subject to
available pipeline capacity. This segment is subject to
regulation by Ente Nacional Regulador del Gas ("ENARGAS"). Gas
transportation service is TGS's core business, representing
approximately 47% and 45% of the Company's total revenue for the
fourth quarter of 2003 and 2002, respectively. The share of this
segment of the Company's total revenue has significantly
decreased from its historical 80% until 2001. The decrease is a
direct result of the end of the convertibility monetary regime in
Argentina and ensuing "pesification" of regulated tariffs at an
exchange rate of US$ 1=ARS1, as well as the prohibition to apply
variations of local and international indexes, or any other type
of adjustment thereon, according to the Economic Emergency Law
passed by the Argentine Congress on January 6, 2002. Since that
time, the tariff renegotiation process has been delayed with no
significant progress so far.

Natural gas liquids ("NGL") production and commercialization
revenue for the fourth quarter 2003 were ARS108.5 million, a
15.7% increase over the fourth quarter 2002. Revenue from this
segment improved as a result of a 24% increase in the volumes
sold.

NGL production and commercialization revenue share accounted for
approximately 48% and 41% of the total revenue for the fourth
quarter of 2003 and 2002, respectively. NGL production and
commercialization consists of natural gas processing activities,
conducted at the Cerri Complex, located near the city of Bahia
Blanca and connected to each of TGS's main pipelines, where
ethane, propane, butane and natural gasoline are recovered. This
segment also includes the commercialization of NGL for the
Company's own account and on behalf of its clients.

Other services revenues for the fourth quarter 2003 were ARS12.5
million, compared to ARS30.8 million in the fourth quarter 2002.
The reduction of revenue was attributable to higher one-time
pipeline construction services rendered in the fourth quarter
2002. The fourth quarter of 2003 benefited from additional
revenue generated by new midstream agreements, entered into
during 2003.

Other services segment mainly includes midstream and
telecommunication activities and its revenue share in the
Company's total revenue accounted for approximately 5% and 14%
for the fourth quarter of 2003 and 2002, respectively. Midstream
activities consist of gas treatment, separation, and removal of
impurities from the natural gas stream and gas compression,
rendered at wellhead, typically to gas producers. In addition,
TGS provides services related to pipeline and compression plant
construction and related operation and maintenance services.
Telecommunication services are rendered through Telcosur S.A., a
company controlled by TGS. Telcosur S.A. provides services as an
independent carrier of carriers to leading telecommunication
operators and corporate customers located in its service area.

Costs of sales and administrative and selling expenses were
ARS113.2 million, a 11.7% reduction compared to the fourth
quarter 2002. The decline is basically attributable to higher
one-time costs associated with pipeline construction services in
the fourth quarter 2002, as well as to lower direct costs
associated with the NGL production and commercialization segment
in the 2003 quarter compared to the same quarter of 2002, when
the Company renegotiated with its main suppliers the terms of the
related agreements. The mentioned effects were partially
compensated by higher depreciation expense reported for the
fourth quarter 2003.

For the fourth quarter 2003, the Company reported net financial
expense amounting to ARS60.1 million compared to ARS118.0 million
in the corresponding 2002 quarter. The consequent ARS57.9 million
decrease is attributable to lower foreign exchange loss
capitalization in the fourth 2002 and also to a decrease of
interest expense denominated in pesos, as a result of a lower
average exchange rate during the fourth quarter 2003 as compared
to the same quarter of 2002.

For the fourth quarter 2003, TGS reported a ARS10.3 million
expense as deferred income tax fundamentally driven by the charge
corresponding to the deferral of the foreign exchange loss, as
provided by the Economic Emergency law and Decree Nø 2,568/02.
The loss reported for the fourth quarter 2003 compares to a
ARS1.4 million gain for the same quarter of 2002, reflecting a
decline in the deferred tax liability generated by a reduction in
the capitalization of the foreign exchange loss, partially
compensated by an increase in the reserve for the tax loss carry
forward.

Year Ended December 31, 2003 versus Year Ended December 31, 2002

TGS posted in the year ended December 31, 2003 total net revenue
of ARS892.8 million, a 5% decline compared to the ARS939.5
million earned in the year ended December 31 2002. The decrease
is attributable to lower gas transportation and other services
revenue in the year 2003, partially compensated by increased
revenues in the NGL production and commercialization segment.

Gas transportation revenue for year ended December 31, 2003 was
ARS422.1, a 20.7% decline compared to ARS532.1 million earned in
the year ended December 31, 2002. The decline reflects the
combined effect of the restatement for effects of inflation of
the 2002 amounts and the lack of adjustment to regulated tariffs,
as mentioned in the quarter-to-quarter comparison. Both effects
were partially mitigated by increased interruptible
transportation services during 2003, resulting from larger demand
for natural gas.

The NGL production and commercialization revenue for the year
ended December 31, 2003 was ARS428.4 million, a 23.3% increase
over the previous year. The rise was attributable to high prices
for exports, which impacted also on the domestic market; the
effect of the renegotiation of some marketing and processing NGL
agreements and a 4% increase in the volumes sold. These effects
were partially compensated by the restatement for the effects of
inflation of 2002 amounts.

Other services revenue for the year ended December 31, 2003 was
ARS42.3 million, a 29.5% decline compared to the previous year.
The decrease was the result of both higher one -time construction
services rendered during 2002 and of the restatement for
inflation of 2002 amounts. Nonetheless, the year ended December
31, 2003, benefited from the effect of midstream and
telecommunication tariffs renegotiation and additional midstream
services started in 2003.

Costs of sales expenses for the year ended December 31, 2003 were
ARS427.3, a 2% decline compared to ARS435.7 reported for the
previous year. The decline resulted from a lower depreciation and
amortization expense driven by a lower exchange loss
capitalization, as a consequence of a lower exchange rate from
December 31, 2002, to July 28, 2003; the last permitted date to
apply the capitalization criteria. This effect was somewhat
compensated by the increase of direct costs associated to the NGL
production and commercialization activities and the restatement
for the effects of inflation of the 2002 amounts.

Administrative and selling expenses for the year ended December
31, 2003, were ARS58.6 million, a 13.7% reduction as compared to
the previous year. The decrease is a result of the restatement
for the effects of inflation of the 2002 amounts, as well as
lower depreciation expenses and the creation of a reserve for bad
debts accounts in 2002.

Net financial expense declined significantly from ARS1.071,4
million reported for the year ended December 31, 2002, to
ARS219.8 million reported for 2003. This decrease is the result
of the large devaluation effect in the fiscal year 2002 (which
went up from US$ 1= ARS1 to US$1= ARS3.37 at the end of 2002),
partially mitigated by the capitalized portion of exchange loss
in Property, Plant and Equipment, Net, and the accounting for the
effects of inflation. In addition, interest expense decreased in
2003 as a consequence of a lower average foreign exchange rate in
2003 compared to 2002.

Equity in earnings for the year ended December 31, 2003, reported
a ARS4 million gain which compared to a ARS4.6 million loss
reported for 2002. The increase is a consequence of higher net
income obtained by the holding of the investment in Gas Link S.A.

TGS reported ARS26.4 million in Other Expenses for the year ended
December 31, 2003, a ARS20.3 million raise compared to 2002. The
increase includes the creation of an allowance for an adverse
result according to a resolution from the Argentine Supreme
Court, in a litigation in which TGS was a part, against Gas del
Estado S.E. (a company under liquidation process) in respect to
transferred assets upon the privatization of such company.

For the year ended December 31, 2003, the Company reported a
ARS121.5 million gain as deferred income tax, due basically to
the decline in the deferred tax liability generated by a lower
exchange loss capitalization for book purposes. This amount
compares to a ARS37.8 million gain reported for 2002 resulting
from the recognition of a net tax loss carry-forward and the
deferral over a five-year period of the foreign exchange loss tax
deduction. These effects were partially mitigated by an increase
in the deferred tax liability associated with the capitalization
of exchange loss in Property, Plant and Equipment, Net. It is
important to remark that, as a result of the significant exchange
loss reported in 2002, the Company maintains a tax loss carry
forward and consequently has no income tax obligation until the
consumption of such tax loss carry forward.

Liquidity and Capital Resources

Cash flow from operations for year ended December 31, 2003,
amounted to ARS527.6 million, which together with the cash
generated by financing activities amounting to ARS2.0 million
were applied in the following way: (i) ARS61.5 million to both
capital expenditures and capital injections in affiliates, and
(ii) ARS468.1 million to increase the Company's cash position,
considering that TGS has postponed principal and interest
payments in respect to its financial indebtedness. For detailed
information on the Company's cash flow refer to Exhibit IV.
Currently, TGS relies on cash generation from operations as its
primary source to finance its operations. As announced on May 14,
2003, upon the withdrawal of its debt restructuring proposal, the
Company decided to postpone interest and principal payment due
under its debt agreements. TGS continues to maintain
conversations with its main creditors with the goal of reaching
an agreement and overcoming the present financial situation.

TGS, with a current delivery capacity of approximately 62.5
MMm3/d or 2.2 Bcf/d is Argentina's leading transporter of natural
gas. The Company is also Argentina's leading processor of natural
gas and one of the largest marketers of natural gas liquids. TGS
is quoted on both the New York and Buenos Aires stock exchanges
under the ticker symbols TGS and TGSU2, respectively. TGS's
controlling shareholder is Compania de Inversiones de Energia
S.A. ("CIESA"), which together with Petrobras Energia and Enron
Corp. subsidiaries, hold approximately 70% of the Company's
common stock. CIESA is currently owned 50% by Petrobras Energia
S.A. and a subsidiary, and 50% by subsidiaries of Enron Corp.

To view financial statements and Exhibits:
http://bankrupt.com/misc/TGS.pdf

CONTACTS:  in Buenos Aires
           Investor Relations:
           Eduardo Pawluszek, Finance & Investor Relations
Manager
           Gonzalo Castro Olivera, Investor Relations
           Email: gonzalo_olivera@tgs.com.ar

           Maria Victoria Quade, Investor Relations
           Email: victoria_quade@tgs.com.ar
           Tel: (54-11) 4865-9077
           Media Relation
           Rafael Rodriguez Roda
           Tel: (54-11) 4865-9050 ext. 1238

           in New York
           Mariana Crespo, Associate Director
           Email: mcrespo@hfgcg.com
           Tel: (646) 284-9407



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

AES CORP.: Prices $500M Unsecured Senior Notes for Sale
-------------------------------------------------------
The AES Corporation (NYSE:AES) announced Tuesday that it had
priced an offering of $500 million of unsecured senior notes. The
notes mature on March 1, 2014 and are callable at the Company's
option at any time at a redemption price equal to 100% of the
principal amount of the notes plus a "make-whole" premium. The
notes will be issued at a price of 98.288% and pay interest semi-
annually at an annual coupon rate of 7.75%.

AES plans to use the net proceeds of the offering to repay $500
million of the term loan under its senior secured credit
facilities which mature on July 31, 2007 (subject to a possible
extension to April 30, 2008 if certain conditions are met) and
bear interest at a floating rate of either LIBOR plus 4% or a
base rate plus 3%.

The offering will be made under AES's effective shelf
registration statement which has been filed with, and declared
effective by, the Securities and Exchange Commission.

This press release shall not constitute an offer to sell or a
solicitation of an offer to buy the securities described herein,
nor shall there by any sale of these securities in any
jurisdiction in which such an offer, solicitation or sale would
be unlawful.

CONTACT:  AES CORPORATION
          Scott Cunningham, 703-558-4875


AHOLD: Likely to Close Sale With Wal-Mart Soon
----------------------------------------------
Dutch retailer Ahold Holding NV is about to close the sale of its
Brazilian assets to Wal-Mart Stores Inc.  Nevertheless, sources
close to the deal informed that it is not yet clear whether the
US retail giant will acquire all of Ahold's assets in Brazil or
just one of them. The final announcement is expected to take
place within the next weeks, while the parties agree on the final
price and review the contracts with suppliers and service
companies, the sources added.

Ahold is also negotiating the sale of its credit card operations
in Brazil to a local bank. The Company expects to collect up to
US$500 million from the sales of its local operations to help it
cancel EUR11 billion in debt.

Ahold is in talks with Wal-Mart to sell it Bompreco and most of
G. Barbosa - third and eight most-important supermarket chains in
Brazil, respectively. But legal restrictions may force Ahold to
sell only Bompreco to the US retailer.

The Administrative Council of Economic Defense, or Cade, told
Ahold in December that it could sell both of its Brazilian chains
together provided that it found another purchaser for 16 of G.
Barbosas supermarkets. However, Ahold has been unable to find a
purchaser for these stores.

It is believed that Ahold may decide to sell G. Barbosa as a
whole in order to find a purchaser more easily.

If Ahold finds one or several purchasers for the 16 stores, Wal-
Mart will get what it wants, Bompreco and part of G. Barbosa,
said a source familiar with the deal. But it is difficult to find
this purchaser, since the group will not have the necessary scale
to compete with Wal-Mart if it acquires part of G. Barbosa and
Bompreco together.


BANCO BRADESCO: BEM Buy Won't Affect Ratings According to S&P
-------------------------------------------------------------
Standard & Poor's Ratings Services announced on Tuesday that
Banco Bradesco S.A.'s (BBpi) acquisition of 89.96% of the total
shares of Banco do Estado do Maranhaoo S.A (BEM) will not affect
the credit rating assigned to Banco Bradesco. BEM, with total
assets of Brazilian reais (BrR) 766.6 million and capital of
BrR37.7 million as of September 2003, was acquired for BrR78
million-close to the minimum price of BrR77.2 million. The
acquisition will increase Banco Bradesco's presence in the
Maranhao state as the second-largest bank in terms of branches -
increasing its market share in the state to approximately 41%
from 11% as of December 2003, given BEM's 76 branches. It also
reinforces Banco Bradesco's position as the largest private bank
in Brazil with BRr176.1 billion of total assets as of December
2003.

ANALYST:  Tamara Berenholc
          Sao Paulo
          Phone: (55) 11-5501-8950

          Daniel Araujo
          Sao Paulo
          Phone: (55) 11-5501-8939


ELETROPAULO METROPOLITANA: Positive Results Won't Affect Ratings
----------------------------------------------------------------
Standard & Poor's Rating Services said Tuesday that the net
result turnaround posted by Eletropaulo Metropolitana
Eletricidade de SAœo Paulo S.A. (Eletropaulo; D/--/--) in fiscal
2003 (BrR86 million), as opposed to the net loss in 2002
(negative BrR871 million), does not affect the ratings on the
company. Although Eletropaulo achieved an EBITDA of roughly
BrR1.16 billion in fiscal 2003 and a funds-from-operation-to-
interest coverage of 1.78x in the period, the company is in
default in some obligations and is continuing its debt
restructuring process with creditors. The company's debt
restructuring negotiations have been concentrated in refinancing
upcoming maturities with amortizing loans, and converting dollar-
linked debt into local currency transactions. The turnaround in
Eletropaulo's income statement is linked to non-cash results on
its foreign currency debts, rather than a material improvement in
the company's operations. Any enhancement in Eletropaulo's
ratings is first and foremost dependent on the conclusion of its
current debt restructuring to allow an evaluation of the
company's new debt structure and amortization schedule.

ANALYST:  Marcelo Costa
          Sao Paulo
          Phone: (55) 11-5501-8955


PARMALAT FIDC: S&P Withdraws Ratings on FIDC After Liquidation
--------------------------------------------------------------
Standard & Poor's Ratings Services withdrew Tuesday its 'brAAAf'
Brazilian national scale fund rating on the senior shares of the
credit receivable fund Parmalat - Fundo de Investimento em
Direitos Creditorios (the Parmalat FIDC). The withdrawal follows
the shareholders' meeting on Feb. 9, 2004, during which the
Parmalat FIDC's shareholders decided to redeem all their
outstanding shares in their entirety (a formal liquidation of the
fund).

During a previous shareholders' meeting on Jan. 19, 2004, the
Parmalat FIDC's shareholders voted for an early redemption of
their senior shares. On the same day, these investors received
their original invested amount plus the respective targeted
return on their investment (the Brazilian Spot Depositos
Interfinanceiros index plus 1.7%). Nevertheless, the fund's
sponsor, Intrag DTVM, and the servicer of the fund, Banco Itau
S.A., decided to maintain the legal structure of the fund by
having Banco Itau retain a symbolic senior share. On Feb. 9,
2004, both the senior and the subordinated shareholders decided
to redeem the total remainder of the fund's shares, and Banco
Itau received its original invested amount plus the respective
targeted return. The subordinated shareholder, Parmalat Brasil
S.A., will receive all of the Parmalat FIDC's remaining funds by
Feb. 13, 2004.

The Parmalat FIDC was a closed-ended fund whose main underlying
assets originally consisted of trade receivables directly
originated by Parmalat Brasil and Batavia S.A. (through the sale
of shipped products to specified obligors), cash, and other
specified investments. Senior shares of the fund originally
totaled Brazilian reais (BrR) 110.5 million and were sold to
investors Nov. 27, 2003, while the subordinated shares
(originally BrR19.5 million) were retained by the originators.
The fund had an original defined final maturity of three years
from Nov. 27, 2003.

ANALYST:  Juan Pablo De Mollein
          New York
          Phone: (1) 212-438-2536

          Sergio Garibian
          Sao Paulo
          Phone: (55) 11-5501-8944


TELEMAR: Increases Fixed to Mobile Service Rates
------------------------------------------------
Tele Norte Leste Participa‡oes S.A (NYSE:TNE) announced Monday
that the Brazilian Telecommunications Regulatory Agency - Anatel
- approved on February 06, 2004, new cap rates to be charged by
Telemar on fixed to mobile calls, as well as the interconnection
rates charged by mobile operators to Telemar for such calls.

The increase in fixed to mobile rates was 6.99%, based on the 12-
month IGP-DI index from January to December 2003 (7.67%), less a
productivity factor agreed upon with Anatel.

The average increase in mobile interconnection charges for
Telemar's region reached 7.18%. The increase in fixed to mobile
rates will take effect on February 12, 2004.

The new rates for the fixed to mobile service are available at:
http://www.telemar.com.br/docs/tarifafixomovel2004_eng.pdf

CONTACT:  TNE - INVESTOR RELATIONS
          Roberto Terziani
          Email: terziani@telemar.com.br
          Tel: 55 21 3131 1208
          Fax: 55 21 3131 1155

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

          GLOBAL CONSULTING GROUP
          Kevin Kirkeby
          Email: kkirkeby@hfgcg.com
          Tel.: 1 646 284 9416
          Fax: 1 646 284-9494

          Mariana Crespo
          Email: mcrespo@hfgcg.com
          Tel.: 1 646 284 9416
          Fax: 1 646 284-9494


VARIG/TAM: Postpone Merger Plans Indefinitely
---------------------------------------------
Brazil's two biggest airlines, Varig and TAM, have postponed
merger plans indefinitely, the Associated Press WorldStream
reports, citing the airlines' consultant, Luciano Coutinho.

Instead, the country's top air carriers will create an
"association" that will manage the companies' existing code-
sharing agreement. The so-called "association" may pave the way
for an eventual merger between the airlines, Coutinho said
without offering any details on how that might happen.

The consultant said a merger "is a process that can't be done in
weeks or months; it's a process that would take at least two
years."

"We would like this process to take place in an environment of
low risk," he added, referring to heavy debts affecting both
companies.



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

COEUR D'ALENE: Acquires Tanzania Property
-----------------------------------------
Coeur d'Alene Mines Corporation (NYSE: CDE), the world's largest
primary silver producer and a growing gold producer, announced
Tuesday it has acquired ten mineral properties in Tanzania with
plans to begin early stage exploration activities in the second
quarter of 2004. The Ministry of Energy and Minerals of Tanzania
granted the properties under ten prospecting licenses valid for a
period of three years with options to renew.

"Coeur is excited to establish a presence in Tanzania, which has
been the major focus of Africa's gold exploration over the past
five years," said Dennis E. Wheeler, Chairman and Chief Executive
Officer. "A number of international gold companies already have
successful operations there, and we believe this provides Coeur
excellent opportunity to add to our future production and
reserves profile. The licenses awarded to Coeur are in highly
prospective areas that have been largely unexplored, with good
potential for gold and silver."

The ten licenses awarded to Coeur cover 315 square miles (815
square kilometers) in northwestern Tanzania, near Lake Victoria,
in an emerging gold mining region where several international
mining companies have established mining and exploration
projects.

Coeur d'Alene Mines Corporation is the world's largest primary
silver producer, as well as a significant, low-cost producer of
gold. The Company has mining interests in Nevada, Idaho, Alaska,
Argentina, Chile and Bolivia.

CONTACT:  Tony Ebersole
          Phone: 800-523-1535
                 208-665-0335
          Email: tebersole@coeur.com



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

AVIANCA: Court Grants Extension to Present Restructuring Plan
-------------------------------------------------------------
A U.S. bankruptcy judge decided Tuesday to give struggling
Colombian airline Avianca S.A. at least one more month to come up
with its own rescue plan, reports Reuters. The airline originally
had until Jan. 30 to present the plan. Last month, however, it
formally sought approval from judge Allan Gropper to extend the
deadline to March 30.

Avianca's creditors had objected to the request, but Gropper
postponed a hearing on the application until March 8 after
private discussions at his New York chambers.

"We expect to show significant progress by March 8," Avianca
attorney Ronald Barab said of negotiations with potential
investors.

U.S. bankruptcy law automatically gives a company that files for
Chapter 11 protection four months to submit a reorganization plan
for approval by creditors and the court, but a judge may extend
the period. Once the deadline has expired, creditors may submit
their own plan.

Avianca has a U.S. subsidiary, which allowed it to seek Chapter
11 proceedings last March to try to renegotiate at least US$269
million in debt while continuing to operate. U.S. law is more
generous with debtor companies than Colombian legislation.

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



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

CONE MILLS: Court Approves Sale to WL Ross & Co.
------------------------------------------------
Cone Mills Corporation announced Tuesday that the U.S. Bankruptcy
Court has approved the sale of substantially all of the company's
assets to WL Ross & Co. The WL Ross & Co. offer was the highest
and best received during an extended bidding process that was
conducted in accordance with Section 363 of Chapter 11 of the
U.S. Bankruptcy Code.

According to the WL Ross & Co. offer announced on October 22,
2003, WL Ross & Co. agreed to purchase substantially all Cone
Mills' assets for $46 million in cash and the assumption of the
company's outstanding Debtor-in- Possession loans and selected
other liabilities, for a total purchase price valued in excess of
$90 million. A closing date for the proposed sale has yet to be
announced.

John L. Bakane, Chief Executive Officer of Cone Mills, said,
"After an exhaustive review of options and an open bidding
process, we are pleased that the court has approved the sale of
Cone Mills to WL Ross & Co. Given the enormous challenges our
company has faced from the devastating impact of low-cost
imports, we firmly believe that the sale to WL Ross & Co. is the
best solution for our employees, customers and communities going
forward."

Bakane added, "We have been successful in stabilizing our
business during the Chapter 11 process, and look forward to
working with WL Ross & Co. on a smooth transition to new
ownership. Most of all, we are extremely pleased to now be able
to focus all of our efforts on ensuring a stronger future for
Cone Mills."

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. http://www.cone.com


TV AZTECA: Discloses 'Chiapas Jaguares' Transmission Rights
-----------------------------------------------------------
TV Azteca, S.A. de C.V. (NYSE: TZA) (BMV: TVAZTCA), one of the
two largest producers of Spanish- language television programming
in the world, announced Tuesday exclusive transmission rights for
the First Division soccer team Chiapas Jaguares.

The franchise will allow TV Azteca and its subsidiary for the US
market, Azteca America, to increase its soccer transmission by
18% from 71 to 84 regular season games for the current
tournament. With the addition of the Jaguares, TV Azteca has
transmission rights for nine of Mexico's 20 First Division soccer
teams.

TV Azteca signed an exclusive contract for transmission in Mexico
and foreign markets, including but not limited to the US through
Azteca America, of the Jaguares' home games, which are
traditionally played in the Chiapas capital city of Tuxtla
Gutierrez.

With four games into the 2004 "Clausura" season, the Jaguares are
currently in first place overall in league standings with three
wins, one loss, and a total of eight goals.

Under the terms of the signed contract, the Jaguares are barred
under any conditions to contract third-party television
transmission services inside or outside of Mexico.

Company Profile

TV Azteca is one of the two largest producers of Spanish-language
television programming in the world, operating two national
television networks in Mexico, Azteca 13 and Azteca 7, through
more than 300 owned and operated stations across the country. TV
Azteca affiliates include Azteca America Network, a new broadcast
television network focused on the rapidly growing US Hispanic
market; and Todito.com, an Internet portal for North American
Spanish speakers.



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

CENTENNIAL COMMUNICATIONS: Completes Refinancing Transactions
-------------------------------------------------------------
Centennial Communications Corp. (NASDAQ: CYCL) ("Centennial")
announced Monday that it has consummated its previously announced
refinancing transactions consisting of a new $750 million senior
secured credit facility and a private placement of $325 million
of 8 1/8% Senior Notes due 2014. The new senior secured credit
facility is comprised of a $600 million, seven-year term loan
maturing in 2011 and a $150 million, six-year revolving credit
facility maturing in 2010.

Under the terms of the new senior secured credit facility, term
and revolving loan borrowings will bear interest at LIBOR plus
2.75% and LIBOR plus 3.25%, respectively. The new financings
extend the weighted average maturities of the Company's long-term
debt by over two years and eliminate approximately $600 million
in scheduled amortization payments over the next four years. As a
result of these transactions, the Company's weighted average
total cost of debt will decrease to approximately 7.75%.

Term loan borrowings under the new senior secured credit
facility, together with proceeds of the senior notes, were used
to:

- refinance and replace the Company's existing senior secured
credit facilities;

- repurchase all of the Company's outstanding unsecured
subordinated notes due 2009 which were accruing paid-in-kind
interest at a rate of 13.0%;

- repurchase and/or redeem $70 million aggregate principal amount
of the Company's outstanding $370 million 10.75% senior
subordinated notes due 2008. A portion of these repurchases
and/or redemptions may occur over the next 45 days; and

- pay related fees and expenses.

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

About Centennial

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

CONTACT: CENTENNIAL COMMUNICATIONS CORP.
         Eric S. Weinstein, 732-556-2220



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

CANTV: Standard & Poor's Upgrades Ratings to 'CCC'
--------------------------------------------------
Standard & Poor's Ratings Services raised its foreign-currency
corporate credit rating on Venezuelan full service
telecommunications company Compania Anonima Nacional Telofonos de
Venezuela (CANTV) to 'CCC' from 'SD'. In addition, CANTV's senior
unsecured debt rating was raised to 'CCC' from 'D'.

At the same time, Standard & Poor's raised the rating assigned to
CANTV Finance Ltd.'s US $100 million notes (which have the
unconditional and irrevocable guarantee of CANTV) to 'CCC' from
'D'. The outlook on CANTV is stable.

"These rating actions come after confirmation of the payment at
maturity of CANTV Finance Ltd.'s US$100 million 9.25% notes,"
said Standard & Poor's credit analyst Manuel Guerena.

CANTV is Venezuela's telecommunication incumbent. As of Sept. 30,
2003, it had approximately 2.7 million wired access lines in
service, 2.5 million wireless users, and 1 million Internet
subscribers.

CANTV had US$138 million in debt outstanding at Sept. 30, 2003,
without considering the $100 million notes due and paid last
week.

ANALYST:  Manuel Guerena
          Mexico City
          Phone: (52) 55-5081-4411




               ***********


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

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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