TCRLA_Public/040303.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                    L A T I N   A M E R I C A

           Wednesday, March 3, 2004, Vol. 5, Issue 44



BAK PLASTIC: Files for "Concurso Preventivo"
CONSULTORES INTEGRALES: Receiver Ends Credit Verification
CP DE DIAGNOSTICO: Receiver's General Report Due Today
EBD: Deadline for Proofs of Claim March 31
EMED: Court Sets Informative Assembly September 8

LA CUPLA: Credit Verification Process Ends March 18
LAS BAYAS: Creditors Have Until April 29 to File Claims
METROGAS: Creditor Files Involuntary Bankruptcy Petition
SANCAYET: Receiver Ordered to Submit General Report April 5
SCP/CGC: Court Terminates Bankruptcy Procedure

SINDUS: Court Okays Reorganization Petition
TRAVELCLUB: Credit Verification Process Ends
WULI: Credit Verification Reports Due April 14


GLOBAL CROSSING: Tells FCC Legacy Charge Not Applicable to VoIP
GLOBAL CROSSING: Completes Global FCO Network Project
LORAL SPACE: Unit Launches Occasional-use Service on Telstar 10


AHOLD: Sells Bompreco to Wal-Mart, Hipercard to Unibanco
CFLCL: Posts Investor Relations Monthly Report
TCP: Notice of Regular, Special Meetings of Shareholders
TELEMAR: Starts Commercial Service of Velox Wi-Fi

* IMF Managing Director Hails Reforms, Macroeconomic Policies


AES GENER: Fitch Assigns Prelim 'BB' Rating to Proposed Bond
AES GENER: Parent Settles $298 Million Mercantile Account
PARMALAT CHILE: Solari Wants Speedy Acquisition


PETROECUADOR: President Orders Immediate Reorganization


CFE: Ex-Im Bank Opens $60 Million Credit Facility
CINTRA: Books MXN250 Million Full-year Net Loss
INDUSTRIAS PENOLES: Reports Bigger 2003 Net Loss
SANLUIS CORPORACION: Fourth Quarter Sales Up 15%
TFM: Violates Covenants on $195 Million Bank Loans


PAN AMERICAN: Urges Holders to Convert Debentures Early


PDVSA: Denies Signing 'Formal' Agreement with NB Power

                        - - - - - - - - -


BAK PLASTIC: Files for "Concurso Preventivo"
Buenas Aires-based Bak Plastic Italo Argentina S.R.L. seeks
court permission to undergo reorganization.  The case is pending
before Court No. 4, with Clerk No. 8 assisting.

CONTACT:  Bak Plastic Italo Argentina S.R.L.
          Bragado 4955
          Buenos Aires

CONSULTORES INTEGRALES: Receiver Ends Credit Verification
Mr. Omar Sergio Luis Vazquez, receiver for Consultores
Integrales De Gestion Empresaria S.A., will close the credit
verification process today.  He will then prepare the individual
reports for action by Buenos Aires' Court No. 13, which is
handling the company's bankruptcy procedure.

CONTACT:  Omar Sergio Luis Vazquez
          Ave Santa Fe 1127
          Buenos Aires

CP DE DIAGNOSTICO: Receiver's General Report Due Today
The general report on the bankruptcy of Clinica Privada de
Diagnostico las Flores S.A. must be submitted to the province's
Court No. 14 today.  Company receiver, Mr. Julio Benjamin
Alvarez, is expected to submit a summary of the individual
reports on the credit verification results.

CONTACT:  Clinica Privada de Diagnostico las Flores S.A.
          Las Flores 455
          Wilde, Lomas de Zamora

          Julio Benjamin Alvarez
          Espana 266
          Banfiled, Lomas de Zamora

EBD: Deadline for Proofs of Claim March 31
Buenos Aires Court No. 3 declared local company EBD S.A.
bankrupt, according to local news source Infobae. The court
ordered company receiver, Mr. Luis Ricardo Kralj, to examine and
authenticate creditors' claims until March 31.

The receiver's duties include the preparation of the individual
and general reports due on May 17 and June 29, respectively. The
company's assets will be liquidated at the end of this process.

CONTACT:  Luis Ricardo Kralj
          Bouchard 468
          Buenos Aires

EMED: Court Sets Informative Assembly September 8
The credit verification process for EMED Emergiencias Medicas
S.R.L. ends today.  Company receiver, Mr. Jose Ignacio Lluna, is
now expected to submit to Necochea Court No. 1 the individual
reports on the results of the verifications.  Thereafter, the
court will order him to consolidate these reports in a single
document in preparation for the informative assembly, which has
been slated for September 8.  This assembly is one of the last
parts of the reorganization process.

CONTACT:  E.M.E.D. Emergencias Medicas S.R.L.
          Calle 69 No. 836

          Jose Ignacio Lluna
          Calle 56 Nro. 2863

LA CUPLA: Credit Verification Process Ends March 18
Creditors of Argentine company La Cupla S.R.L. must file their
proofs of claim before March 18. Company receiver, Mr. Leonardo
Andres Mancebo, is required by La Plata Court No. 3 to submit
the individual reports on the results of the verification on May
3; and the general report -- a summary of the individual reports
-- on June 3.  The informative assembly will take place on
August 24.

CONTACT:  La Cupla S.R.L.
          Ruta Nacional 3km 58.800
          Canuelas, La Plata

          Leonardo Andres Mancebo
          Calle 35 No. 824
          La Plata

LAS BAYAS: Creditors Have Until April 29 to File Claims
Insolvency Judge Dieuzeide of Buenos Aires Court No. 1 declared
local company Las Bayas S.A. bankrupt. Argentine newspaper La
Nacion said the court appointed Ms. Lydia Albite as company
receiver.  Creditors are required to file their claims before
April 29. The receiver will examine and authenticate proofs of
claims to determine the nature and amount of the company's

CONTACT:  Las Bayas S.A.
          Jose Cubas 3141
          Buenos Aires

          Lydia Albite
          Tacuari 119
          Buenos Aires

METROGAS: Creditor Files Involuntary Bankruptcy Petition
Chameris Investment S.A. has lodged an involuntary bankruptcy
case against Argentine natural gas distributor, Metrogas S.A.,
for defaulting on a EUR322,125 obligation.

In a disclosure to the Buenos Aires stock exchange Thursday,
Metrogas said the petition is pending before commercial court
no. 26, secretariat 51.  Metrogas, which stopped payments on all
its debt in March 2002, launched an offer on November 7 to
restructure US$440 million in debt.  The offer expires on March
9.  Metrogras is offering to buy back its debt at 50% of face
value up to US$100 million. Creditors can also choose an option
where capitalized interest is added to the principal and paid
over a period of nine years.  Under this option, the modified
debt will pay 3% interest for the first two years, 4% for the
following two years, 5% for the next two years and 6% for the
remaining period.

          Gregorio Araoz de Lamadrid 1360
          Buenos Aires
          CPA C 1267
          Phone: +54 11 4309 1010
          Fax:  +54 11 4309 1025
          Home Page;
          William Harvey Alvarez, President

SANCAYET: Receiver Ordered to Submit General Report April 5
Sancayet S.A.'s reorganization process moves on with receiver,
Mr. Ernesto Carlos Borzone, now required to prepare the
individual reports of the credit verification process, which
ends today.  Buenos Aires Court No. 24 expects the general
report, consolidating the individual reports, on April 5.

CONTACT:  Sancayet S.A.
          Uruguay 385
          Buenos Aires

          Ernesto Carlos Borzone
          Cuenca 1464
          Buenos Aires

SCP/CGC: Court Terminates Bankruptcy Procedure
Argentine oil and entertainment company Sociedad Comercial del
Plata S.A. (SCP) revealed that the Company and its former
subsidiary, Compania General de Combustibles (CGC), have
concluded their bankruptcy proceedings.

In a letter to the Buenos Aires Stock Exchange Monday, SCP said
the commercial court judge handling their formal restructuring
proceedings has approved their debt agreements and the
subsequent ending of their restructuring proceedings.  SCP,
according to Dow Jones, defaulted on about $780 million of debt
in May 1999 and filed for bankruptcy a year later. The legal
approval of the bankruptcy proceedings includes a green light
for SCP's debt restructuring proposal, which was modified in
early September 2003 and approved by creditors one month later.
Its main creditors are a pool of banks conformed by Citibank,
Societe Generale, Sudameris and BNL among others.

In June 2003, SCP retained a 19% stake in Compania General de
Combustibles, its main holding, and ceded the controlling stake
to Southern Cross Corp., a Connecticut-based firm. That sale
left SCP with only a few entertainment assets, including tourist
train operator Tren de la Costa. That subsidiary received legal
approval for its debt restructuring in September 2003, ending
its own bankruptcy proceedings.

Court No. 6 of the Civil and Commercial Tribunal of San Miguel
de Tucuman in Argentina ordered the receiver of Sema de
Resposabilidad Limitada S.R.L. to file the general report today.

This general report is just the summary of the individual
reports earlier submitted to the court for action.  The
Company's assets face liquidation at the end of the bankruptcy

SINDUS: Court Okays Reorganization Petition
Court No. 8 of the Civil and Commercial Tribunal of Lomas de
Zamora in Argentina approved Sindus S.R.L.'s petition to undergo
reorganization. Receiver, Ms. Analia Virginia Dominguez, will
verify creditors' claims until March 3, according to Infobae.

The individual reports on the verification results are due on
April 6; the general report is due May 31.  The informative
assembly will be held on June 17.

CONTACT:  Analia Virginia Dominguez
          Pasaje las delicias 1181
          Adrogue, Lomas de Zamora

TRAVELCLUB: Credit Verification Process Ends
The credit verification process of Travelclub S.A. ends today.
Company receiver, Mr. Estudio Jose Antonio Calvio, is now
required to prepare the individual reports, which are due in
court on April 14. The general report is due May 27.

CONTACT:  Estudio Jose Antonio Calvi o
          Viamonte 1355
          Buenos Aires

WULI: Credit Verification Reports Due April 14
Mr. Jorge Eladio Feito, receiver of Wuli S.A., must file with
the Buenos Aires Court No. 2 the individual reports on the
credit verification results on April 14.

          Parana 326
          Buenos Aires

          Jorge Eladio Feito
          San Martin 662
          Buenos Aires


GLOBAL CROSSING: Tells FCC Legacy Charge Not Applicable to VoIP
Global Crossing (Nasdaq: GLBC), a leading innovator in Voice
over IP (VoIP) services, filed comments with the Federal
Communications Commission (FCC) (Wireline Docket Number 03-266)
concerning the proper regulation of IP telephony.

In its comments, Global Crossing encouraged the Federal
Communications Commission to expeditiously issue clear and
simple rules on the issues surrounding IP telephony, thereby
stimulating investment in the nation's telecommunications
infrastructure, promoting effective competition in this
important market, and freeing companies to innovate and maximize
the potential value of this emerging technology.

"The FCC must provide the proper incentives to ensure the growth
of IP telephony and VoIP services which will be vital to the
telecommunication industry and future economic growth," said
John Legere, Global Crossing's chief executive officer.  "Speed
and certainty are fundamental to this objective."

Global Crossing also recommended that the FCC affirmatively
declare that the legacy access charge system designed for
traditional circuit-switched voice telephony service does not
apply to Internet Protocol services.

"The legacy access charge system has been proven unworkable in
today's environment and it would be irresponsible for the FCC to
apply it to IP traffic," added Mr. Legere.


Global Crossing (Nasdaq: GLBC) provides telecommunications
solutions over the world's first integrated global IP-based
network.  Its core network connects more than 200 cities and 27
countries worldwide, and delivers services to more than 500
major cities, 50 countries and 5 continents around the globe.
The company's global sales and support model matches the network
footprint and, like the network, delivers a consistent customer
experience worldwide.

Global Crossing IP services are global in scale, linking the
world's enterprises, governments and carriers with customers,
employees and partners worldwide in a secure environment that is
ideally suited for IP-based business applications, allowing e-
commerce to thrive.  The company offers a full range of managed
data and voice products including Global Crossing IP VPN
Service, Global Crossing Managed Services and Global Crossing
VoIP services, to more than 40 percent of the Fortune 500, as
well as 700 carriers, mobile operators and ISPs.

Please visit http://www.globalcrossing.comfor more information
about Global Crossing.

          Press Contacts
          Catherine Berthier
          Phone: +1 212-412-4666

          Analysts/Investors Contact
          Mitch Burd
          Phone: + 1 800-836-0342

GLOBAL CROSSING: Completes Global FCO Network Project
Global Crossing (NASDAQ: GLBC) has completed the roll out of a
worldwide network for the U.K. Foreign and Commonwealth Office
(FCO). The final element of the network is a satellite earth
station in Canberra, Australia, established to serve FCO posts
in the Pacific islands. By connecting the island nations of
Tonga, Fiji, Papua New Guinea and the Solomon Islands, the FCO
Telecommunications Network (FTN) now extends to 220 sites in 140
countries. The contract, which runs to 2010, now generates more
than $40 million a year and an estimated $446 million over the
life of the contract.

This global Internet Protocol-based private network is the
largest outsourcing project ever awarded by the FCO, providing
secure, high-speed voice, data and messaging services to more
than 14,000 users in British embassies, consulates and high
commissions worldwide. Network security is a critical element of
the design, provision and operation of these services.

The versatility and efficacy of the FCO's network was further
demonstrated in recent months when Global Crossing extended the
FTN into Kabul in Afghanistan and provided international
communications to the Coalition Provisional Authority (CPA) in
Iraq. Rapid-deployment satellite links in the two major cities
of Basra and Baghdad, featuring secure communications equipment,
were commissioned within a month and will continue to operate
until a sovereign government is elected.

In addition, the FTN is now used by other government departments
that share FCO offices around the world -- more than 2,000 staff
of Her Majesty's Customs and Excise and the Department for
International Development that are posted abroad use the FTN for
their communications needs in 52 countries.

Phil Metcalf, managing director of Global Crossing Europe, said:
"The completion of this final phase of the FTN underscores our
ability to deploy global managed services, regardless of the
challenges of geography, technology, security and scalability.
This has proved to be an excellent solution for both partners --
one that is both cost effective and profitable. Our success with
the FCO has attracted the attention of the Spanish, Italian and
Danish governments, who are interested in replicating the system
for their foreign offices."

The FCO's Head of Communications Services, Derek Blackburn,
said: "The FTN has transformed the FCO's international
operations. Within the UK, we now have significant resilience in
all of our links to guard against any network disruption that
may come our way -- an essential consideration in the current
environment. In locations abroad where it used to take hours
just to make a successful call to London, we now have users
browsing the Internet, permanently connected to e-mail and
accessing government intranet sites with no unwanted
restrictions. That means staff have more time to do their real
job of being diplomats and ambassadors representing our

The scale and complexity of this flagship government contract
underline Global Crossing's vast experience in the government
sector over a period of 15 years. The company strategy for the
public sector is to leverage the extensive 500-city network,
exploit network security certification with the UK government
and use the accumulated experience of serving more than 90 UK
government departments to build the government business in North
America and continental Europe.

In rolling out the FTN, Global Crossing maximized the unique
reach of its global network, using satellite for local access in
remote and under-developed regions of the world where local
infrastructure is inadequate or unreliable. Global Crossing owns
and operates two satellite earth stations, one in Canberra and
another in Hampshire in the UK which is connected to the
Intelsat 904 satellite positioned over the Indian Ocean and
Telstar 12 in geostationary orbit over the Atlantic, serve 120
posts. These earth stations support 2Mbps capable links that are
providing users with full access to the voice, data and video
conferencing services available on the FTN, opening up the use
of applications such as online visa applications.

The FTN has transformed the way the FCO communicates as an
organization. The improvement in the FCO's ability to
communicate with outlying posts has been most dramatic,
particularly in developing countries where the FTN is now
delivering first-world standards of communications. All FCO
posts throughout the world now have equal access to information
via the FCO's Firecrest office automation system.

LORAL SPACE: Unit Launches Occasional-use Service on Telstar 10
Loral Skynet announced Monday the availability of occasional use
services on its far-reaching Telstar 10 satellite, covering
Asia, Australia, parts of Europe and Africa in C-band; and
Korea, Taiwan, Macau and China, including Hong Kong, in Ku-band.
Loral Skynet is a subsidiary of Loral Space & Communications
(OTC Bulletin Board: LRLSQ).

Loral Skynet's occasional-use service allows its customers to
lease fractional transponders on a part-time basis. Offered in
5-minute increments, this service offers a cost-efficient
platform for delivering breaking news stories, planned events,
or regularly scheduled recurring feeds. Loral Skynet will
initially offer satellite capacity on Telstar 10, and expand the
service to the new Telstar 18 satellite when it enters service
over Asia, presently planned for the second quarter of 2004.
Ascent Media Pte. Ltd, through its Singapore facility, will
provide satellite booking and access management services,
enabling Skynet's customers to package terrestrial services with
Telstar satellite capacity. Skynet's occasional use services in
Asia will initially be available in C-band, expanding to Ku-band
later this year.

"Loral Skynet has successfully offered occasional-use services
in North America and Europe for years and we're happy to now
bring this service to Asia," said Terry Hart, president, Loral
Skynet. "Part-time offerings enable many value-added end-to-end
services including videoconferencing, business television, pre-
and post-production feeds, broadcast distribution of sports,
educational, ethnic and niche programming, special events,
Internet and ad delivery."

"We are pleased to work with Loral Skynet," added Jeff Casey,
vice president, sales and marketing, Ascent Media. "Our own
well-founded depth of knowledge about the Asian market
complements the broad coverage offered now by Telstar 10 and
soon by Telstar 18. Working together with the Loral Skynet team,
our focus will be on customer service, responsiveness, and
superior technical support to the region's occasional use

In addition to the occasional-use services in Asia on Telstar
10, Loral Skynet provides occasional-use service on Telstar 11
and Telstar 12 in Europe, the Middle East and Africa.

Telstar 10, located at 76.5 degrees East longitude, is equipped
with 27 C-band and 24 Ku-band transponders (36 MHz equivalents).
The C-band payload provides coverage of Asia, Australia, parts
of Europe and Africa. The Ku-band payload covers Korea, Taiwan,
Macau and China, including Hong Kong. Telstar 10, which hosts
one of the most extensive cable neighborhoods in Asia,
distributes cable TV programming, direct-to-home services,
telecommunications, as well as Internet and VSAT (very small
aperture terminal) services.

Telstar 18 will be located at 138 degrees East longitude. The
satellite is equipped with 19 C-band transponders at 36 MHz and
8 Ku-band transponders at 54 MHz. The C-band covers Asia,
Australia, New Zealand, the Pacific islands and Hawaii and the
Ku-Band reaches China, India, Taiwan, Hong Kong and Korea. Its
main markets will be cable programming, direct-to-home
broadcasting, Internet and VSAT services within Asia while
providing an inter-connect to the U.S.

Ascent Media Network Services specializes in video distribution
and post- production services, with facilities in Los Angeles,
CA; New York; NY; Stamford, CT; Minneapolis, MN; London, and
Singapore. Channel origination, master control, creative
services and transmission are among the many offerings utilized
by the major broadcast and cable networks as well as other
content providers. In addition, the group provides a full array
of engineering and technical services for broadcast, cable,
satellite, and corporate clients.

Ascent Media Group is a provider of services to the media
entertainment industry, offering clients effective solutions for
the creation, management and distribution of content through
more than 70 facilities worldwide. A wholly owned subsidiary of
Liberty Media Corporation (NYSE: L, LMC.B), Ascent Media Group
( headquartered in Santa Monica,

A pioneer in the satellite industry, Loral Skynet continues to
deliver the superior service quality and range of satellite
solutions that have made it an industry leader for more than 40
years. Through the broad coverage of the Telstar satellite
fleet, and in combination with its established hybrid VSAT/fiber
global network infrastructure, Skynet is a source for all
broadcast, data network, Internet access, IP and systems
integration needs. Headquartered in Bedminster, New Jersey,
Loral Skynet is dedicated to providing secure, high-quality
connectivity and communications. For more information, visit

In addition to being the parent company of Loral Skynet, Loral
Space & Communications is a world-class leader in the design and
manufacture of satellites and satellite systems for commercial
and government applications through its Space Systems/Loral

CONTACT:  Amy Trowbridge
          Phone: (908) 470-2495

          Investor Contact:
          John McCarthy
          Phone: (212) 338-5345

          Web site:


AHOLD: Sells Bompreco to Wal-Mart, Hipercard to Unibanco
Ahold has sold its Brazilian retail chain Bompreco to Wal-Mart
Stores Inc.  Simultaneously, Ahold sold its Brazilian credit
card operation Hipercard to Unibanco S.A. The combined
enterprise value of these operations amounts to approximately
US$500 million.

The assets consist of Bompreco (a food retailer with 118
hypermarkets and supermarkets with a leading position in
Northeastern Brazil) and Hipercard (the leading credit card in
Northeastern Brazil with over 2 million cardholders). G.
Barbosa, Ahold's other Brazilian retail operation with 32 stores
that was acquired by Ahold in January 2002, is not included in
the transaction.

Wal-Mart Stores, Inc., started operations in Brazil in May 1995.
Operating under different banners, the company's stores and
clubs are located in the states of Sao Paulo, Parana, Rio de
Janeiro and Minais Gerais. With sales of BRL1.9 billion in 2003,
Wal-Mart Brazil has approximately 7,000 employees.  Unibanco,
the third largest private sector Brazilian financial group,
focuses on retail and wholesale banking, and insurance and
pensions and wealth management.

Commenting on the agreements, Theo de Raad, the Ahold Corporate
Executive Board member responsible for Latin America and Asia,
said: "We are delighted to have found buyers of such quality as
Wal-Mart and Unibanco. They offer an excellent fit for Bompreco
and Hipercard and we are confident that this will prove great
for customers, associates, suppliers and others involved."

The divestment of Ahold's activities in Brazil is part of
Ahold's strategy to optimize its portfolio and to strengthen its
financial position by reducing debt.  Ahold first entered the
Brazilian market in 1996 through an agreement with the owner of
Bompreco. In October 2001, Bompreco became a wholly owned
subsidiary of Ahold. Unaudited 2003 net sales for Bompreco
amounted to approximately BRL2.9 billion (approximately Euro843
million). Bompreco and Hipercard employ more than 20,000 people.

CFLCL: Posts Investor Relations Monthly Report
Edition # 01/2004 - Feb. 20th, 2004

Sale completed of two SHPs for BRL131.7 million

In due accordance with art. 3 of CVM Instruction 358/2002 and
further to the Relevant Information published on November 7,
2003, the company Companhia Forca e Luz Cataguazes-Leopoldina
("CFLCL") gives notice that on December 24, 2003, Brascan
Energetica S/A and Brascan Natural Resources S/A (referred to
collectively as "BRASCAN") and CFLCL irrevocably and
irreversibly executed the Purchase and Sale Agreement of Shares
in the Centrais Hidreletricas Grapon S/A (a CFLCL subsidiary)
which is the controlling shareholder of the Ivan Botelho I and
Túlio Cordeiro de Mello Small Hydroelectric Power Plants ("Power
Plants"), involving the transfer of the loans of BRL51.7 million
taken out from the Banco Nacional de Desenvolvimento Economico e
Social (National Development Bank) to build said Power Plants.
Prior consent from the regulatory agency and debenture holders
concerning the sale of said shares was also obtained in December
2003. The aforementioned Agreement was settled on February 20,
2004, which provided CFLCL with cash amount of approximately BRL
80.0 million. This transaction resulted in positive earnings for
the 2003 fiscal year of approximately BRL45.2 million, net of
book value of the assets sold.

Another SHP (24 MW) enters in commercial operation

The Ormeo Junqueira Botelho SHP, the new name of the old
Cachoeira Encoberta SHP, was built in just 18 months and began
operating commercially at the end of December, despite the array
of geological surprises encountered on the land which it
occupies in the Muriae region (Minas Gerais state). This is the
fourth of the five SHPs currently under construction to have
begun operating commercially this year. Including the 24 MW
installed capacity (102 GWh annual production capacity)
introduced by this SHP, the Sistema Cataguazes-Leopoldina now
has an installed capacity of approximately 190 MW (1,175 GWh
annual production capacity), which corresponds to roughly 20% of
its retail market.

Consolidated operating revenue of Cataguazes Cataguazes-
Leopoldina was BRL1,320 million in 2003

The consolidated gross operating revenue of Cataguazes-
Leopoldina (CFLCL) reached BRL1,320 million in 2003, which
represents an increase of 25.5% on 2002. The invoiced revenue in
December was BRL132 million. This performance is mainly due to
the energy sales increase in the concession area of its
subsidiary Saelpa, which have set a new record for the second
consecutive month. Saelpa sales in December was 206 GWh, up 7.7%
against December 2002 and 1.6% over November 2003. The
consolidated electricity sales have risen by 7.1% in 2002,
reaching 5,891 GWh, which is mainly due to the increasing energy
sales made by the subsidiaries Saelpa, CELB and Energipe, which
operate in the Brazilian Northeast region.

CONTACT:  In Cataguases
          Phone: +55 32 3429-6000
          Fax: +55 32 3429-6480 / 3429-6317

          In Rio de Janeiro
          Phone: +55 21 2122-6900
          Fax: +55 21 2122-6931

          Web site:
          E-mail to:

TCP: Notice of Regular, Special Meetings of Shareholders
The shareholders are hereby called to attend the Regular and
Special Meetings of Shareholders of the company to be held at
1:00 p.m. on March 26, 2004 at Teatro Vivo, on Av. Roque Petroni
Junior, 1464 - terreo (Teatro Vivo), Morumbi, in the Capital of
Sao Paulo State, in order to make resolutions on the following
agenda: At the Regular Meeting of Shareholders:

(1)  To take the Directors' and Officers' accounts; to review,
     discuss and vote the company's financial statements for the
     fiscal year ended on December 31, 2003;

(2)  To elect the members of the Audit Committee; and

(3)  To determine the overall annual compensation of the
     directors and officers of the company and the individual
     compensation of the members of the Audit Committee. At the
     Special Meeting of Shareholders: To ratify the election of
     two Directors.


(A) Proxies for representation of shareholders at the Meetings
    should be deposited with the company's head-office, at Av.
    Roque Petroni, 1464, 3o andar - lado B (Legal Department),
    until forty-eight (48) hours before the beginning of the

(B) Shareholders participant of the Fungible Custody of
    Registered Shares of the Stock Exchanges wishing to attend
    these Meetings should produce a statement issued until
    forty-eight (48) hours before the beginning of the meetings,
    evidencing their respective shareholding.

TELEMAR: Starts Commercial Service of Velox Wi-Fi
Brazilian wireline operator Telemar and its wireless subsidiary,
Oi, have begun commercializing their wireless local access
service, Velox Wi-Fi, under a prepaid model, Business News
Americas said Monday.

"With Velox Wi-Fi, users from all over Brazil will have wireless
Internet access in hotels and airports all over the country,
without having to pay a monthly fee," Telemar said in a

The pricing plans are BRL25 (US$8.64) for a one-day unlimited
pass, BRL10 for a single hour, or BRL15 for two hours within a
three-month period. Prepaid card vendor locations will appear
instantly on users' wireless computer screens when they are
located within a Telemar Wi-Fi area.

* IMF Managing Director Hails Reforms, Macroeconomic Policies
International Monetary Fund (IMF) Managing Director Horst Kohler
made the following statement Monday in Sao Paulo at the
conclusion of his visit to Brazil:

"It is with great pleasure that I again visit Brazil. I had a
very productive meeting with President Luiz Inacio Lula da Silva
yesterday [Sunday], and I would like to extend my thanks to his
Excellency for his warm welcome. Another highlight of my trip
was my visit earlier today [Monday] to communities in Minas
Gerais that are benefiting from the Zero Hunger program and the
Milk for Life project, as well as to the Jaiba irrigation

"It has been a little over a year since I last visited Brazil.
The changes in this short period of time are immense. The
government has adhered to prudent macroeconomic policies and
tackled long-standing structural problems by passing reforms of
the pension and tax system and making progress on a new
bankruptcy law. This strong performance is clearly bearing
fruit: a broad-based economic recovery is underway that should
strengthen during 2004, employment is on the rise, exports have
expanded at double-digit rates, and vulnerabilities have been
reduced. These developments leave Brazil well-positioned to
benefit from the global upturn.

"My discussions with the President, who was accompanied by
Finance Minister Antonio Palocci and Central Bank Governor
Henrique Meirelles, focused on the need to instill a framework
for sustained medium term growth and improved equity in Brazil
and, more generally, in the Latin American region. In this
context, we discussed how best the IMF and the other
international institutions can contribute to moving forward
economic and social reforms toward this goal.

"We agreed that consistently building the social and physical
infrastructure needs to be given priority in such a framework,
especially against a background of falling and volatile
infrastructure investment in many countries in the region. The
IMF is working to develop new statistical and policy guidelines
that would create more flexibility for increasing sound public
investments within an overall framework of fiscal and debt
sustainability. I hope to discuss this issue further in the
coming months with Minister Palocci and other Ministers in the
region after an initial discussion with the Fund's Executive
Board. Of course, we will be coordinating our efforts closely
with our colleagues in the World Bank and the Inter-American
Development Bank (IDB).

"I also listened carefully to President Lula's views on how the
IMF can enhance its crisis-prevention role in Latin America and
other emerging market countries. I assured President Lula that
crisis-prevention lies at the heart of the Fund's agenda and
that the Executive Board will soon discuss possible modalities
to increase further our role in crisis-prevention and in helping
countries cope with unexpected shocks.

"During my visit, I was anxious to see first-hand how the
government is tackling its mandate to improve living standards
for the most vulnerable citizens. My visit to Minas Gerais, in
the company of Social Affairs Minister Patrus Ananias, gave me
an opportunity to see how the authorities are putting their
social commitment into practice, and it has left a very deep
impression on me. The flagship Zero Hunger program has generated
interest throughout the world because of its multidimensional
approach that addresses the varied causes and manifestations of
hunger in both urban and rural communities. Initiatives like
Zero Hunger and the Milk for Life project are concrete examples
of social safety net programs whose experience will also be
beneficial to other countries combating poverty and hunger. I
was privileged to meet with Archbishop Geraldo Magela de Castro
in Montes Claros who explained the enormous contribution that
the Milk for Life project is making to the poor families in the
area. I also visited the Jaíba irrigation project that is
transforming the livelihood of scores of hundreds of poor
families dependent on agriculture.

"We, at the IMF, have a long-standing commitment to support
Brazil's efforts to achieve growth rates that are commensurate
with its great economic potential and to improve living
standards, particularly for the poor."

          700 19th Street, NW
          Washington, D.C. 20431 USA

          Public Affairs
          Phone: 202-623-7300
          Fax: 202-623-6278

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


AES GENER: Fitch Assigns Prelim 'BB' Rating to Proposed Bond
Fitch Ratings has assigned a preliminary 'BB' rating to AES
Gener S.A.'s (Gener) proposed long-term US$300 million 144A bond
issuance. The bond will be interest only and have a bullet
maturity. Proceeds from the issuance will be used to partially
finance the repurchase of outstanding debt through a tender
offer. The company's 'BB-' international foreign and local
currency ratings and 'chl BBB-' national scale rating remain on
Rating Watch Positive and will be finalized upon completion of
the transactions.

The assigned rating to the proposed issuance is based on Gener's
pro forma capitalization, leverage and interest coverage ratios
following the completion of the company's recapitalization plan.
The underlying credit rating also reflects Gener's position as
the largest thermal generator in Chile, its competitive dispatch
position, its operating strategy to optimize contract
electricity sales, a constructive regulatory environment, an
economically sound and growing service area, and experienced

The operating fundamentals of Gener continue to reflect the
company's sound position in the Chilean electricity market.
Electricity demand growth in Chile has been almost 6% over the
last twelve months and regulated prices have continued their
upward trend, increasing approximately 9% in U.S. dollar terms
in the October 2003 tariff reset. Gener further benefits from
its project-like structural characteristics, including long-
dated power purchase agreements (PPAs) with financially strong
customers and fuel supply contracts that reduce business risk.
The rating also considers exposure to variations in hydrology
and the impact on electricity generation, commodity price risks,
currency risks and ongoing competitive pressures.

The international bond offering is part of Gener's announced
recapitalization plan to address approximately US$700 million of
debt maturing in 2005 and 2006 and reduce total debt by US$300
million. Sources of funds to repay and refinance existing debt
include the new US$300 million international bond, the US$298
million repayment to Gener of a mercantile account (intercompany
loan) from Gener's direct holding company, Inversiones Cachagua
(Cachagua), a new US$75 million unsecured term loan, a capital
increase for up to US$125 million to be effected by Cachagua and
cash on hand at Gener. The company has also announced its
intention to pay a US$100 million dividend following completion
of the debt refinancing/repayment.

The company has tendered for the US$200 million of outstanding
Yankee bonds due in 2006 and the US$500 million of Chilean and
US convertible bonds due in 2005. Approximately US$145 million
of Yankee bonds have been tendered and are expected to be paid
with proceeds from the mercantile account promptly. The tender
for the convertible bonds has been extended until the end of
March, however it is expected that Gener will call any
convertible bonds not tendered. The convertible bonds will be
paid with proceeds from the new bond and term loan, cash on
hand, and proceeds from the capital increase. Existing Yankee
bonds that are not tendered will be repaid by their scheduled
maturity of January 2006.

The US$300 million debt repayment and new bond will reduce
leverage, increase interest coverage ratios and significantly
extend the average debt maturity profile of the company
improving the company's financial flexibility. Following the
recapitalization transactions, consolidated EBITDA-to-interest
(excluding Chivor, Gener's Colombian generating company) is
expected to increase to 3.2x for 2004 from 2.1x through 2003.
Debt-to-EBITDA should remain stable at 4.1x for 2004, though
Gener's liquidity position is expected to include increased cash
related to the completed contract negotiation with one of its
largest customers, Minera Escondida resulting in a lower net
debt to EBITDA ratio. Although Gener continues to consolidate
Chivor in its reported financial statements, the company has
excluded Chivor from its financial projections given the
prohibition of dividends and the limited guaranteed support for
the company.

In addition to the recapitalization of Gener, the company has
also renegotiated US$151 million of consolidated debt associated
with the TermoAndes and InterAndes projects to extend maturities
and improve the amortization schedule. The projects have accrued
restricted cash of approximately US$36 million as of end of
February 2004, which was used to partially repay the existing

The underlying credit quality of Gener also benefits from
certain structural protections. Gener's stand-alone
creditworthiness is supported by: the company being domiciled in
Chile, limitations on dividends or intercompany loans, the
inclusion of independent directors on the company's board of
directors and strengthened corporate governance, which also
affords it a high degree of isolation from its parent company,
The AES Corporation (AES, Fitch-rated 'B' senior unsecured

Gener is the second largest electricity generation group in
Chile in terms of operating revenue and generating capacity (22%
market share) with an installed capacity of 1,804 MW. The
company currently participates in electricity generation in
Colombia, Argentina and the Dominican Republic, as well as
natural gas transportation in Chile and Argentina. Gener is
98.65% owned by AES.

CONTACT:  Fitch Ratings
          Jason T. Todd
          Phone: 312-368-3217

          Carlos Diez
          Santiago, Chile
          Phone: 562-206-7171

          James Jockle
          New York
          Phone: 212-908-0547

AES GENER: Parent Settles $298 Million Mercantile Account
U.S. utility AES Corp. settled Friday a US$297.9 million
mercantile account with its Chilean unit AES Gener, informed
Geners general manager Felipe Ceron.  This sum has to do with a
contract subscribed in February 2001 between AES Gener S.A. --
then called Gener S.A. -- and Inversiones Cachagua, a company
through which AES controls its Chilean subsidiary.

The payment is part of AES' previously announced debt overhaul
plan for its Chilean unit, which also includes a US$125 million
capital increase, a US$75 million syndicated loan, the issuance
of some US$300 million in new bonds and the buy back of around
US$700 million in notes.

PARMALAT CHILE: Solari Wants Speedy Acquisition
Chilean businesswoman Liliana Solari, one of the owners of
department store chain Falabella and head of investment company
Inversiones Bethia, wants to close the acquisition of Italian
dairy company Parmalat S.p.A.'s operations in Chile as soon as

Ms. Solari is also after Parmalat's units in Argentina and
Uruguay, though executives close to the businesswoman denied
this possibility. Market sources confirmed Bethia had offered to
acquire all of the assets of the Italian dairy company in
Argentina, Uruguay and Chile.  Accordingly, Ms. Solari had
initially offered to buy the Chile assets but later expanded her
proposal in an attempt to have a better negotiating position.
Parmalat bills around US$140 million in these three markets.

The prospect of acquiring these assets makes Bethia executives
cringe, however.  These Parmalat units have huge contingent
debts and liabilities, including US$145 million owed to banks
and US$25 million owed to its parent.  In Argentina, Parmalat is
a little behind in payments to suppliers but does not have big
debts. Parmalat's unit in Uruguay is involved in suspicious
dealings through a local investment company named Winshaw
Trading. Parmalat is believed to have funneled large sums of
money to Winshaw Trading.  In Chile, Bethia offered to pay part
of Parmalat's US$3.68 million debt to suppliers in the South of
the country, so that the company can restart regular operations.


PETROECUADOR: President Orders Immediate Reorganization
Ecuadorian President Lucio Gutierrez on Monday placed
Petroecuador under a "state of emergency" as part of an effort
to stamp out oil theft and trim bureaucracy within the state-
owned oil company, reports EFE.

"We have information that some workers and former officials are
living like sheiks and we want to know how they obtained so much
money in so little time," Mr. Gutierrez said at a news

The president gave Energy Minister Carlos Arboleda two months to
restructure the Company and slash bureaucracy.  Mr. Arboleda has
three months to show results and six months to eliminate the
widespread theft of fuel.  The government estimates it loses
US$100 million to US$150 million annually from the theft of
fuel.  President Gutierrez said the armed forces and police will
heighten security along pipelines and around storage areas.

On Friday, the president fired more than twenty senior
Petroecuador executives, including two vice presidents, in an
attempt to improve the Company's health.  In addition, the
president said he will ask judicial authorities to investigate
possible corruption by high-ranking government officials from
the energy sector dating back to 1989.


CFE: Ex-Im Bank Opens $60 Million Credit Facility
The Export-Import Bank of the United States (Ex-Im Bank)
approved a $60 million credit guarantee facility to back the
purchase by Mexico's government-owned utility, Comision Federal
de Electricidad (CFE), of equipment and services from a wide
range of U.S. companies.

In addition to supporting CFE's annual capital requirements, the
sales will help sustain thousands of U.S. jobs at companies
large and small.  CFE already anticipates purchases for the
first half of 2004 will total approximately US$50 million from
20 U.S. suppliers.  The utility expects to buy test and
measurement equipment, turbine components and parts, control
systems, fiber-optic cable, and other equipment.

The medium-term guaranteed line of credit from Credit Lyonnais
Global Partners, New York, N.Y., covers a one-year period and is
a renewal of an existing facility that CFE has had with Ex-Im
Bank since 1995.  The renewed facility is nearly triple the
US$20.5 million level of the previous facility.

CFE is mandated by the Mexican government to maximize its use of
export credit agency-supported financing for its procurement.
The Ex-Im Bank support levels the playing field for U.S.
exporters, since several foreign competitors backed by their
export credit agencies are actively seeking to address CFE's
procurement requirements.

Mexico is one of Ex-Im Bank's biggest markets with a portfolio
nearing US$6 billion.  In fiscal year 2003, Ex-Im Bank
authorized US$1.6 billion in financing to support U.S. exports
to Mexico.

Ex-Im Bank this year marks its 70th year of helping finance the
sale of U.S. exports, primarily to emerging markets throughout
the world, by providing loan guarantees, export credit
insurance, and direct loans. In fiscal year 2003, Ex-Im Bank, an
independent federal agency, authorized financing to support
$14.3 billion of U.S. exports worldwide.

CONTACT:  Marianna Ohe  (202) 565-3200
          Web site:

CINTRA: Books MXN250 Million Full-year Net Loss
(All figures are expressed in pesos of equivalent purchasing
power as of December 31st, 2003, unless specified otherwise.
Financial Statements meet Mexican GAAP)

CINTRA, S.A. DE C.V., (BMV:CINTRA) Mexico 's leading air
transportation system reported its non audited results for the
fourth quarter 2003, emphasizing the following:



Load Factor                          60.8%

Total Revenues (million pesos)      7,702
EBITDAR (million pesos)             1,062
Operation Loss (million pesos)        (13)
Net Loss (million pesos)             (250)

Fourth Quarter 2003 compared to Fourth Quarter 2002

                                      Fourth Quarter

Comparative Highlights
                                2003     2002     Variation

Load factor                    60.8%     59.7%     1.1 p.p.
Total revenue (million pesos)  7,702     7,546      2.1%
EBITDAR (% of revenue)         13.5%     8.1%     5.4 p.p.
Operation Loss (million pesos)  (13)    (403)      96.7%
Net loss (million pesos)        (250)   (419)      40.2%

In spite of the cargo and domestic market reduction, total
revenue increased 2.1% due to the growth in international
market, other income and excess baggage regarding those in 4Q
2002. The increase in EBITDAR is as result of the increase in
total revenue and the reduction of Operation Expenses,
particularly in salaries, insurance, administration, traffic
servicing, maintenance, promotions & sales regarding the same
period 2002.

The above result decreased by capital expenses -which increased
5.7% than 4Q 2002-, generate an Operation Loss of 13 million
pesos, 96.7% lower than the same period 2002.

CINTRA obtained a net loss during the quarter of 250 million
pesos lower in 40.2% than the one from the same period 2002.

During the period October - December 2003 the ASK's reported
10,159 million, the same than 4Q  2002.

The demand expressed in RPK's for the 4Q 2003 was 6,181 million,
1.5% higher than the same period 2002.

The yield reached 1.072 pesos during the quarter, 1.3% lower
than the same period 2002, mainly as a consequence of the unfair
competition that still subsists in the domestic and
international markets.

The ASK/Cost decreased 4.2% for the fourth quarter 2002,
reaching 0.640 pesos, due to the austerity measures and the
implemented discipline that turned into savings

A. Operation Results


Total revenues during the period October - December were 7,702
million pesos, that represents a 2.1% increase in real terms
than the same period 2002, such growth was generated by the
27.8% increase in other, the 4.7% increase in excess baggage and
2.2% in international market, compensated with the 3.9% and 1.2%
decrease in cargo and domestic market respectively; regarding
cargo,  the reduction was due to the grounding of a Boeing B-727
exclusively used to these activities, regarding the decrease in
domestic market, the reduction was as a consequence of the
unfair competition from domestic airlines that do no belong to

In U.S. dollars terms, during the period October - December 2003
total revenues were 684 million, that shows a 3.8% decrease with
respect to the same period 2002.

Operation Expenses

Total operation expenses during the fourth quarter 2003 were
6,640 million pesos, 4.2% lower than the same period 2002.

Personnel cost was 2,404 million pesos, 3.3% lower than the
fourth quarter 2002, as a result of the adopted measures such as
personnel reduction in Cintra's companies, as well as salaries
reductions in Mexicana de Aviación.

Jet fuel expenditure was 1,133 million pesos, superior in 7.3%
than the same period 2002, this rise was due to the 16.8%
average increase in the jet fuel price, compared to the average
prices during the fourth quarter 2002, as well as the
devaluation of the Mexican peso, which average exchange rate
during the quarter was $11.20 Mexican pesos per U.S. dollar than
$10.15 Mexican pesos per U.S. dollar during the same period last
year, compensated with the jet fuel coverage program that
protected the 38% of our 2003 consumptions.

Aircraft and traffic servicing were 792 million pesos during the
period, 5.5% lower than those in the same period 2002, as a
consequence of the negotiations to reduce costs with some
airport groups.

Maintenance was 747 million pesos, 2.6% lower than the fourth
quarter 2002, due to the taken actions that generated savings,
not deviating the importance of this matter.

Passenger service was 231 million pesos during the quarter, 2.2%
higher than the same period 2002, as a consequence of the
increase in the number of passengers during the period in 1.6%.

Commissions were 470 million pesos during the fourth quarter
2003, 17.2% lower than those in the same period 2002, as a
consequence of the new incentive program, in spite of the 1.6%
increase in transported passengers.

Promotion and sales during the period reached 436 million pesos,
which reflects a decrease of 8.0% compared to the period October
- December 2002, as a result of the resources optimization.

Insurance figures reached 122 million pesos during the fourth
quarter 2003, 27.6% lower than the same period 2002, as a result
of the re-negotiations of premiums, due to the low accident rate
as well as the fleet renewal in Cintra's companies.

Administration and IT expenses were 304 million pesos, lower in
12.5% than the same period 2002 which reflects the implemented
discipline and austerity measures.

Operation expenses during the period were 590 million dollars,
lower in 9.7% than the same quarter 2002; this tendency is
reflected in most of the Operation Expenses figures, except for
Jet fuel expenditure.

Capital expenses

Capital expenses were 1,075 million pesos during 4Q 2003, 5.7%
higher than the same period 2002, due to the flight equipment
rents equivalent to 823 million pesos, 9.0% higher than the same
quarter of last year originated by the fleet renewal.

Regarding depreciation, it reached 252 million pesos, 3.7%
lower than the same period 2002 due to the termination of
depreciation on Mexicana's Boeing B-727 aircraft.

Operation loss

During the period October - December 2003 the operation loss was
13 million pesos, compared to 403 million pesos during the same
period 2002.

Integral Financing Income

Integral Financing Income during the fourth quarter 2003 was 87
million pesos, higher in 90.3% than the same quarter 2002, where
financial expenses were 116 million pesos, that shows a 57.8%
increase than the same period 2002.

Foreign exchange gain was 83 million pesos, 10.8% higher than
period October - December 2002; as a result of the Mexican peso
devaluation equivalent to 10.3%.

During the fourth quarter 2003 monetary position obtained a
positive figure of 112 million pesos, compared to the 103
million pesos gain during the same period 2002,  this lower
variation is due to the composition of the monetary items,
compensated with a decrease in the period inflation.

Net loss

During the period October - December 2003 Cintra obtained a 250
million pesos net loss, lower in 40.2% than the obtained during
the same period 2002.

Relevant events

These are the most relevant events during the fourth quarter

Resignation of the Chairman of the Board of CINTRA

The Board of Directors of Cintra accepted on December 16th, 2003
the irrevocable resignation of Luis Gutierrez Ruvalcaba as
Chairman of the Board and appointed Rogelio Gasca Neri instead

Opening of Buenos Aires Route

On December 15th, 2003 Mexicana de Aviación started regular
operations from Mexico City to Buenos Aires , Argentina in a
Boeing 767-300 aircraft; it is important to mention that the
results obtained during the first weeks generated positive

Increase in the jet fuel price

In spite of the jet fuel coverage program that protects 38% of
our 2003 consumptions, the increases in jet fuel price during
the year affected the results in a negative way.

Foreign exchange

As we mentioned previously, the parity of the Mexican peso
during the quarter was key in the results obtained during the
4Q, reaching $11.20 Mexican pesos per U.S. dollar against $10.15
Mexican peso per U.S. dollar during the same quarter 2002.

Cash flow increase

During the period October - December 2003, cash flow increased
approximately 43 million dollars than the third quarter of the
same year.

Changes in the fleet composition

In order to improve their operation programs, during the period
Aerom,xico grounded two aircrafts, an MD-82 and four DC-9 ,and
acquired six Boeing 737-700; on the other hand, Mexicana
incorporated its first Boeing 767-300.

Authorization of fleet renewal in Mexicana

During the quarter Mexicana obtained the authorization from the
Board of Directors to replace Airbus A 318 aircraft instead of
Fokker 100, which represents an important step in the operative
consolidation process of the company, in order to optimize the
major maintenance of the aircraft, crew rotation and training

Main Accumulated Results January - December 2003


Total revenues during the period were 30,065 million pesos, a
0.9% increase than the same period 2002 mainly as a result of a
21% increase in other, compensated with a 2.4% and 2.9%
reduction in domestic market and cargo, respectively.

In US dollars terms, total revenues during the period January -
December 2003 were 2,727 million dollars, 5.6% lower than those
for the same period 2002, as a result of the decrease in
revenues, except for other.

Operation Expenses

During 2003 Operation expenses were 27,153 million pesos, a 1.8%
increase against the same period 2002, as a result of the 18.3%
increase in jet fuel expenditure, 4.5% increase in promotion and
sales, all of them compared to the same period 2002. It is
important to mention that the 8.2% and 17% reduction in
administration and IT and insurance, respectively.

In US dollars terms, operation expenses were 2,463 million
dollars during the period January - December 2003, 4.8% lower
than the same period 2002, tendency reflected in most of the
issues, except jet fuel expenditure and Promotion and Sales.

Capital expenses

Capital expenses during 2003 were 4,228 million pesos, 4.5%
higher than the same period 2002, as a result of 8.6% increase
in rents and 6.64% decrease in depreciation.

Operation loss

As a result of the above matters, during the period January -
December 2003 Operation loss was 1,316 million pesos, compared
to 928 million pesos during the same period 2002.

Integral Financial Income

Integral Financial Income was 397 million pesos during 2003,
28.7% lower than last year, as a result of the 52.3% decrease in
foreign exchange, as a consequence of the parity, and the 21.4%
deficit of monetary position, due to a lower inflation during

Net loss

During 2003 the net loss was 2,125 million pesos, 23.2% higher
than the same period 2002.

To see financial statements:

          Av Xola 535 piso 16 col. del Valle
          Mexico DF
          Tel. (5)448 - 8000

INDUSTRIAS PENOLES: Reports Bigger 2003 Net Loss
Mexican minerals group Industrias Penoles (BMV: PENOLES) ended
2003 with a higher net loss compared to that of the previous
year, reports Business News Americas.

In a filing with Mexico City's stock exchange, the Company said
it had a net loss of MXN153 million (US$14 million) in 2003,
against a net loss of MXN116 million in 2002, due in part to
losses sustained by its metals division and the exchange rate
with the U.S. dollar.  Ebitda dropped 9.2% to MXN1.45 billion,
operating profit was off 18% to MXN410 million, while sales grew
9% to MXN12.9 billion, the filing said.

"Lead smelting, lead-silver refining and the zinc plant operated
at higher levels than the year before," Penoles said. "Still,
the production of refined gold fell 9.2% and that of silver 1.9%
due to the shortage of imports with high gold and silver

SANLUIS CORPORACION: Fourth Quarter Sales Up 15%
SANLUIS Corporacion, S.A. de C.V. (BMV: SANLUIS), a Mexican
industrial group that manufactures auto parts, reported on
Friday results for the three months ended December 31st, 2003.

In spite of uncertain conditions in the world and lower economic
activity in the United States, our principal market,
consolidated results of SANLUIS Rassini were satisfactory.

Improved operating results enabled us to be self-sufficient from
the standpoint of cash flow. We met all our financial
obligations, and in spite of a recent complicated debt
restructuring, we generated sufficient resources to comfortably
finance operations internally. We were able, as a result, to
absorb lower levels of supplier credit, as one of our steel
suppliers faced serious operating and financial problems for a
large portion of the year.

Consolidated sales of SANLUIS rose 10% to US$ 484.3 million.
Suspension sales were 8.5% above the previous year due to higher
volumes in leaf springs (+12%), coil springs (+33%) as well as
torsion bars (+5%), while export Brakes were 31% above levels
experienced in 2002. Sales to our three principal clients,
General Motors, Ford Motor Co., and DaimlerChrysler rose 9%,
17%, and 3%, respectively. Sales to Volkswagen increased 12%;
sales to BMW rose 11%; and sales to Toyota were 2% higher than

The higher level of sales, together with greater efficiency and
productivity in the plants, reduction of fixed manufacturing
costs and lower sales and administrative expenses partially
offset the significant negative impact of higher prices of
steel, natural gas, electricity, and steel scrap. The positive
sales and productivity trends also partially absorbed the impact
of lower sales prices on mature platforms serviced by the
Suspensions Group. The net result was a satisfactory level of
EBITDA (earnings before depreciation, interest, and taxes).

Consolidated EBITDA in 2003 was US$ 68.3 million, 1.0% lower
than last year, which indicates the large effort made to
compensate for previously mentioned increase in raw material
prices. Operative margin (EBITDA/Sales) was 14.1% compared with
15.6% achieved the previous year.

The positive operating results were matched by an even larger
improvement in cash flow as a result of improved receivable and
inventory turnover, which offset the negative effect of reduced
supplier credit with the rearrangement of suppliers made
necessary by a work stoppage at our main supplier, located in
Canada. Emergency replacements in Mexico were unable to offer
the more attractive terms normally provided by the Canadian
supplier. Thanks to better working capital management together
with lower levels of investment in machinery and equipment,
SANLUIS was able to increase its net cash flow.


SANLUIS produces suspensions and brake components for the global
automotive industry, with a principal focus on original
equipment manufacturers (OEMs).

Suspension products include leaf springs (parabolic and multi-
leaf), coil springs, torsion bars, bushings, and stabilizer
bars. The Brake Division produces drums and discs.

SANLUIS Rassini has a 90% share of the Mexican market for light
truck suspensions and a 77% share of the U.S. and Canadian
market. Its solid and diversified client base includes General
Motors, Ford, DaimlerChrysler, Nissan, Volkswagen, and Toyota.
In the Brake business, SANLUIS Rassini has a 12% market share in
the U.S. and Canada in the disc and drum segment of the light

To see financial statements:

CONTACT:  SANLUIS Corporacion, S.A. de C.V.
          Hector Amador
          Phone: +525-5-229-58-38
          Fax: +525-5-202-38-42
          Home page:

TFM: Violates Covenants on $195 Million Bank Loans
Mexico's Grupo TMM SA said Friday that its affiliate,
Transportacion Ferroviaria Mexicana (TFM), has violated
covenants on around US$195 million of bank loans including
commercial paper.

TFM, Mexico's biggest railway company, has been in talks about
the matter with its bank creditors in recent weeks and expects
them to soon waive the covenant. None of TFM's loans that are in
technical default will come due before September.

"This won't have any effect on (TFM's) ability to meet its
debts," said Marco Provencio, a spokesman for TMM.

TFM recently had 2.1 times as much earnings before interest,
taxes, depreciation and amortization than it had in interest
costs on debt. According to its covenant agreement on the bank
loans, TFM is supposed to have 2.25 times as much EBITDA to debt
interest payments. The Company has warned in recent months that
it might violate the agreement.

The Company is now trying to convert US$85 million of commercial
paper into a term loan that matures in 2006, according to a
telephone conference call on Friday with company officials
including Mario Mohar and Javier Segovia. This new debt won't be
given priority over the Company's other debts.

Provencio declined to comment on which creditors hold the bank

TMM, which is a majority shareholder of TFM, has been in default
for around nine months. TFM had around US$1.2 billion in total
liabilities as of December 31, 2003, according to a press

          Mario Mohar or Jacinto Marina, 011-525-55-629-8866
          Leon Ortiz, 011-525-55-447-5836


PAN AMERICAN: Urges Holders to Convert Debentures Early
Friday that it intends to make an offer to encourage early
conversion by holders of the Company's US$86.25 million
outstanding principal amount of 5.25% convertible debentures due
July 31, 2009 (the "Debentures"). At present, Pan American can
only force conversion of the Debentures after a three-year no-
forced-conversion term, which expires on July 31, 2006. During
the remainder of this term, interest in the amount of US $131.25
per US$1,000 principal amount of Debentures would be payable to
the holders. Pan American will offer such amount of interest in
cash plus common shares having a value equal to US$40 per
US$1,000 principal amount of Debentures converted early, based
on the closing market price of Pan American's common shares on
the Nasdaq market on the date the formal offer is made. Assuming
early conversion of all outstanding Debentures pursuant to the
offer, Pan American's total cash payment would be approximately
US$11.32 million and common shares having a value of US$3.45
million would be issued. The offer will be subject to regulatory

Pan American expects to make a formal offer to its Debenture
holders prior to the end of March. Precise details of the formal
offer will be set out in a future press release. The offer will
be open for 30 days and will not be subject to any minimum
amount of debentures being converted.

Investors holding approximately 50% of the outstanding principal
amount of Debentures have indicated that they would be amenable
to the conversion of their Debentures upon a formal offer being
made. Pan American will make no payment in respect of the
conversion of any Debentures prior to the issuance of its formal

CONTACT: Brenda Radies, VP Corporate Relations (604) 684-1175.


PDVSA: Denies Signing 'Formal' Agreement with NB Power
Venezuelan state-owned oil company Petroleos de Venezuela SA has
not signed a "formal" contract with Canadian electricity
generator NB, Dow Jones reports, citing PDVSA President Ali

"No document has been signed," said Ali Rodriguez. "A letter of
very generic terms was signed in which there is no obligation,
and where the possibility of signing a contract remains open
without a set date. It's not a formal contract."

Mr. Rodriguez issued the comments in response to a suit launched
recently by NB Power against PDVSA.  He said Canada's own energy
officials have said that the utility's plants "are in a full
state of decay, and don't comply with the (country's)
environmental standards, requiring major investments, as it's

Those investments, he stressed, were to retool the plant to
bring it into compliance with environmental standards, not so
that it can run on Venezuela's extra-heavy crude, called
Orimulsion. The problem between NB Power and PDVSA revolves
around the price that NB will pay for the Orimulsion, he added.

"We don't want to affect the Canadians, but we also don't want
to affect the Venezuelan economy," he said. He noted that PdVSA
and NB Power aren't currently talking, but said PDVSA is
perfectly willing to negotiate with the Canadian firm.


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

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