TCRLA_Public/040714.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, July 14, 2004, Vol. 5, Issue 138

                            Headlines

A R G E N T I N A

AVICOLA CASADEI: Trustee Readies Report for Submission
ADVINTON: Verification Deadline Approaches
BRAND CENTER: Seeks Reorganization
INDUSTRIAS BRAGADO: Trustee Wraps-Up Verification Period
KIRIOS: Individual Reports Finalized

OBRADOR: Claims Verification Ends
POWER PRINT: Judge Approves Bankruptcy
PUBLICACIONES Y NEGOCIOS: Trustee Closes Claims Verification
SCHEIN S.A.: Court Declares Company Bankrupt
TELE MUSIC: Enters Bankruptcy on Court Orders

* GCAB Seeks Backing to Block Argentina's Debt Proposal


B E R M U D A

LORAL SPACE: Shareholders Seek "Official" Status in Bankruptcy


B R A Z I L

COPEL: To Set Up Emergency Power Poles
ELETROPAULO METROPOLITANA: Merrill Raises Stock Recommendation


D O M I N I C A N   R E P U B L I C

* Dominican Republic's New Tax Bill Submitted to Congress


M E X I C O

AHMSA: Board Member, Ex-Chairman Detained in Spain
GRUPO MEXICO: Deals With Striking Workers
TV AZTECA: Will Help in SEC Fraud Probe   


P E R U

AERO CONTINENTE: Grounded Upon Failure to Find New Insurer


V E N E Z U E L A

PDVSA: Unit's Debt Offer Spurs Apprehension
PDVSA: Reveals $418M Budget for V Business Round

     -  -  -  -  -  -  -  -

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

AVICOLA CASADEI: Trustee Readies Report for Submission
------------------------------------------------------
The general report on the ongoing bankruptcy of Avicola Casadei
S.R.L. will be presented in court on July 15, 2004. Mr.
Francisco A. Lofuedo, the court-appointed trustee supervising
the liquidation, will prepare this report from the Company's
accounting and business records.

San Isidro Court No. 7, assisted by Clerk No. 13, has
jurisdiction over this case, which will close with the
liquidation of the Company's assets to repay creditors.

CONTACT:  Mr. Francisco A. Lofeudo, Trustee
          Laprida 57
          San Isidro   


ADVINTON: Verification Deadline Approaches
------------------------------------------
The validation of creditors claims for the Advinton S.A.
bankruptcy is set to end on July 15, 2004. All parties with
outstanding claims against the bankrupt company must present
proofs of the indebtedness to Mr. Santiago Manuel Quiben before
the said deadline.

Following verifications, the trustee will prepare and submit
individual reports for court approval on September 10, 2004.
These reports explain
the basis for the approved and rejected claims.

A general report containing details of the bankruptcy
proceedings will also be presented for court review on November
25, 2004.

Buenos Aires Court No. 3 handles this case.

CONTACT: Advinton S.A.
         Montevideo 153
         Buenos Aires

         Mr. Santiago Manuel Quiben, Trustee
         Esmeralda 783
         Buenos Aires


BRAND CENTER: Seeks Reorganization
----------------------------------
Brand Center S.A., a company based in Buenos Aires, has
requested for reorganization after defaulting on its debt
payments.

The reorganization petition, once approved by the court, will
allow the company to negotiate a settlement with its creditors
in order to avoid a straight liquidation.

The case is pending before Judge Bargallo of Court No. 11. Dr.
Sanchez Cannavo, Clerk of Court No. 22, assists on this case.

CONTACT: Brand Center S.A.
         Rodriguez Pena 434
         Buenos Aires


INDUSTRIAS BRAGADO: Trustee Wraps-Up Verification Period
--------------------------------------------------------
Mr. Daniel Altman, the trustee assigned on the Industrias
Bragado S.R.L. bankruptcy, will review claims forwarded by the
Company's creditors until July 14, 2004.

Creditors must have their claims authenticated by the trustee
before the said date in order to qualify for the payments that
will be made after the Company's assets are liquidated.

The bankruptcy order was issued against the Company after it
defaulted on a US$2,293 debt to Stawila S.A.

CONTACT:  Industrias Bragado S.R.L.
          Parana 275
          Buenos Aires

          Mr. Daniel Altman, Trustee
          Parana 774
          Buenos Aires


KIRIOS: Individual Reports Finalized
------------------------------------
Mr. Miguel Angel Marceesi, the trustee supervising the
liquidation of Kirios S.A., is scheduled to submit the
individual reports for the case on July 15, 2004. Afterwards,
the submission of the general report will follow on September
10, 2004.

The Company's bankruptcy case will close with the liquidation of
its assets to repay creditors.

CONTACT:  Mr. Miguel Angel Marceesi, Trustee
          Avellaneda 1135
          Buenos Aires


OBRADOR: Claims Verification Ends
---------------------------------
Obrador S.R.L. nears the completion of its liquidation after the
claims verification period ends on July 14, 2004. Mr. Luis
Rolando Benedossi, the trustee, will review all forwarded claims
and submit them in court as individual reports on September 10,
2004.

Buenos Aires Court No. 6, assisted by Clerk No. 11, has
jurisdiction over this case.

CONTACT: Mr. Luis Rolando Benedossi, Trustee
         Bernardo de Irigoyen 330
         Buenos Aires


POWER PRINT: Judge Approves Bankruptcy
--------------------------------------
Power Print S.A. was declared bankrupt after Judge Tallade of
Buenos Aires Court No. 20 endorsed a creditor's petition for the
company's liquidation. Argentine daily La Nacion reports that
the creditor, 3M Argentina Sacifia, has claims totaling
US$342,869.30 against the Company.

The court, assisted by Clerk No. 40 Dr. Perillo, assigned Mr.
Bernardo Mazer to supervise the liquidation process as trustee.
He will validate creditors' proofs of claims until September 28,
2004.

CONTACT: Power Print S.A.
         Salta 596
         Buenos Aires

         Mr. Bernardo Mazer, Trustee
         Avenida Corrientes 4434
         Buenos Aires


PUBLICACIONES Y NEGOCIOS: Trustee Closes Claims Verification
------------------------------------------------------------
All creditors of bankrupt Argentine company Publicaciones y
Negocios Internacionales S.A. must present proofs of their
claims to Ms. Cecilia B. Montelvetti, the court-appointed
trustee, before July 15, 2004.

These claims will be the basis for the individual reports to be
presented for court approval on September 9, 2004. Afterwards,
the trustee will also submit a general report on October 21,
2004.

CONTACT: Ms. Cecilia B. Montelvetti, Trustee
         General Urquiza 2134
         Buenos Aires


SCHEIN S.A.: Court Declares Company Bankrupt
---------------------------------------------
Judge Paez Castaneda of Buenos Aires Court No. 21 declared local
company Schein S.A. bankrupt, relates La Nacion. Cooperativa
Concred de Credito y Vivienda Ltda. filed the liquidation
petition in order to recover ARS3774 in past due debt.

The Company will undergo the bankruptcy process under the
direction of Mr. Manuel Mansanta, the trustee. Creditors are
required to present their proofs of claims to the trustee for
verification before November 3, 2004.

Dr. Rey, Clerk No. 41, assists the court on the case.

CONTACT: Schein S.A.
         Avenida Rivadavia 6249
         Buenos Aires

         Mr. Manuel Mansanta, Trustee
         Avenida Cordoba 1351
         Buenos Aires


TELE MUSIC: Enters Bankruptcy on Court Orders
---------------------------------------------
Tele Music S.A begins the liquidation process after Judge
Taillade of Buenos Aires Court No. 20 issued a bankruptcy order
against the company. Mr. Hector Vazquez filed the bankruptcy
petition for non-payment of a US$8,155.47 debt.

The pronouncement effectively transfers control of the company's
assets to the court-appointed trustee who will supervise the
liquidation proceedings.

La Nacion reports that the court selected Mr. Luis Alberto
Rementeria as trustee. He will be verifying creditors' proofs of
claims until the end of the verification phase on September 13,
2004.

CONTACT: Tele Music S.A.
         Talcahuano 216
         Buenos Aires

         Mr. Luis Alberto Rementeria, Trustee
         Piedras 1314
         Buenos Aires


* GCAB Seeks Backing to Block Argentina's Debt Proposal
-------------------------------------------------------
The Global Committee of Argentina Bondholders (GCAB), the
largest international creditor group holding about one third of
the US$100 billion in defaulted debt, is intensifying efforts to
gain strong support from other bondholder groups to block the
ailing government's debt restructuring plans.

According to Dow Jones Newswires, the GCAB will launch a world
tour to present its own, more-optimistic forecasts of potential
payment flows out of Argentina.

The group, in a statement, said presentations to fellow
bondholders would begin in the U.S. and would then be followed
by similar events in Europe and Asia.

"The proposal recently outlined by Argentina with the Securities
and Exchange Commission is clearly inconsistent with other
sovereign restructurings and fails to balance the debt
forgiveness being asked of bondholders with a genuine
willingness to pay on the part of Argentina," the statement
said.

GCAB officials say the group's own analysis of Argentina's
"capacity to pay" resulted in a restructuring proposal that is
effectively three times as generous as what has been proposed by
Argentina. They say that the macroeconomic and fiscal
assumptions contained in the country's proposal leave out
important details that would boost its payment capacity.

Argentina is proposing cuts in principal amounts, reductions in
interest rates and extensions in maturity dates that, when
combined, would impose on bondholders a 75% reduction on their
investments.



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B E R M U D A
=============

LORAL SPACE: Shareholders Seek "Official" Status in Bankruptcy
--------------------------------------------------------------
A group of shareholders in bankrupt Loral Space & Communications
Ltd. (OTC BB:LRLSQ.OB) is claiming that the satellite company is
not insolvent and may have underestimated its market value by as
much as US$878 million.

In court filings made last week, the group, which claim to hold
about 3.5% of Loral's stock, said that Loral's filing for
Chapter 11 bankruptcy was unnecessary and fraudulent and the
Company has repeatedly omitted or minimized assets on its
balance sheets.

Loral, which filed for bankruptcy in July 2003, has stated in
regulatory filings that its equity will likely have no value
after its reorganization is submitted to the court in coming
months.

However, the shareholders group disputes Loral's appraisals,
setting the stage for a bankruptcy court valuation dispute.

The group plans to argue in U.S. bankruptcy court on July 27
that it should be accorded "official" status, meaning it can
hire legal and financial advisors at company expense to press
their claims. The stockholder group said it needs its own
official panel because the creditors committee and company
management aren't doing the job, or providing a fair valuation,
which would result in a return for stockholders.



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

COPEL: To Set Up Emergency Power Poles
--------------------------------------
Brazil's Parana state integrated power company Copel, which has
6,900km of transmission lines, plans to invest BRL2.8 million
(US$923,000) on emergency power transmission poles, reports
Business News Americas.

These poles, which weigh less, and are easier and faster to
install than regular transmission poles, will be used in the
event of storms or accidents cutting power.

Copel was recently granted a 14.43% rate increase by the
electricity regulator ANEEL (National Agency of Electric
Energy).

CONTACT:  Cia Paranaense de Energia
          Rua Colonel Dulcidio, 800
          Batel
          80420-170 Curitibia - PR
          Brazil
          Phone: +55 41 322-3535
          Fax  +55 41 224-4312
          Home Page: http://www.copel.com


ELETROPAULO METROPOLITANA: Merrill Raises Stock Recommendation
--------------------------------------------------------------
The recent concluded debt-restructuring of Eletropaulo
Metropolitana SA drove Merrill Lynch to raise its stock
recommendation on the Brazilian power distributor to neutral
from sell, says Dow Jones Newswires.

In terms of valuation, although Eletropaulo is currently trading
nearly in line with other Brazilian utilities, "relative to its
history, the stock is trading at levels below historic averages,
which does not seem aggressive," Merrill said.

But because of high debt levels at Eletropaulo, "we think that
the stock should not trade at levels significantly above those
of its Brazilian peers," it added. "As a result, we think upside
is somewhat limited from here."

Eletropaulo is controlled by US power company AES Corp
(NYSE:AES) and operates in the city of Sao Paulo and the
surrounding region.

CONTACT:  ELETROPAULO METROPOLITANA
          Avenida Alfredo Egidio de Souza Aranha 100-B,
          13 andar 04726-270 San Paulo
          Brazil
          Phone: +55-11-548-9461, +55 11 5696 3595
          Fax: +55-11-546-1933
          URL: http://www.eletropaulo.com.br
          Contacts:
          Luiz D. Travesso, Chairman and President
          Orestes Gonzalves Jr., VP Finance/Investor Relations



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

* Dominican Republic's New Tax Bill Submitted to Congress
---------------------------------------------------------
The Dominican Republic hopes to reverse its fortunes with a
comprehensive tax reform bill that promises to recoup US$500
million this year to cover the country's deficit and repay debt,
says the Associated Press.

Outgoing president Hipolita Mejia said that the new fiscal
scheme, submitted to congress yesterday, incorporates proposals
from the International Monetary Fund.

Among other changes, the reform will establish a 15 percent tax
on interest from savings, a 20 percent tax on alcohol and
tobacco, a 5 percent hotel tax, a 16 percent tax on air and sea
travel and a 10 percent tax on telecommunications services. In
addition, sales tax will also be raised from 12 percent to 16
percent.

The Caribbean state is battling inflation, which is now near 30
percent, severe power outages and rising unemployment.
President-elect Leonel Fernandez is set to inherit a US$7.6
billion debt when he assumes the post on August 16.  

IMF, which recently released a US$600 million loan, has
suspended payments until the government can better control
inflation.



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

AHMSA: Board Member, Ex-Chairman Detained in Spain
--------------------------------------------------
Xavier Autrey, former chairman of Mexican steelmaker Altos
Hornos de Mexico SA, was arrested in Spain together with another
board member at the request of Mexican judicial authorities,
reports Dow Jones Newswires.

Autrey and Juan Carlos Carredano are facing tax fraud
allegations lodged against them by the Mexican government. In a
press release, Ahmsa said the two executives were in Spain as
Spanish citizens, and had both begun legal proceedings there to
disqualify the allegations against them.

According to the Company, the taxes in question were paid in
full with interest and fines, and that four injunctions were
granted against the charges by Mexican courts.

But the government has appealed against the injunctions and
continued with the warrants, Ahmsa added, saying the government
was using the tax accusations to pressure the Company and favor
its creditors.

Ahmsa defaulted on US$1.8 billion in debt in 1999 and obtained a
suspension of payments under old bankruptcy laws that favored
debtors over creditors in cases of default, and which have since
been changed.


GRUPO MEXICO: Deals With Striking Workers
-----------------------------------------
Grupo Mexico's La Caridad mine and smelter in the northwester
state of Sonora closed down Monday following a strike lodged by
the mine's workers, reports Dow Jones Newswires.

The National Mining, Metallurgical and Similar Workers Union
said that the workers instigated the strike demanding that Grupo
Mexico make profitsharing, payment of overtime and temporary
promotions.

In addition, the striking workers are seeking an improvement in
safety measures and a return in the size of work crews to
between 11 and 14 workers from the current six or seven.

The union said the crews have been cut down in number in the
past two years, increasing the risk of accidents.

Grupo Mexico has offered to take the dispute through legal
channels under which it would be obliged to resolve the demands.
However, the workers rejected the offer, saying it included no
details of how or when demands would be met.


TV AZTECA: Will Help in SEC Fraud Probe   
---------------------------------------
TV Azteca says it will cooperate fully with the U.S. Securities
and Exchange Commission on inquiries over fraudulent activities
entered into by the chairman of an affiliate company, Unefon
S.A.

To aid the investigations, the S.E.C. has requested for
documents and testimony relating to financing transactions
between Unefon, Nortel Networks Corporation and Codisco
Investments L.L.C.

Dow Jones Newswires reports that the S.E.C. filed fraud charges
against Mr. Moises Saba Masri, Unefon Chairman, and Mr. Albert
Sutton, a broker at Middlegate Securities in New York, on
allegations that they manipulated TV Azteca stock prices on
August 20, 1999 in order to avoid a US$4.3 million payment for
an expiring short put option.      

The S.E.C. claims that Mr. Saba used Tentafin Ltd., a
corporation owned by his family, to trade his TV Azteca shares.



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

AERO CONTINENTE: Grounded Upon Failure to Find New Insurer
----------------------------------------------------------
Peru's Ministry of Transportation and Communications grounded
Monday the nation's leading airline, Aero Continente.

The move came after the airline failed to find an insurance
policy to replace the one, which expired Saturday.

The Peruvian government had said Saturday it would offer a
temporary government-sponsored insurance policy, permitting the
airline to continue flying. But in a statement Monday, the
Transportation Ministry said that the government and the airline
had been unable to find a replacement insurer.

"As a consequence and with the aim of guaranteeing the security
and peace of mind of the thousands of customers who use the
service, the Ministry has proceeded to suspend AeroContinente's
flights," it said.

AeroContinente's problems deepened June 1, when the U.S.
government placed its founder, Fernando Zevallos, on its list of
overseas drug kingpins. The U.S. also froze assets and
prohibited U.S. businesses and citizens from having any contact
with the airline, meaning the airline's insurance company,
Global Aerospace, had to end its relationship. Global Aerospace
is partially owned by U.S. interests.



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

PDVSA: Unit's Debt Offer Spurs Apprehension
-------------------------------------------
The offer launched by PDVSA Finance Ltd., the financial division
of state-owned oil holding Petroleos de Venezuela SA (PdVSA), to
repurchase US$2.6 billion in bonds has raised several doubts.

Even though few bondholders and analysts doubt that the offer
will have success, they wonder if the deal is opportune and if
it will have an impact on PdVSA's capacity to issue debt at
attractive prices in the future.

Many analysts wonder why PDVSA would want to launch such an
offer when its debt profile is easy to deal with and the Company
is way behind in its capital expending plans. The attractive
price of the offer and the sudden increase in the demand for
bonds during the previous weeks to the announcement have also
raised doubts.

On June 28, PdVSA Finance launched an offer to repurchase 9
series of notes for a total of US$2.6 billion. Seven of tranches
are over par and two are under par, while the weighted average
is 103%, or 3% over par. Those investors that accept the offer
within 10 working days will receive a plus of up to US$3 per
US$100 of debt tendered for purchase. The offer, which includes
notes with maturity between 2006 and 2028, is set to expire on
July 26. J.P. Morgan and Deutsche Bank are the coordinating
agents for this offer.

Standard & Poor's placed its B+ credit rating on PdVSA's debt on
CreditWatch with negative implications, while Moody's kept its
Caa1 rating after the announcement of the offer.

Despite the criticism, it is expected that most of the
bondholders will accept the offer.


PDVSA: Reveals $418M Budget for V Business Round
------------------------------------------------
PDVSA plans to spend VEB800 billion (US$418mn) to buy goods and
services at the V business round which will run from today, July
14, until the 16th, government news agency Venpres reports,
citing PDVSA VP Mr. Felix Rodriguez.

The business rounds are a chance for small- and medium-sized
companies to do business with PDVSA. According to Rodriguez, the
upcoming round will be "exceptional" because the government
wants to substitute many imported goods with domestically
produced goods.

Meanwhile, PDVSA's internal director Dester Rodriguez revealed
in a statement that the Company has budgeted VEB38 billion
(US$19.8mn) for the national paving plan. The plan is designed
to improve rural and urban transport in the country, which has
deteriorated after years of neglect and lack of investment,
Rodriguez said.



                            ***********


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
Lucilo Junior M. Pinili, Editors.

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

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