/raid1/www/Hosts/bankrupt/TCRLA_Public/010504.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

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

            Friday, May 4, 2001, Vol. 2, Issue 88

                           Headlines


A N T I G U A  &   B A R B U D A

LIAT LTD.: Prime Minister Says Cut Workforce For Profitability


A R G E N T I N A

ACINDAR: Confident Of Recovery In Third Quarter This Year
AEROLINEAS ARGENTINAS: APTA, Labor Minister Seek Intervention


B R A Z I L

BANESPA: Reports 1Q01 Results Better Under BSCH Control
CESP: VBC Energia, EDP To Participate In Bidding
CVRD: Concludes Sale Of Bahia Sul
PSINET: To Default On Interest Payments
PSINET: Management,Board Changes; Restructuring Committee Formed


C O L O M B I A

TERMOEMCALI: S&P Affirms `CCC' Rating; Off Watch


M E X I C O

CHRYSLER: Reports U.S. April Sales Down 18 Percent
CINTRA: 1Q01 Results Show P$443 Million Loss
ELAMEX: 1Q01 Results: Sales Off 30 Percent, Loses $7 Million
GRUPO SIMEC: Final (Audited) Operating Results For YE 12/31/00
MAXCOM TELECOMUNICACIONES: 1Q01 Results Better Than Last Year
MAXCOM TELECOMUNICACIONES: Sets Aside Cash For Interest Payments
MINERA AUTLAN: Posted P$47.11M Loss In 1Q01


P E R U

AUSTRAL GROUP: Expects To Turn Last Year's Loss Into Profit


     - - - - - - - - - -


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A N T I G U A  &   B A R B U D A
================================

LIAT LTD.: Prime Minister Says Cut Workforce For Profitability
--------------------------------------------------------------
Cash-starved regional LIAT (1974) Ltd. recently proposed to
convert the 20 million Eastern Caribbean dollars (US$7.4 million)
owed to regional governments for landing and navigational fees
into equity, Caribbean News Agency reported Monday. However, the
proposal, which got the support of the newly-elected St Vincent
and the Grenadines' Prime Minister, Dr Ralph Gonsalves, would not
be enough to resolve the money woes of the carrier, according to
Grenada's Prime Minister, Dr Keith Mitchell. Mitchell stressed
LIAT needs to trim down its workforce if it really wants to
restore profitability in the company.

"I think LIAT, like the OECS (Organisation of Eastern Caribbean
States) has to come to terms with its large bureaucracy and its
bloated staff," Dr. Mitchell said.

LIAT has had, in recent times, to turn to the Antigua and Barbuda
government for loans to pay salaries.



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

ACINDAR: Confident Of Recovery In Third Quarter This Year
---------------------------------------------------------
Amid recent market turmoil, Jorge Videla, director of Argentine
steel maker Acindar, expressed confidence that the company could
recover from its recent losses as soon as third quarter, Reuters
reported Monday.

"We don't see recovery this (second) quarter," Videla said.
"Maybe new economic measures will create more calm in the markets
so that later there can be economic recovery but that won't
happen in less than 60 days."

"We were estimating the recessive situation was going to begin to
improve during March and April, but after the ministerial
changes, policy announcements and fears about default, the only
thing we've seen here is greater uncertainty and a real fall in
sales," Videla said. "But we still have to remain optimistic," he
added.

Acindar, Argentina's largest non-flat steel product maker, last
week posted net losses totaling $100.1 million in the nine months
to March 31, 2001. Losses for the three months up to March 31,
2001 were $59 million. As part of its strategy to overcome
losses, it issued a four-year, $60-million bond, due by the end
of next week.

Acindar, which currently faces debts of around $400 million, was
negatively impacted by its decision to invest in lamination
equipment. The company has subsequently been forced to sell the
equipment for an estimated loss of $17 million, Videla said. But
analysts seemed hopeful that, given a brighter economic climate,
the steel maker would be quick to pull itself out of the red.

"This is a capital-intensive company that's suffering the low
level of the three sector it serves: construction, agriculture,
and auto industries," said Rafael Ber, analyst for the Argentine
Research.

"With the (national) infrastructure plan and if Argentina's
economy can take off, the sales volume problem will recover
slowly," Ber added.


AEROLINEAS ARGENTINAS: APTA, Labor Minister Seek Intervention
-------------------------------------------------------------
Flights of Sociedad Estatal de Participaciones Industriales
(SEPI) units, Aerolineas Argentinas SA and Austral, remain
grounded at the international and domestic airports at the
capital as maintenance crews continue with their indefinite
strike to protest the sacking of 220 workers, AFX Europe reported
Wednesday.

Ricardo Cirielli, the secretary general of the APTA maintenance
crew union, called on Economy Minister Domingo Cavallo to seek
intervention by the Spanish government to resolve the dispute.
Labour Minister Patricia Bullrich suggested the same citing that
the Argentine state is not in conditions to take over the company
because of its "very difficult economic situation."

"There has to be a project whereby (Aerolineas) becomes a company
that really develops," Bullrich said, adding, "this is one of the
issues we want the Argentine government to speak about with the
Spanish government."

Bullrich expects that a worst-case scenario could happen within a
month, saying that the company could disappear. She urges to find
a solution right away whereby the company does not disappear and
the workers do not appear as those responsible for Aerolineas not
working.



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

BANESPA: Reports 1Q01 Results Better Under BSCH Control
-------------------------------------------------------
Banco do Estado de Sao Paulo (Banespa) reported US$60 million in
net profits in the first quarter of this year, South American
Business Information revealed Wednesday. Spanish bank Banco
Santander Central Hispano (BSCH), which took control of the bank
in November, increased profits by 38.29 percent in the period
totaling US$599 million in net profits. Banco Santander Brasil
and Santander Meridional reportedly contributed US$56 million to  
its performance. Santander anticipates that Banespa will end this
year with US$250 million - US$300 million in net profits.


CESP: VBC Energia, EDP To Participate In Bidding
------------------------------------------------
VBC Energia SA, a Brazilian holding company for power utilities,
revealed plans to participate in the bidding for the control of
Cia. Energetica de Sao Paulo (Cesp) when it is put on the auction
block on May 16 with a minimum price of 1.74 billion reais ($779
million), Bloomberg said Wednesday.

"VBC plans to take part in the auction but it has not decided yet
how it will do it," said Caique Paes de Barros, a spokesman for
the company in Sao Paulo.

The company plans to deliver documents May 3 to the Sao Paulo
state government in order to qualify for the auction of Cesp. May
3 is the last day for companies to qualify to bid.

This will be the second time the state attempts to sell Cesp,
after its December auction failed to attract bidders due to
problems such as the lack of water in the reservoir of its Porto
Primavera hydroelectric plant. Barros said VBC, which did not
send documents in the first attempt to sell Cesp, changed its
mind because the state managed to fill the Porto Primavera
reservoir with water and roll over the utility's short-term debt.

Meanwhile, Electricidade de Portugal SA (EDP), which controls
power distributor Empresa Bandeirante de Energia SA in Sao Paulo,
also plans to bid for Cesp, said Fernando Escariz, a spokesman
for EDP in Brazil.


CVRD: Concludes Sale Of Bahia Sul
---------------------------------
On February 22, 2001, Companhia Vale do Rio Doce (CVRD) signed a
contract with Companhia Suzano de Papel e Celulose (Suzano) for
the purchase and sale of shares by which it agreed the transfer
of the whole of its shareholding in Bahia Sul Celulose S.A.
(Bahia Sul), represented by 682,178,428 common shares and
347,224,408 preferred class A shares, representing 50% of the
voting capital and 18.94% of the preferred capital respectively.

The amount agreed for the transfer of the whole shareholding
position totaled the equivalent in reais of US$320,000,000.00,
being

US$317,600,000.00 for the shares and the remainder corresponding
to outstanding dividends relating to year 2000, attributed to
CVRD and its subsidiary Florestas Rio Doce S.A.

The conclusion of the transaction was subject to some suspensive
conditions, including the consent of BNDES Participacoes S.A.
(BNDESPAR), under the terms of the Shareholder Agreement signed
on March 20, 1989 among BNDESPAR, CVRD and Suzano.

Considering that all the referred conditions were implemented on
April 27, 2001, according to the contract for the purchase and
sale of shares, the financial settlement, in the equivalent in
reais of US$317,600,000.00, should happen Monday, May 7, 2001.

In this way, Suzano, as the acquirer, will hold all the voting
capital of Bahia Sul.

This transaction constitutes the first step taken by CVRD towards
withdrawing from the pulp and paper industry, contributing to its
restructuring. CVRD therefore confirms its strategy of focusing
in mining and logistics.


PSINet: To Default On Interest Payments
---------------------------------------
PSINet Inc. (OTCBB:PSIX-news) today announced that it will
default on a $20.1 million interest payment on its 11-1/2% Senior
Notes due May 1, 2001, and will not make its May equipment lease
and note payments, which total $16.6 million.

"Our company and its employees will continue to provide the
outstanding service that our customers have come to expect from
us," said Harry Hobbs, President and Chief Executive Officer of
PSINet. "The actions announced today will help preserve cash
while we pursue restructuring alternatives that assure the long-
term viability of our assets and businesses, and address the
requirements of our creditors."

On April 30, 2001, the Company announced the formation of a
restructuring committee of the Board of Directors in order to
more effectively facilitate a reorganization of the Company's
business. At the same time, Mr. Hobbs was appointed Chief
Executive Officer and a member of the Board, in addition to his
title as President.

Interest payments of $31.5 million and 7.9 million euros are due
on the Company's 10-1/2% Senior Notes on June 1, 2001. Equipment
lease and note payments totaling $16.5 million are also due in
June.


PSINET: Management,Board Changes; Restructuring Committee Formed
----------------------------------------------------------------
PSINet Inc. (OTCBB: PSIX) today announced several significant
appointments designed to strengthen its operations and manage its
restructuring efforts.

Harry G. Hobbs has been appointed Chief Executive Officer,
replacing William L. Schrader. Mr. Hobbs has also been named to
the Company's Board of Directors. Mr. Hobbs has served PSINet in
various capacities since 1997, most recently as President and
Chief Operating Officer, and has been instrumental in efforts
over the past several months to streamline the Company's
operations. In his expanded position, Mr. Hobbs will focus
primarily on developing and executing a business plan aimed at
moving PSINet through its restructuring.

The Company also announced that Lawrence E. Hyatt, the Company's
Executive Vice President and chief financial officer, has assumed
the additional responsibility of chief restructuring officer,
working closely with bondholders and other creditors in
addressing options to rationalize the balance sheet. Kathleen B.
Horne, the Company's Executive Vice President and general
counsel, will also play an integral role in PSINet's
restructuring efforts.

The Company also announced that its Board of Directors has formed
a Restructuring Committee in order to facilitate the management
of the Company's restructuring efforts. This Committee will be
chaired by Ralph J. Swett and other members will include Mr.
Hobbs and Dr. William H. Baumer.

In addition, Ian Sharp has been named chairman of the Board of
Directors, succeeding Mr. Schrader, who will remain as a member
of the Board and serve the Company in an advisory capacity.

"Bill Schrader is one of the true pioneers of the commercial
Internet. His founding vision led PSINet to assemble valuable
assets, including one of the largest and most advanced global
networks and 16 state-of-the-art hosting centers," Mr. Sharp
said. "Given the changed circumstances within the marketplace and
the Company, we need to focus the Company's efforts on preserving
and enhancing this value. I am confident in our new team's
ability to achieve this objective."

Mr. Hobbs has served PSINet in various capacities since 1997 and
has been instrumental in streamlining its operations and
improving its customer service. He has over 25 years of
experience in the communications industry, primarily in
developing and implementing customer care programs for industry
pioneers, such as MCI and American Personal Communications, LP
("APC"). Before joining PSINet, Mr. Hobbs served as Vice
President of Customer Care for APC, a provider of wireless
communications services and an affiliate of Sprint PCS, from
February 1995 to August 1997. Prior to that, he served MCI for 17
years, holding a variety of positions in the Customer Service,
Operations and Large Account Support business units, including
vice president of Global Customer Service in the original Concert
Group.

Mr. Hyatt has over 25 years of financial operations experience.
Prior to joining PSINet in July 2000, Mr. Hyatt was a top
financial executive within the Marriott family of companies for
nearly 20 years, most recently serving as chief financial officer
for Sodexho Marriott Services, Inc. and HMSHost Corporation. Ms.
Horne has served the Company since 1996. Prior to joining
PSINet's in-house legal team in 1996, Ms. Horne practiced
corporate and securities law as a partner in the New York City
office of Nixon, Hargrave, Devans & Doyle LLP, where she
specialized in mergers and acquisitions, corporate finance and
securities transactions.

As previously announced, PSINet's cash, cash equivalents, short-
term investments and marketable securities are not expected to be
sufficient to meet the Company's anticipated cash needs. The
Company and its advisors continue to analyze and pursue certain
financial and strategic alternatives, including the possible sale
of all or a portion of the Company, while also exploring
alternatives to restructure the Company's obligations to its
bondholders and other creditors. PSINet cannot provide any
assurance that even if any of such alternatives are implemented,
it will not run out of cash.

The Company will continue to be assisted by financial advisors
Dresdner Kleinwort Wasserstein and Goldman Sachs & Co.


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


TERMOEMCALI: S&P Affirms `CCC' Rating; Off Watch
------------------------------------------------
Standard & Poor's today affirmed its triple-'C' foreign currency
rating on TermoEmcali Funding Corp.'s (TermoEmcali) US$165
million senior-secured bonds due 2014. Standard & Poor's also
affirmed its triple-'C' foreign and local currency ratings on
Empresas Municipales de Cali S.A.'s (Emcali). The outlook is
negative.

The ratings have been removed from CreditWatch with developing
implications where they were placed in April 2000. The
TermoEmcali project is dependent upon the rating of Emcali and
the CreditWatch placement reflected Standard & Poor's
expectations that the Superintendency of Public Services, a
Colombian federal agency, would address the financial crisis at
Emcali in a timely manner; however, after more than a full year
of managing the process, a definitive plan to address Emcali's
financial situation has not been made public. Therefore, the
outlook is negative because Standard & Poor's concludes that
bondholders face increasing risks as the process of resolving
Emcali's financial problems drags on.

The rating affirmations follow the news that TermoEmcali
management plans to grant a waiver to Emcali for noncompliance
with certain obligations under the Fiducia. Standard & Poor's
concludes that granting this waiver will not materially affect
the economics of the project, nor in and of itself, have an
effect on TermoEmcali's triple-'C' rating. Under the Fiducia,
Emcali is required to maintain a LOC equal to three months of
capacity and energy payments. TermoEmcali can draw upon this LOC
after an account has become 90 days past due. The amount required
by the Fiducia is now US$12.4 million, but the actual LOC is for
US$11.3 million. The US$800,000 increase is due to the increase
in capacity payments under the power purchase agreement (PPA).
TermoEmcali plans to grant Emcali a 60-day waiver that can be
revoked if Emcali is out of compliance with any of its other
obligations under the Fiducia and can be extended by TermoEmcali
if deemed prudent. To date, Emcali has honored its payment
obligations under the PPA, albeit by making late payments. Under
the PPA Emcali has 60 days from the receipt of an invoice to
remit payment. TermoEmcali's issuance of a notice of default
triggers a 30-day period to cure the failure to pay the invoice.
This 90-day billing cycle has occurred since the commencement of
commercial operations, and is expected to continue until Emcali's
financial crisis is resolved. TermoEmcali has sufficient
liquidity in the form of an undrawn six-month debt service
reserve, the pledged US$11.3 million LOC, and certain bank
accounts pledged by Emcali, representing less that two months of
capacity and energy payments.

The delay in the decision to resolve the financial debacle at
Emcali is centered on the opposing views of the federal
government of Colombia and city government of Cali. The federal
government, through the Superintendencia favors privatizing a
portion of the company, but the city would like the federal
government to infuse capital into Emcali and leave the company in
the hands of the city. The two sides have been working towards an
amiable resolution to the problem over the past 13 months,
without much success. The problem is compounded by the fact that
there are 14 other, smaller electric distribution companies in
Colombia that are under the control of the Superintendencia, with
problems similar to Emcali. Therefore, the decision made at
Emcali could set a precedent for the others. TermoEmcali
bondholders benefit from the fact that they must agree prior to
any sale of Emcali's assets that the new entity is not materially
less creditworthy than Emcali. Further, the bondholders can
preclude the transfer of any of Emcali's substantial assets;
however, because of Emcali's precarious financial situation, the
longer the status quo continues, the greater the potential for
Emcali to default on the payments under the PPA.

TermoEmcali is a 234 MW combined-cycle facility owned by
TermoEmcali I S.C.A. E.S.P. The owners of the project company
include Emcali, subsidiaries of InterGen (InterGen is owned by
subsidiaries of Bechtel Enterprises and Royal Dutch Shell), and
Corporacion Financiera del Pacifico, a local Cali business group.
The project's rating reflects the uncertainty about the cash flow
stream that will come from the sale of capacity and energy to
Emcali.

Emcali is a diversified, municipally owned utility providing
electricity, water, sewage, and local landline telephone service
to a population of about 2 million located in and around the city
of Cali.

OUTLOOK: NEGATIVE

The negative outlook anticipates a continued weakening of
Emcali's liquidity and ability to honor its payment obligations
to TermoEmcali, Standard & Poor's said.



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

CHRYSLER: Reports U.S. April Sales Down 18 Percent
--------------------------------------------------
Chrysler Group reported U.S. sales of 187,119 units in April
2001, compared to 228,992 in April 2000, which is a decline of 18
percent. "The last 10 days of the month saw a significant
increase in both showroom traffic and sales," said Gary Dilts,
Senior Vice President - Sales. "Even in the face of an uncertain
economy, that is a sign that the traditional Spring car-buying
season has arrived."

Leading the way were improved sales for the Chrysler Group line
of minivans -- the Chrysler Town and Country, Chrysler Voyager,
Dodge Caravan and Dodge Grand Caravan. Overall minivan sales were
up six percent, selling 38,299 units, compared to April 2000.
Town and Country sales jumped 76 percent with 11,589 units sold -
- a new April record. Dodge Caravan sales also increased, up
three percent over last year.

PT Cruiser, now in its second year on the market, beat the
previous April sales mark by 40 percent.

Other improvements showed Chrysler truck sales of 27,023 units,
up 34 percent over April last year, and Chrysler Sebring Coupe,
up 17 percent, with sales of 1,571 units.

"We just completed a 25-city tour where we discussed sales
objectives with dealers, and that feedback will help us better
align our performance goals," said Dilts.

Dilts added that co-marketing efforts between dealers were just
beginning to get off the ground, as well. The company began a new
"See. Drive. Compare." advertising campaign in April, and Dilts
expects that to be matched by dealer efforts to bring people into
the showrooms to compare products. "We've said that once people
get behind the wheel of many of our products, we shine," he said.
"The issue sometimes is getting them into the showroom ... and we
want to become even more successful at that in the months ahead."

The company is optimistic for the remainder of the year. The all-
new Jeep(R) Liberty is being launched this week, ahead of
schedule. "Initial reaction from dealers is that Jeep Liberty can
do for the Jeep brand what Chrysler PT Cruiser has done for the
Chrysler brand -- energize our dealer partners," said Dilts.

The company has the capacity to build more than 200,000 Jeep
Liberty units annually in its all-new one-billion dollar Toledo
(Ohio) North Assembly Plant. At full production, the plant will
employ more than 2,100 people and build 800 units per day.
Shipments of Jeep Liberty to dealers begin this week.

Chrysler Group reduced inventories in April 2001 to 471,557
units, a 28 percent reduction from April 2000, when it had
656,950 units in inventory. Inventory for April 2001 has shrunk
to a 63-day supply, compared to a 72-day supply in April 2000.


CINTRA: 1Q01 Results Show P$443 Million Loss
--------------------------------------------
Government-owned airline holding company Cintra posted a loss of
443.62 million pesos or 0.45 pesos per share for the quarter
ended March 31, 2001, compared with earnings of 0.17 pesos per
share, in the same period last year, Bloomberg reported
Wednesday. Its revenue stood at 6.97 billion pesos, compared with
7.29 billion pesos. Cintra, which controls leading carriers
Aeromexico and Mexicana, corners more than 70 percent of the
country's air transport industry. Late last year, it was declared
a monopoly and ordered to be broken up and sold by Mexico's
antitrust agency, the Federal Competition Commission (CFC).


ELAMEX: 1Q01 Results: Sales Off 30 Percent, Loses $7 Million
------------------------------------------------------------
Elamex, S.A. de C.V. (Nasdaq:ELAM) announced today its results
for the quarter ended March 30, 2001.

Sales decreased 30.3% to $35.8 million from $51.3 million in the
first quarter of the previous year. Net loss for the quarter
increased to $7.0 million from the $509,000 net loss reported for
the same quarter one year ago. Net loss per share for the first
quarter was $1.03 compared to the net loss per share of $0.07 for
the same period of last year. There were 6,866,100 outstanding
shares at the end of first quarter 2000 and 2001.

The decrease in net sales was primarily due to the elimination of
the EMS net sales of $17.1 million in the first quarter of 2000,
the EMS operation was sold in the second quarter of 2000. Sales
from the first quarter of 2001,excluding EMS sales, increased by
$1.6 million, or 4.6%, to $35.8 million from the $34.2 million
reported for the same period in 2000, primarily in the assembly
business.

The operating loss of $14.4 million for the first quarter of 2001
represents a $13.7 million increase in operating loss from the
$678,000 operating loss reported for the first quarter of 2000.
The operating loss for the first quarter 2001 is before minority
interest of $4.4 million as shown on the attached consolidated
income statement.

The increase in the operating loss for the first quarter of 2001
was primarily the result of the following:

-- A reserve of $5.6 million for the net cost associated with the
closing of the Juarez plant belonging to the Company's joint
venture with GE and previously announced in the press release
dated April 27. Elamex's share of this pretax loss is
approximately $2.8 million after the minority interest
adjustment.

-- The allowance for obsolete inventories in the same joint
venture was increased by $1.0 million as a result of the same
plant closing. This reserve is classified as a cost of goods sold
on the consolidated income statement. Elamex's share of this
pretax loss is approximately $501,000.

-- An impairment charge of $2.4 million, primarily related to the
JD Edwards computer system installation costs incurred in 1998.
The current Company business structure does not require the full
utilization of the JD Edwards system.

-- A reserve of $1.3 million for severance costs resulting from a
significant reduction in personnel at all levels of the Company.

-- Net loss of $904,000 in the first quarter resulting from the
ramp-up of the new plant in Celaya which belongs to the Company's
joint venture with GE. The sales volume of this plant has not
reached expectations due to lower than expected demand from its
primary customer. Elamex's share of this pretax loss is
approximately $450,000 after minority interest.

-- An increase in allowance for bad debts of $650,000.

-- A net increase of $1.8 million in operating losses from the
Company's operating units. The increase in the operating loss in
the first quarter 2001 was primarily due to the loss of revenue
in the Company's turnkey/shelter operations associated with
expired contracts or contracts which experienced reduced volumes
due to economic conditions. Furthermore, the Company did not
adequately reduce its expense base subsequent to the EMS sale in
anticipation of growing its non-electronic manufacturing
business, which did not materialize as planned.

As reported in this first quarter 2001 earnings release, the
Company has taken significant steps to reduce this excess expense
base. The Company also incurred operating losses associated with
a specific turnkey contract which experienced losses at the gross
margin level, this contract is being terminated during the second
quarter. Additionally, the Company experienced increased
operating expenses associated with the ramp-up of a new assembly
operation at its Kentucky metal stamping operation.

Other income of $2.1 million for the first quarter of 2001
represents an increase of $2.5 million from the $416,000 loss
reported for the same period a year ago. The increase of $2.5
million reflects the recognition of $2.4 million from the final
Optimag earn-out and the reduction in net interest expense of
$700,000, offset by a reduction of $600,000 related to a gain on
the sale of securities and other income recorded in the first
quarter of 2000.

"While we recognize the significance and impact of the net loss
of $7.0 million reported in the first quarter, it is important to
point out that the actions taken by the Company is consistent
with its plan to dispose of non-productive operations and
eliminate assets with questionable long-term value. We believe
that a substantial portion of the restructuring charges have been
identified and, where permitted by U.S. GAAP rules, reserved in
the first quarter.

In the second quarter 2001 it is anticipated that additional
costs associated with severance payments and other costs of
operations in process of closure and restructure have been
identified and will impact Elamex's bottom line in the
approximate amount of $1.1 million. It is the Company's intent to
bring its expense base in line with revenues, streamline
operations and identify business opportunities that will provide
long-term value to its shareholders, said Richard P. Spencer,
president and CEO of Elamex.

Elamex will conduct a group conference call on Thursday, May 3,
2001, at 11 a.m. ET to discuss first quarter 2001 results.

Elamex is a Mexican manufacturing service provider. The Company,
in addition to production of plastic and stamped metal
components, delivers high-quality finished assemblies to U.S. and
Canadian Original Equipment Manufacturers (OEM) in the consumer,
telecommunications, computer, industrial, medical and automotive
industries. Elamex participates in a high-growth industry, where
its unique competitive advantage results from its demonstrated
capability to leverage low cost, highly productive labor,
strategic North American locations, recognized world-class
quality and proven ability to combine high technology with labor
intensive manufacturing processes.


GRUPO SIMEC: Final (Audited) Operating Results For YE 12/31/00
--------------------------------------------------------------
Grupo Simec, S.A. de C.V. (Amex: SIM) ("Simec") announced today
its final (audited) results of operations for the year ended
December 31, 2000. Net sales decreased 6% to Ps. 2,203 million in
2000 compared to Ps. 2,340 million in 1999. Simec recorded
financial expense of Ps. 104 million in 2000 compared to
financial income of Ps. 167 million 1999 due principally to an
exchange loss of Ps. 16 million and a gain from monetary position
of Ps. 219 million in 2000 compared to an exchange gain of Ps.
123 million and a gain from monetary position of Ps. 351 million
in 1999; this resulted from a decrease of 0.6% in the value of
the peso versus the dollar and domestic inflation of 9% during
2000 compared to an increase of 3.6% in the value of the peso
versus the dollar and domestic inflation of 12.3% during 1999.
Primarily as a result of the foregoing, in 2000 the Company
recorded net loss of Ps. 36 million versus net income of Ps. 484
million for 1999.

On March 30, 2001, Grupo Sidek, S.A. de C.V. consummated the sale
of its entire approximate 62% controlling interest in Simec to
Industrias CH, S.A. de C.V. Additionally, Industrias CH, S.A. de
C.V. acquired additional common shares of certain of Simec's bank
creditors that, in connection with the transaction, converted
approximately US$95.4 million of bank debt (US$90.2 million of
principal and US$5.2 million of interest) into common shares of
Grupo Simec at a conversion price equivalent to US$3.87 per
American Depositary Share. As a result, Industrias CH holds an
approximate 82.5% interest in Simec.

In 2000, Simec sold its entire interest in Moly-Cop Mexico, S.A.
de C.V. ("Moly-Cop"), a 50% owned company that manufactures
grinding balls used principally by grinding mills in the mining,
cement and chemical industries to GS Industries Inc. for US$2.4
million. In 2000, Simec also sold its entire interest in Estral,
S.A. de C.V. ("Estral"), a wholly owned subsidiary that
manufactures light and structural steel racks for warehousing and
other industrial storage to Contenedores Industriales Mezquital,
S.A. de C.V. (90%) and to Mr. Arturo Gerardo Gonzalez Martinez
(10%) for $3.5 million, of which $3.15 million was paid in
December 2000 and $0.35 million will be paid in May 2001. In
accordance with Mexican GAAP and U.S. GAAP, the operations of
Moly-Cop (until May 2000) and Estral (until October 2000) were
accounted for as discontinued operations for the years ended
December 31, 2000 and 1999.

Simec sold 619,598 metric tons of basic steel products during
2000 as compared to 620,631 metric tons in 1999. Exports of basic
steel products decreased to 65,942 metric tons in 2000 from
91,151 metric tons in 1999. Prices of products sold in 2000
decreased 6% in real terms versus 1999.

Simec's direct cost of sales was Ps. 1,456 million in 2000, or
66% of net sales, versus Ps. 1,466 million, or 63% of net sales,
for 1999. Indirect manufacturing, selling, general and
administrative expenses (including depreciation) were Ps. 488
million in each of 2000 and 1999.

Simec's operating income decreased 33% to Ps. 259 million in 2000
from Ps. 386 million in 1999. As a percentage of net sales,
operating income was 12% in 2000 and 16% in 1999.

At December 31, 2000, Simec's total consolidated debt consisted
of approximately $274 million of U.S. dollar-denominated debt,
while at December 31, 1999, Simec had outstanding $304 million of
dollar-denominated debt; the decrease in total debt reflected the
payment of the first two semi-annual installments of principal on
the bank debt described below and on Compania Siderurgica de
Guadalajara's 10 1/2% Third Priority Notes due November 15, 2007
(as well as the payment in December 2000 of approximately US$4.0
million in satisfaction of a judgment entered against Simec with
respect to the non-payment of $2.96 million aggregate principal
amount of Simec's Medium-Term Notes due 1998, plus interest
thereon). Prior to the debt restructuring described in the
following two sentences, all of Simec's consolidated debt (other
than $622,000 of Simec's Medium-Term Notes due 1998 which remain
outstanding and unpaid) matured in November 2007 and had
principal amortizing in equal semi-annual installments which
began in May 2000, except for approximately US$70 million of non-
amortizing bank debt which matured in November 2009. On August
25, 2000, Simec and its bank creditors restructured US$224.9
million of Simec's then outstanding total of $226.8 million of
bank debt. The restructuring provided for, among other things,
(i) a two year extension with respect to the amortization of
US$134.7 million of bank debt, from 7 years to 9 years, with a
final maturity in November 2009 and a 0.75% increase in the
interest rate applicable to such bank debt and (ii) at the
Simec's election, the conversion of US$90.2 million of bank debt
into common shares of Simec based upon the price of approximately
US$0.1935 per share (approximately US$3.87 per American
Depositary Share), which election was made in conjunction with
the sale by Grupo Sidek, S.A. de C.V. on March 30, 2001 of its
entire approximate 62% controlling interest in Simec to
Industrias CH, S.A. de C.V.

All figures were prepared in accordance with Mexican generally
accepted accounting principles and are stated in constant Pesos
at December 31, 2000.

Simec is a mini-mill steel producer in Mexico and manufactures a
broad range of non-flat structural steel products.


MAXCOM TELECOMUNICACIONES: 1Q01 Results Better Than Last Year
----------------------------------------------------------------

Maxcom Telecomunicaciones, S.A. de C.V., a facilities-based
telecommunications provider (CLEC) using a "smart build" approach
to focus on small- and medium-sized businesses and residential
customers in Mexico City and Puebla, today announced its
unaudited results for the first quarter of 2001.

REVENUES

Revenues for 1Q01 were Ps$62.9 million, an increase of 24% from
Ps$50.9 million registered in 1Q00. This change reflects a 21%
increase in average lines combined with a 6% increase in ARPU.
Company ARPUs rose from Ps$740 in 1Q00 to Ps$786 at the end of
1Q01.

Conversely, revenues for 1Q01 decreased 13% from Ps$72.1 million
reported in 4Q00. The decline is explained by:

1) Lower Company ARPUs, affected in turn by:
a) A higher ratio of SME and residential lines to total lines;
and,
b) Lower recurring charges for Troncalmax products.

2) Lower long distance traffic, which affected long distance
revenues.

NOTE: Maxcom commenced commercial operations on May 1, 1999;
therefore, during 2000 a comparison with 1999 was not meaningful.
Effective first quarter of the year 2001, Maxcom will be
comparing its reporting periods to the same quarter of the
previous year. In some cases throughout this document references
will be made to the three-month period ended on December 31,
2000. Financial statements are reported in period-end pesos as of
March 31, 2001 and adjusted for the inter-period effect of
inflation.

Backlog as of March 31, 2001 was 8,917 lines.

LINES

During 1Q01, 6,024 new lines were installed and 4,582 lines were
disconnected. The net number of lines at the end of 1Q01
increased 6% to 28,352, when compared to 26,855 lines at the end
of 1Q00.

COST OF NETWORK SERVICES

Cost of Network Services is comprised of the following: (1)
reselling costs; (2) leased dedicated circuits' costs; and, (3)
interconnection costs to carriers other than Telmex.

Cost of Network Services for the first quarter is shown below:

PS$ million                 1Q00      4Q00       1Q01
Reselling costs             17.3       8.2       5.9
Leased circuits              8.5       2.1       4.6
Interconnection              5.0       4.6       4.7
TOTAL                       30.8      14.9      15.2

Cost of Network Services for 1Q01 was Ps$15.2 million, or 24% of
revenues when compared to Ps$30.7 million, or 60% of revenues,
registered in 1Q00.
This improvement on the cost was a combination of the following
factors:

--  A 66% decrease in reselling costs given the reduction on the
long distance traffic

--  A 46% decrease in leased dedicated circuits' costs originated
by:

--  Permanent savings for moving Maxcom's POPS to the FO
metropolitan ring acquired from Metronet

--  A 6% decrease in interconnection costs to carriers other than
Telmex

Nonetheless, Cost of Network Services increased in 1Q01 from
Ps$15.0 million, or 21% of revenues reported in 4Q00.

GROSS PROFIT

In 1Q01, the Company's Gross Profit totaled Ps$47.7 million, an
increase of 136% from Ps$20.2 million registered in 1Q00. This
figure reflects a 17% decrease from the Gross Profit registered
in 4Q00 of Ps$57.2 million. As a consequence, the Gross Margin
for 1Q01 was 76%, compared with the 40% margin in the same year-
ago quarter, and slightly below 79% in 4Q00.

SG&A

Selling, General and Administrative expenses for 1Q01 were
Ps$129.4 million, when compared to Ps$66.0 million in 1Q00,
representing an increase of 96%. Selling, General and
Administrative expenses were Ps.$88.9 in 4Q00. During 1Q01, the
Company incurred in several extraordinary and non-recurrent
expenses in the amount of Ps$48.4 million. Such expenses included
consulting and executive recruiting fees, one-time executive
compensation and incentive expenses, bad debt provisioning, and
excess labor related taxes (under appeal). Total Salaries, Wages
and Benefits for 1Q01 were Ps$46.9 million. However, net
Salaries, Wages and Benefits for 1Q01 totaled Ps$37.5 million,
compared to Ps$ 41.2 million in 1Q00, and Ps$33.5 million in
4Q00. As of March 31st, 2001, employee headcount was 545 compared
to 371 employees as of March 31st, 2000, and 457 employees as of
December 31st, 2000. Marketing Expenses for 1Q01 amounted to
Ps$5.5 million from Ps$5.1 million in 1Q00, and Ps$3.8 million in
4Q00. The increase during the first quarter stems from the
marketing strategies and branding campaigns put into practice
late 4Q00, and other initiatives implemented by the new Chief
Marketing Officer. Consulting Fees for 1Q01 were Ps$43.7 million,
compared to Ps$3.6 million in 1Q00, and Ps$22.7 million in 4Q00.
After subtracting the non-recurrent component for 1Q01 and 4Q00,
consulting fees were Ps$13.0 and Ps$10.1 million, respectively.
The Company provisioned Ps$10.6 million for Bad Debt Reserve in
1Q01 as a consequence of the implementation of new Account
Receivables policies.

EBITDA

Negative EBITDA for 1Q01 was Ps$81.7 million, compared to
negative EBITDA of Ps$45.8 million in 1Q00. Negative EBITDA in
4Q00 was Ps$31.7 million. Normalized EBITDA, that is, deducting
all the extraordinary and non-recurrent events of the quarter,
was a loss of Ps$33.3 million.

DEPRECIATION & AMORTIZATION

Depreciation and Amortization cost in 1Q01 totaled Ps$58.9
million, compared to Ps$38.9 million in 1Q00. The variation
reflects an increase in the value of fixed assets, amortization
costs related to the issuance of the US$300 million 13.75% senior
notes due 2007, and the cost of stock options granted.
Depreciation and Amortization cost also increased from Ps$55.4
million in 4Q00.

COMPREHENSIVE COST OF FINANCING

Comprehensive Cost of Financing for 1Q01 was Ps$57.7 million,
compared to Ps$5.6 million in 1Q00 and Ps$85.6 million in 4Q00.

NET LOSS

Net Loss for 1Q01 was Ps$198.8 million as compared to Ps$89.9
million for 1Q00 and Ps$173.7 million for 4Q00.

CAPITAL EXPENDITURES

Capital Expenditures for 1Q01 were Ps$23.7, compared to Ps$241.6
million in 1Q00 and Ps$105.3 million in 4Q00.

CASH POSITION

Maxcom's Cash position in the first quarter of 2001 was Ps$970.9
million in Cash and Cash Equivalents, and Ps$572.7 million in
Restricted Cash, which is deposited into an escrow account to
guarantee debt service until April 2002 for the US$300 million
13.75% senior notes due 2007. This compares to Ps$1,051.4 million
in Cash and Cash Equivalents, and Ps$770.9 million in Restricted
Cash in the escrow account at the end of 1Q00, and to Ps$1,081.5
million in Cash and Cash Equivalents, and Ps$770.9 million in
Restricted Cash in the escrow account at the end of 4Q00.


MAXCOM TELECOMUNICACIONES: Sets Aside Cash For Interest Payments
----------------------------------------------------------------
Struggling Mexican telephone company Maxcom has set aside $77
million in a bank account to make interest payments on $300
million in bonds it issued last year, Reforma reported last week.
The escrowed amount is enough to cover the company's debt through
March 2002, by which time its current cash flow will need to have
been boosted significantly. Maxcom is said to have a further $100
million in cash, however, these funds are not likely to be used
to its debt.


MINERA AUTLAN: Posted P$47.11M Loss In 1Q01
-------------------------------------------
Mexican mining company Cia. Minera Autlan announced it lost 47.11
million pesos or 0.17 pesos per share, for the quarter ended
March 31, compared with earnings of 15.42 million pesos or 0.05
pesos per share, in the same period a year earlier, according to
a Bloomberg report Wednesday issue. It also posted revenues of
250.76 million pesos, compared with 302.80 million pesos. Autlan
recently defaulted on an interest payment to creditors and is
actively searching for a major financial partner to help it
fulfill its debt obligations. The Mexican mining and minerals
group has been buffeted by increases in the price of natural gas
and electricity, which account for one-third of its costs.


SAVIA: 1Q01 Results: Reversing The Negative Trend
-------------------------------------------------

* Consolidated sales remained relatively unchanged at US$ 838
million.

* Operating income rose four fold to US$ 79 million. Net income
amounted to US$ 1.4 million, representing a year-over-year
increase of US$ 18 million, reverting the negative trend
registered in the previous quarters.

* Savia reached an initial agreement with its lender banks
regarding its bank debt and is currently preparing the final
documentation in connection with the terms and conditions of the
Company's financial obligations. The Company's assets exceed its
bank loans, presenting a strong balance sheet to comply with its
financial obligations.

* Seguros Comercial America (SCA) posted operating income of
US$ 48 million, also reverting the negative trend of the previous
quarters. Seguros' performance confirmed the company's market
leadership position and reported outstanding efficiency
indicators, comparable with those of world leading insurance
companies. The underwriting income was 10.9% and the combined
ratio 97.1%.

* Seminis, the world's leading fruit and vegetable seed
developer, producer and marketer, posted a 12% reduction in
operating costs, reflecting the successful ongoing implementation
of the company's Global Optimization Plan. Additionally, Seminis
advanced in the negotiations with its lender banks and obtained
an extension of the modifications and interim waiver agreement
until May 22, 2001.

* Bionova reported operating income of US$ 3 million, also
reverting the negative trend of previous quarters. The company
announced a restructuring of its technology business to reduce
cash flow needs and focus on its strategic business areas.

* Savia announced the agreement to sell the three subsidiaries of
Empaques Ponderosa with proceeds of this transaction available to
Savia to be applied to reducing the Company's bank debt.

Savia S.A. de C.V. (NYSE: VAI) (BMV: SAVIA) announced today
results for the three-month period ended March 31, 2001.

Consolidated Results

First Quarter 2001 Results

Net Consolidated Sales

Net sales for the period amounted to US$ 838 million,
representing a 2% decline from US$ 851 million for the same
quarter last year. Foreign currency denominated sales amounted to
US$ 320 million, or 38% of total consolidated sales. To
facilitate the analysis, Savia segregates results in two
segments: the industrial and commercial sector (ICS) and the
financial services sector (FSS). The ICS includes agrotechnology,
packaging and other business operations. The FSS includes Seguros
Comercial America (SCA) and its subsidiaries. ICS sales for the
quarter amounted to US$ 263 million, representing a 16% decline
from the year-ago period. SSF sales increased by 7% to US$ 575
million.

Consolidated Operating Income

Consolidated operating income for the quarter reached US$ 79
million, up year-over-year by 400% from US$ 16 million. ICS
reported operating income for the period of US$ 31 million, a
decline from US$ 41 million last year. This decline resulted
mainly from a US$ 10 million reduction in operating income at the
agro technology and packaging sectors. FSS reported operating
income for the quarter of US$ 48 million, compared with a US$ 26
million loss for the last year's quarter.

Net Consolidated Income

Net consolidated income for the quarter amounted to US$ 1.4
million, compared with a US$ 17 million loss for the same period
last year. Majority loss for quarter reached US$ 15.6 million, or
a loss of Ps.0.32 per share (US$0.14 per ADR.)

First Quarter Results by Subsidiary

Financial Services Sector (FSS)

Seguros Comercial America

Seguros Comercial America, S.A. de C.V., (BMV: SEGCOAM) and its
subsidiaries, contributed US$ 575 million in sales, representing
a 7% year-over-year increase from US$ 537 million. This increase
was mainly the outcome of successful marketing and commercial
efforts to strengthen the company's leadership, resulting in an
increase of the company's share of the market to 28.8%. Operating
income for the quarter was US$ 48 million, compared with a loss
of US$ 26 million for the first quarter of last year. The company
reported outstanding efficiency indicators, comparable with those
of world leading insurance companies. The underwriting income,
main indicator of the company's strength, was 10.9%, while the
combine ratio reached 97.1%.

Industrial and Commercial Sector (ICS)

Seminis

Seminis' (Nasdaq: SMNS) sales for the first quarter of 2001
amounted to US$ 152 million, representing a 21% decline from the
same period last year. The year-over-year decline in sales was
primarily due to the expected impact of discontinued operations
under the Global Optimization Plan and a refocus of the company's
sales strategy. In 2000, Seminis focused on expanding market
share and consolidating its global leadership in the fruit and
vegetable seed industry. The rapid growth, together with the slow
integration process, negatively impacted the company's results.
This year, Seminis is focused on returning to profitability,
controlling operating costs while maintaining its global
leadership. As a result of the Global Optimization Plan,
operating expenses, including US$ 2.2 million in non-recurring
extraordinary charges, declined year-over-year by US$ 8 million,
or by 12%. Operating income for the quarter was US$ 32 million,
compared with US$ 48 million for the same period last year.

Bionova

Sales for the quarter at Bionova (Amex: BVA) were US$ 66 million,
representing a 14% year-over-year increase. Operating income for
the quarter reached US$ 3 million, up from a loss of US$ 7
million for the same period last year, reverting the negative
trend of previous quarters. On April 24, 2001, the company
announced a restructurinw of }§=???s cash flow needs.

Empaques Ponderosa

Sales for the period at Empaques Ponderosa (BMV: EMPAQ) amounted
to US$ 34 million, representing a 17% decline from the US$ 41
million for the same quarter last year. The decline in sales was
principally due to the scheduled biannual maintenance of the
boxboard equipment and the impact of the strong peso. In
addition, the company exported 24% of its boxboard production.
Operating income for the first quarter was US$ 6 million,
compared with
US$ 10 million for the equivalent period last year.

The company's results were negatively affected by the increase in
energy costs and the pressure exerted by the strong peso on
prices.

Key Developments

Savia reached an initial agreement with its lender banks
regarding its bank debt and is currently negotiating the final
documentation in connection with the terms and conditions of the
Company's financial obligations. The Company's assets amply cover
its bank loans, presenting a strong balance sheet to comply with
its financial obligations.

On April 6, 2001, Empaques Ponderosa reached an agreement with
Organizacion Editorial Mexicana (OEM) to sell Cartones Ponderosa,
Ecofibras Ponderosa y Ponderfibers Corporation for a total
consideration of US$ 285 million. The portion of the proceeds
from this transaction available to Savia will be applied to debt
payment.


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

AUSTRAL GROUP: Expects To Turn Last Year's Loss Into Profit
-----------------------------------------------------------
Peru's Austral Group SA, one of the country's largest fishmeal
producers, expects to turn a profit in 2001 on higher sales
revenue after a $12 million loss last year, Juan Wiesner, the
company's general manager, said in a Bloomberg report Wednesday
issue. Wiesner did not disclose an exact figure for the expected
earnings, which would compare with a loss of 42.4 million soles
(about $12 million) a year earlier. According to Wiesner, the
company expects an 11 percent increase in sales to $140 million
this year, up from about $126 million a year earlier. Fishmeal
should account for about $85 million in sales and the remainder
would come from fish oil and canned fish sales.

Austral has just completed a financial restructuring, under which
creditors agreed to swap some $38.9 million in debt for equity in
the company. The program was implemented in order to help the
company fulfill its debt payments over an eight-year period. It
financial troubles started after a dismal 1998 fishing season
when the country was affected by the El Nino phenomenon.




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 American is a daily newsletter
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and Beard Group, Inc., Washington, DC. John D. Resnick, Edem
Psamathe P. Alfeche and Janice Mendoza, Editors.

Copyright 2001.  All rights reserved.  ISSN 1529-2746.

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