TCRLA_Public/010626.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

            Tuesday, June 26, 2001, Vol. 2, Issue 124

                           Headlines


A R G E N T I N A

AEROLINEAS ARGENTINAS: Files For Protection From Creditors
AEROLINEAS ARGENTINAS: Former Executives, Investors Tender Bid
EL SITIO: Milberg Weiss Commences Securities Lawsuit In SDNY
SUPERMERCADOS NORTE: 82% Of Notes Tendered By Expiration
TOWER RECORDS: Selling Argentine Stores After Moody's Downgrade


B R A Z I L

FIAT: To Dismiss 25% Of Brazilian Workforce Due To Drop In Sales
GENERAL MEAT: Secretary Proposes To Make Use Of Dormant Plant
INDUSTRIAS ANHEMBI: Files For Protection From Creditors
INDUSTRIAS KLABIN: Losses Half Of Its Value This Year


C H I L E

BOLIDEN LIMITED: Restructuring Approved, Files Prelim Prospectus
EDELNOR: Submits New EIA For The Use Of Petcoke Fuel
MINERA CASCADA: Pushes Back Date For Receiving Bids
MORGAN IMPRESORES: Shareholders Hold Meeting To Decide On Sale
TELEFONICA CTC: Seeks Approval For Lifting Of Tariff Decree
TELEX-CHILE: Postpones Shareholders Meeting, Names New Director


C O L O M B I A

BOLIVAR AQUEDUCT: Superservicios Liquidates Company


M E X I C O

ABC-NACO INC.: Shareholders Approve Financing Transactions
GRUPO TRIBASA: S&P Removes `Selective Default (SD)' Rating
SAVIA: Finalizes Sale Of Seguros Comercial America To ING
STEWART ENTERPRISES: Prices $300M Of Senior Subordinated Notes


V E N E Z U E L A

NGTV: To Divest Foreign Ops, Scratches Latin Am. Investment Plan


    - - - - - - - - - -


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A R G E N T I N A
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AEROLINEAS ARGENTINAS: Files For Protection From Creditors
----------------------------------------------------------
Aerolineas Argentinas, a unit of Spain's Sociedad Estatal de
Participaciones Industriales (SEPI), on Friday filed a petition
with a Buenos Aires court for protection from its creditors,
company officials disclosed in an EFE report. Judge Norma Di
Noto, who heads Commercial Court 15, will handle the case. Di
Noto is expected to rule within the next few days on whether to
allow the financially troubled flagship carrier to suspend
payments to creditors in order to reorganize, the officials said.
Privatized in 1990 as a debt-free company with a fleet of 28
jets, Aerolineas Argentinas now has debts totaling some $900
million and loses some $300 million per year.


AEROLINEAS ARGENTINAS: Former Executives, Investors Tender Bid
--------------------------------------------------------------
After Peru's largest airline AeroContinente announced it had made
an offer to Spanish state-owned holding company SEPI to buy its
struggling unit, Aerolineas Argentinas, a group of former
Aerolineas executives and other Argentine investors tendered a
bid Thursday, EFE News Service revealed in a report. Representing
the group, Juan Carlos Pellegrini, who was Aerolineas Argentinas
chairman from 1973 to 1983, conveyed the offer to presidential
chief of staff Nicolas Gallo. According to reports, the offer was
backed by a bank prepared to underwrite the deal and by U.S.
plane manufacturer Boeing, willing to provide the flagship
airline with a new fleet. The group headed by Pellegrini, who is
currently the president of Hotel Conrad in Punta del Este,
Uruguay, includes billionaire Gregorio Perez Companc, owner of
industrial conglomerate Perez Companc.


EL SITIO: Milberg Weiss Commences Securities Lawsuit In SDNY
------------------------------------------------------------
The law firm of Milberg Weiss Bershad Hynes & Lerach LLP
announces that a class action lawsuit was filed on June 22, 2001,
on behalf of purchasers of the securities of El Sitio, Inc. ("El
Sitio" or the "Company") (NASDAQ: LCTO) between December 9, 1999
and December 6, 2000, inclusive.

A copy of the complaint filed in this action is available from
the Court, or can be viewed on Milberg Weiss' website at:
http://www.milberg.com/elsitio/

The action is pending in the United States District Court,
Southern District of New York, located at 500 Pearl Street, New
York, NY 10007, against defendants El Sitio, Credit Suisse First
Boston Corporation ("Credit Suisse"), Lehman Brothers, Inc.
("Lehman"), Merrill Lynch, Pierce, Fenner & Smith, Incorporated
("Merrill"), Salomon Smith Barney, Inc. ("Smith Barney"),
BancBoston Robertson Stephens, Inc. ("Robertson Stephens"),
Roberto Cibrian-Campoy, Roberto Vivo-Chaneton, Horacio Milberg
and Alfredo Jimenez De Arechaga.

The complaint alleges violations of Sections 11, 12(a)(2) and 15
of the Securities Act of 1933 and Section 10(b) of the Securities
Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On or
about December 9, 1999, El Sitio commenced an initial public
offering of 8,200,000 of its shares of common stock at an
offering price of $16 per share (the "El Sitio IPO"). In
connection therewith, El Sitio filed a registration statement,
which incorporated a prospectus (the "Prospectus"), with the SEC.
The complaint further alleges that the Prospectus was materially
false and misleading because it failed to disclose, among other
things, that: (i) Credit Suisse, Lehman, Merrill, Smith Barney
and Robertson Stephens had solicited and received excessive and
undisclosed commissions from certain investors in exchange for
which Credit Suisse, Lehman, Merrill, Smith Barney and Robertson
Stephens allocated to those investors material portions of the
restricted number of El Sitio shares issued in connection with
the El Sitio IPO; and (ii) Credit Suisse, Lehman, Merrill, Smith
Barney and Robertson Stephens had entered into agreements with
customers whereby Credit Suisse, Lehman, Merrill, Smith Barney
and Robertson Stephens agreed to allocate El Sitio shares to
those customers in the El Sitio IPO in exchange for which the
customers agreed to purchase additional El Sitio shares in the
aftermarket at pre-determined prices. As alleged in the
complaint, the SEC is investigating underwriting practices in
connection with several other initial public offerings.


SUPERMERCADOS NORTE: 82% Of Notes Tendered By Expiration
--------------------------------------------------------
Supermercados Norte S.A. ("Norte") announced that as of 5:00
p.m., New York City time, on the expiration date, June 21, 2001,
it had received tenders from the holders of approximately
U.S.$115 million principal amount of its 10-7/8% Senior Notes due
2004 (the "Notes"), representing approximately 82% of the
outstanding principal amount of the Notes (other than Notes held
by Norte or its affiliates) in the tender offer and the change of
control offer to purchase its Notes announced by Norte on May 11,
2001.

In addition, affiliates of Norte have tendered approximately $80
million principal amount of Notes in the tender offer.

As a result of the tender of Notes in the Tender Offer by the
early tender date, June 7, 2001, sufficient consents were
delivered to approve, and at the noteholders' meeting held on
June 20, 2001 in Buenos Aires, Argentina, holders of Notes
present by proxy (including by consents) approved, the following:
(i) a supplemental indenture that amended the Indenture for the
Notes to eliminate substantially all of the restrictive covenants
in the Indenture, (ii) the delisting of the Notes from the Buenos
Aires Stock Exchange (subject to the approval of such stock
exchange) and (iii) the withdrawal of the Notes from the public
offering regime of the Comision Nacional de Valores (the
Argentine National Securities Commission). The supplemental
indenture relating to the amendments was entered into after
approval at the noteholder meeting on June 21, 2001, and the
amendments became effective when the Notes were accepted for
payment pursuant to the tender offer.

All Notes validly tendered prior to the expiration of the Offers
have been accepted for payment pursuant to the terms of the
Offers.

This announcement is not an offer to purchase, a solicitation of
an offer to purchase or a solicitation of consents with respect
to any security. The offers were made solely by the Offers to
Purchase Statement dated May 11, 2001.

Supermercados Norte S.A. is Argentina's leading retailer.
Operating under the brand names Norte, Tia and Lozano, Norte is
Argentina's only nationwide supermarket operator. Since April 11,
2001, Norte is controlled by Carrefour S.A. Carrefour is a French
corporation with worldwide retailing operations.

The dealer manager for the Offers is:

Merrill Lynch & Co.
Attention: Liability Management
888-ML4-TNDR (toll free) or
If outside the United States,
212-449-4914 (call collect)

Merrill Lynch Argentina S.A. Sociedad de Bolsa
Bouchard 547, 23rd Floor
Attention: Tomas Gaona
C1106ABG Buenos Aires, Argentina
Telephone: (5411) 4317-7600

The information agent for the offers is:

MalCon Proxy Advisors, Inc.
800-475-9320 (toll-free)
Banks and brokers please call:
212-619-4565 (collect)


TOWER RECORDS: Selling Argentine Stores After Moody's Downgrade
---------------------------------------------------------------
MTS, Incorporated dba Tower Records announced its confidence in
the strategic initiatives it has undertaken to increase long term
profitability, reduce working capital and increase cash flow.

Following Moody's downgrading of the company's senior
subordinated notes, based on uncertainty about the company's
ability to sustain adequate operating liquidity during the fourth
calendar quarter of 2001, as well as current weakness in the
music retailing segment, Tower Records' President and CEO,
Michael Solomon said, In our most recent filing with the
Securities and Exchange Commission, we were encouraged to report
revenue stability for the quarter ended April 30, 2001 at a time
when the revenue trend in retail is down. We are on-target with
our restructuring plan and continue to execute the redeployment
strategy endorsed by our board of directors late last year. We
expect positive contributions from that strategy in the quarters
ahead.

Tower Records' restructuring plan focuses on a set of strategic
initiatives designed specifically to streamline operations,
reduce working capital and increase the company's long term
profitability, performance and cash flow. Since the plan was
implemented, the company has closed several under performing
stores and lowered its operating costs by addressing a number of
inefficiencies in its operations.

The company further confirmed its commitment to improved
inventory management and planning with the implementation of a
new inventory management system developed by Nordic Information
Services. In addition, Tower Records has adopted an auto
replenishment system designed to increase customer selection and
improve inventory turns and profit margins. The company believes
that implementation of these new systems is integral to its
business strategy and its on-going dedication to cater to the
musically diverse and ever changing tastes and demands if its
customers.

Tower successfully extended its credit facility on April 23, 2001
for a period of one year. The amended credit facility initially
provides the company with available borrowings of approximately
$225 million, which amount will decline by $15 million in each of
July and October 2001 and by an additional $95 million in
December 2001. The company confirmed that it is actively seeking
further external financing to reduce the principal balance under
the credit facility in accordance with the terms of the amended
credit facility.

As part of the retailer's plan to restructure global operations,
the company currently reports that it is negotiating the sale of
its operations in Argentina, Taiwan and Hong Kong. In order to
deplete net operating losses in these territories, the company
intends to spin off these operations to local investors, enabling
the conversion of eight international stores to franchise
locations.

Tower Records' President and CEO, Michael Solomon, also commented
on the retailer's share of the market, which, has remained stable
at 4% over the last three years. He added, We believe that Tower
continues to hold its own and we are encouraged by a more
promising album release schedule starting in June, which we
anticipate will favorably impact sales.

Since 1960 Tower Records has been recognized throughout the world
for its unique brand of retailing and music community. Founded in
Sacramento, California the company's growth over four decades has
made Tower Records a household name across the globe.

As of April 30, 2001, the company owns and operates 187 stores
worldwide. The organization opened one of the first Internet
music stores on America Online in June 1995 and followed a year
later with the launch of TowerRecords.com. Relaunched late last
summer with an emphasis on search, selection, simplicity and
service, the site was named Best Music Commerce Site by Forrester
Research in Fall 2000. Tower Records and TowerRecords.com
partnerships include Muze, AOL, Yahoo, Liquid Audio and Student
Advantage. Tower Records maintains its commitment to providing
the deepest selection of packaged entertainment in the world.



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B R A Z I L
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FIAT: To Dismiss 25% Of Brazilian Workforce Due To Drop In Sales
----------------------------------------------------------------
Italy-based carmaker Fiat SpA plans to lay off 2,500 out of
10,000 workers at its Brazilian unit next month as it predicts a
10-percent drop in auto sales in July from June, Bloomberg
reported Friday.

"The measure has the objective to match the rhythm of production
to actual demand in the market so as not to raise the average
volume of inventory in dealerships, which is approximately 28,000
units," the company said.

Just recently, Fiat also announced a halt in operations at its
Argentine automobile plant in Cordoba for a week and fired 70
workers due to a 53-percent drop in auto sales in May while a
three-year recession drags on.


GENERAL MEAT: Secretary Proposes To Make Use Of Dormant Plant
-------------------------------------------------------------
The Secretary of Agriculture of the State of Rio Grande do Sul
proposed forming a consortium of slaughterhouses to the local
meat industry, South American Business Information reported
Friday. Under the plan, the firms would band together to use the
facilities of the General Meat Food freezing plant in Santana do
Livramento. The plant, which halted operations in February due to
financial problems, as well as the mad cow disease in Europe,
will be used for cooking and processing of 80m tons of meat daily
for export. According to the agriculture secretary, the proposal
will make the best use of the industrial capacity of the meat
industry in the state and will avoid the dismissal of 543
employees in the plant. Furthermore, it will provide for a
centralized accounting system for the participants. The proposal
requires the support of other freezing plants in the state, which
will receive compensation for the animals processed in the plant.
General Food is controlled by 3C from Rio Pardo (Rio Gande do
Sul).


INDUSTRIAS ANHEMBI: Files For Protection From Creditors
-------------------------------------------------------
Industrias Anhembi S.A, which produces bleach under the Candida
and Q'Boa brands, applied for protection from creditors in Sao
Paulo, South American Business Information reported Friday.
Anhembi, with R$8 million in bank debt and R$10 million owed to
its suppliers, blames much of its liquidity problems on the
soaring value of the US dollar. The company, by late 2000,
registered liabilities amounting to R$64 million for a net worth
of R$23 million. Anhembi already outlined its restructuring
program, proposing to cut costs between 15 percent and 20 percent
or R$5.5 million.


INDUSTRIAS KLABIN: Losses Half Of Its Value This Year
-----------------------------------------------------
Industrias Klabin shares have lost half of their market value
this year. The drop in price is due to skepticism that the
Brazilian manufacturer of wrapping and sanitary paper is
vulnerable to a drop in demand in the domestic market, according
to a report in South American Business Information Friday.

Klabin is believed to have no power generation capacity of its
own, adding further reason for negative investor sentiment. The
company contends, however, that 80 percent of production is in
areas not currently subject to energy rationing.

A high dollar-denominated debt ratio is also reportedly taking
its toll on the equity price. The company contends this is not a
major threat as half of its earnings are also pegged to the
dollar.



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C H I L E
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BOLIDEN LIMITED: Restructuring Approved, Files Prelim Prospectus
----------------------------------------------------------------
Boliden Limited today announced that the lenders under its
corporate credit facilities and the counterparties under its
foreign currency hedge contracts have approved the refinancing
and restructuring proposal that the Company presented to them in
late May. Under the terms of the proposal, the hedge
counterparties will close out the Corporation's existing foreign
currency hedge contracts and convert the losses incurred to debt
and the hedge counterparties and the lenders will refinance
approximately $800 million of outstanding debt under a new credit
facility with debt maturities ranging from two to five years. The
refinancing and restructuring is being carried out in conjunction
with and is conditional upon completion of the Company's
previously announced equity offerings and settlement of
definitive documentation.

The Company also announced that it will today file a preliminary
prospectus in respect of the equity offerings. The offerings
consist of a $114 million common share rights offering to the
Company's existing shareholders fully secured by subscription and
standby commitments and a $150 million common share offering
directed to existing shareholders, certain Swedish investors and
the lenders fully secured by purchase commitments. The net
proceeds of the rights offering will be used to finance the
Company's operations. The net proceeds of the directed offering
will be used to reduce the Company's debt under the new credit
facility. The equity offerings have been structured to permit
existing shareholders to participate to the maximum extent
possible. If existing shareholders participate fully in the
offerings, they will continue to own approximately 88% of the
equity of the Company.

The equity offerings will be made by way of prospectus in Sweden
and Canada. The Corporation will formally launch the offerings
following the clearance of the preliminary prospectus by the
Canadian regulatory authorities and the Stockholm Exchange
(Stockholmsborsen). The record date for the rights offering is
expected to be in early July 2001.

Boliden is engaged in the mining, processing and selling of
metals and mineral products, principally copper and zinc, with
operations in Europe, Chile and Canada.

(All dollar amounts stated in US Dollars)


EDELNOR: Submits New EIA For The Use Of Petcoke Fuel
----------------------------------------------------
Empresa Electrica del Norte Grande S.A. (EDELNOR), controlled by
Mirnat (US), has submitted its new Environment Impact Assessment
(EIA) to the Regional Commission of Environment Corema to use
petcoke as fuel at its carbon centers in Mejillones, South
American Business Information revealed Friday. The electricitcy
company refers to strategic reasons to use petcoke in carbon
mixtures, as the fact that it generates energy at lower costs. It
has lost important supply contracts, and is now aiming at new
foreign markets, like energy exports to Argentina. The struggling
company's future is closely tied to the use of petcoke as fuel
for power generation.

EDELNOR reported a loss of Ch$9.8 billion through first quarter
2001, compared to a profits of Ch$11.2 billion for the same
period of 2000. Results were negatively impacted by a non-cash
monetary correction adjustment (price level restatement) required
under Chilean accounting rules in the amount of Ch$7.0 billion.


MINERA CASCADA: Pushes Back Date For Receiving Bids
---------------------------------------------------
The date for receiving bids for the assets of Minera Cascada has
been postponed to July 25 instead of May 25, according to a
report Wednesday in Business News Americas. Minera Cascada is a
mid-sized copper mining company owned by Chile's Cruzat group.

An unnamed source reasoned that the process has been delayed
because potential investors asked for more time to analyze and
evaluate the situation. Asset Chile, which is handling the
auction, revealed that more than 50 mining companies and
investors from around the country and abroad have expressed
interest in the assets. One of the bidders is Canada's Atna
Resources, according to the company's president and CEO David
Watkins.

Bids were previously due in the second half of April. Cascada,
which went into bankruptcy last October, owes banks some US$35
million.


MORGAN IMPRESORES: Shareholders Hold Meeting To Decide On Sale
--------------------------------------------------------------
Shareholders of Morgan Impresores, the printing company which is
currently operating under preventive bankruptcy, held a meeting
recently aiming to decide on the sale of Morgan. On the table is
the likely offer from prospective bidder, publishing company El
Mercurio, South American Business Information reported Friday.
Morgan reportedly has debts of US$45 million, and the new buyer
would settle some US$12 million of the total. Morgan Impresores
is controlled by Darby Investment (35 percent), Banta Corp (30
percent), Juan Pablo Morgan (25 percent), and the investment fund
Estrella Americana. Morgan exports to more then 20 countries. Its
international customers are Argentina, Brazil, Mexico, and the
United States, and it has subsidiaries in most of these
countries. The company competes with the printing companies
Antarctica-Qubecor, and Cochrane.


TELEFONICA CTC: Seeks Approval For Lifting Of Tariff Decree
-----------------------------------------------------------
In 1999, a decree, which was aimed at stimulating efficiency and
progressive drop of telephone tariffs, and which was developed by
economists Erick Haindl and Hernan Cheyre at the end of the 80's,
was applied to Telefonica CTC Chile, according to a Friday report
in South American Business Information. Now, Telefonica feels
that the market has reached maximum efficiency and is looking to
have this decree lifted. The Minister of Transport and
Telecommunications Carlos Cruz, who is concerned by all the
dismissals made by Telefonica, expressed open-mindedness
regarding this possibility.

According to Cruz, the sector has produced many important
changes, and the decree has been overcome by these changes and
may need to be revised. However, Cruz's comment spurred a
reaction from Telefonica's competitors, which admitted that
although they have reached competency level, they feared this is
still not enough to face competition with Telefonica. Entel, VTR,
Telsur and AT&T have all gathered arguments in support of
maintaining the decree as is.

Meawhile, Minister Cruz recently held an important meeting to
disclose government's posture before the Regulatory Commission
about the possibility of granting tariff freedom to Telefonica
CTC Chile. Held in the presence of the Telecommunications
undersecretary, Entel's president, VTR's executive president,
Telefonica del Sur's general manager, AT&T's general manager, and
Telefonica CTC Chile's president, no meeting details were
subsequently disclosed.

The meeting was held to discuss Telefonica's concern about its
losses due to Government decree fixing telephone tariffs.
Telefonica has stated that their only objective is to provide
different tariff plans for customers, and that new technology has
brought increased competition, but prices will not go up.


TELEX-CHILE: Postpones Shareholders Meeting, Names New Director
---------------------------------------------------------------
The board of Chilean telecoms holding company Telex-Chile has
suspended an extraordinary shareholders' meeting scheduled for
July 6 as it is yet to reach an agreement with creditors to sell
part or all of its assets and/or incorporate a strategic partner,
Business News Americas said in a report Wednesday. Under the
company's charter, the sale of strategic assets requires the
approval of at least 90 percent of shareholders.

"The new date that the directors establish for the shareholders'
meeting, as well as the items that are to be discuss, will be
informed in due course," according to the statement.

Meanwhile, the company also informed local securities regulators
that it has named Heriberto Urzua to replace Raul Sotomayor on
the board.



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C O L O M B I A
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BOLIVAR AQUEDUCT: Superservicios Liquidates Company
---------------------------------------------------
The director of Colombia's Superservicios residential public
services regulator, Diego Humberto Caicedo, liquidated Bolivar
Aqueduct company, Business News Americas reported Friday. The
company operates the regional aqueduct for the municipalities of
Arjona, Turbaco and Turbana in Bolivar department, providing
services to over 100,000 people. Superservicios took over its
administration in June last year following its failure to meet
financial obligations. The company only manages to collect 16
percent of its bills, not enough to cover administration,
operational and maintenance costs. The system is in a serious
state of disrepair.



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M E X I C O
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ABC-NACO INC.: Shareholders Approve Financing Transactions
----------------------------------------------------------
ABC-NACO Inc. (ABCR) announced today that it was gratified by the
overwhelming support of its shareholders to all of the proposals
approved at the 2001 annual shareholder meeting held yesterday in
Chicago. Two of these proposals finalized a series of financing
agreements announced in April 2001. Specifically, the $15 million
in new financing from funds managed by ING Furman Selz
Investments, the sale of the Company's Flow and Specialty
Products Division for $24 million and an amendment to the
Company's Bank Credit Agreement which closed on May 2, 2001.

ABC-NACO is one of the world's leading suppliers of
technologically advanced products to the rail industry. With four
technology centers around the world, ABC-NACO holds pre-eminent
market positions in the design, engineering and manufacture of
high-performance freight car, locomotive and passenger suspension
and coupling systems, wheels and mounted wheel sets. The Company
also supplies railroad and transit infrastructure products and
services and technology-driven specialty track products. It has
23 offices and facilities in the United States, Canada, Mexico,
Scotland, Portugal and China.


GRUPO TRIBASA: S&P Removes `Selective Default (SD)' Rating
----------------------------------------------------------
Standard & Poor's (S&P) removed the Selective Default (SD) rating
of Mexican engineering and construction firm Grupo Tribasa,
Business News Americas reported Friday. An analyst at S&P's
Mexico City office explained that the reason for the removal is
the failure of Tribasa to supply the ratings agency with
sufficient information.

"This has been going on for some time and we decided to drop the
SD rating because Tribasa has not been sending us enough
information," the analyst said. Tribasa is not under any
obligation to provide the data. The general outlook for Tribasa
is not good, the analyst added, although it continues to
negotiate with creditors and prospective partners, including
possible buyers.

"Tribasa fell really hard just after the [Mexican peso]
devaluation in 1994, and has never quite recovered. It was buried
under the weight of its own debts," said the analyst.

While Tribasa has some work lined up for the immediate future,
including a major contract to upgrade state oil firm Pemex's
Cadereyta refinery, the question remains whether the company will
be able to carry the work out, he added.

"Companies like Tribasa need large amounts of liquidity. It has
been a problem for them for a few years now," he said.


SAVIA: Finalizes Sale Of Seguros Comercial America To ING
---------------------------------------------------------
Savia, S.A. de C.V. has finalized the sale of the remaining
outstanding shares of the subsidiary that holds Seguros Comercial
America to the Dutch company ING Insurance International B.V.,
for a total amount of US$791 million, Bloomberg said in a report
Friday.

"One of the reasons we were attracted to the company was because
of its management team and the depth of talent in the
organization," said Mark Tullis, general manager and chief of
staff for ING Americas. "We don't have a lot of redundant
operations so we don't see this view this as a cost-cutting
opportunity." Tullis said ING is studying its options with a
roughly 13 percent equity stake in Seguros Comercial, also known
as SCA.

"We do pledge we will observe the legitimate interests of the
remaining shareholders in SCA in accordance with Mexican law,"
Tullis said. The insurance company's shares, which trade
infrequently, have dropped 41 percent to 21 pesos in the last 12
months.

Savia sold Comercial America, which had accounted for most of its
profits, to pay part of the $1.3 billion debt it had trouble
paying, including a loan of about $550 million from ING.

After selling the insurance unit, Savia is left with two
struggling agriculture-related companies -- a vegetable seed
producer and a fresh produce distributor. As a result, Savia's
shares have plunged 81 percent to 6.50 pesos since the beginning
of May.


STEWART ENTERPRISES: Prices $300M Of Senior Subordinated Notes
--------------------------------------------------------------
Stewart Enterprises, Inc. (Nasdaq NMS: STEI) announced today that
it has priced $300 million principal amount of senior
subordinated notes due 2008. The annual interest rate will be
10.75%.

The closing of the offering, which is expected to occur on June
29, 2001, is conditioned on the completion of the other
components of the Company's previously announced refinancing
plan, including a new $550 million senior secured credit facility
and the successful completion of the Company's pending tender
offer for approximately $200 million combined aggregate principal
amount of its 6.70% notes due 2003 and its 6.40% Remarketable or
Redeemable Securities (ROARS) due May 1, 2013 (Remarketing Date
May 1, 2003).

The sale of the notes will be a private placement, with notes
being offered and sold only to qualified institutional buyers in
compliance with Rule 144A under the Securities Act of 1933, and
outside the United States in compliance with Regulation S under
the Securities Act of 1933. The securities being offered are not
being registered under the Securities Act of 1933 or applicable
state securities laws, and may not be offered or sold in the
United States absent registration under the Securities Act of
1933 and applicable state securities laws or an available
exemption from these registration requirements. This news release
does not constitute an offer to sell or the solicitation of an
offer to buy the notes.

Founded in 1910, Stewart Enterprises is the third largest
provider of products and services in the death care industry in
the United States, currently owning and operating 612 funeral
homes and 161 cemeteries in North America, South America, Europe
and the Pacific Rim.



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V E N E Z U E L A
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NGTV: To Divest Foreign Ops, Scratches Latin Am. Investment Plan
----------------------------------------------------------------
United States-based carrier New Global Telecom (NGT), which
provides services to telecommunication carriers, is divesting its
foreign operations, according to company spokesperson Julie
Buchanan in a Business News Americas report released Friday. The
company has scratched its plans to invest in the Latin American
region. Its Venezuelan subsidiary, New Global Telecom Venezuela
(NGTV), acquired in May 2000 for an undisclosed amount, began
negotiations with three prospective strategic partners on May 18,
shortly before the parent company filed for Chapter 11 bankruptcy
on May 25. NGTV announced last November that it would invest
US$200 million through 2001 to expand its microwave network and
other projects. It has a fiber optic backbone linking Maracaibo,
Maracay, Valencia, Barquisimeto and Caracas in addition to its
microwave infrastructure.




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
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ,
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.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
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Information contained herein is obtained from sources believed to
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The TCR Latin America subscription rate is $575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are $25 each.  For subscription information,
contact Christopher Beard at 301/951-6400.


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