TCRLA_Public/010802.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

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

            Thursday, August 2, 2001, Vol. 2, Issue 150

                           Headlines


A R G E N T I N A

AEROLINEAS ARGENTINAS: Decision Regarding Future To Come Aug. 17


B R A Z I L

AEROELTRONICA: Elbit Systems Acquires Controlling Equity Interest
CVRD: Chairman Denies Any Plans For Management Changes
EMBRATEL: WorldCom Reiterates: No Plans To Cut Investment
INDUSTRIAS KLABIN: Analysts Project R$39 Million 2Q01 Net Loss
LIGHT: EDF Boosts Ownership To 88.21%
SCHWEITZER-MAUDUIT: Takes 2Q Charge To Restructure Brazil Ops


C O L O M B I A

SEVEN SEAS: Company Profile


M E X I C O

CINTRA: American Airlines Expresses Interest In Bidding
COMERCI: European Firm Eyes 25-Percent Stake
GALEY & LORD: Company Profile
GRUMA SA: Bimbo Execs Predict Breddy's Demise Within 6 Mos
GRUPO DINA: Expresses Optimism In Bond Buyback Operation
GRUPO SIDEK: Council Approves Divestment Plan
GRUPO TRIBASA: 1H01 Results: Net Loss Nearly Doubles
SAVIA: 2Q01 Results: Company Says Turnaround Steps Working


P A R A G U A Y

PETROPAR: President Reveals Company Is Bankrupt


P E R U

PESQUERA HAYDUK: Restructures US$74 Million Of Debts


V E N E Z U E L A

SIDOR: "Green Audit" Shows Environmental Performance Better


     - - - - - - - - - -


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A R G E N T I N A
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AEROLINEAS ARGENTINAS: Decision Regarding Future To Come Aug. 17
----------------------------------------------------------------
On July 24, stockholders of struggling Argentine airline
Aerolineas Argentinas went through the perfunctory actions of
approving the 2000 balance sheet and recessing until August 17,
Aviation Daily said in a report. August 17 is the date when a
final decision will be taken on majority shareholder SEPI's
recommendations for selecting a viable proposal out of the seven
bids currently on the table. If a proposal is not chosen then,
the choice could be made to commence actual bankruptcy
proceedings. According to union leaders who attended the meeting
representing the workers' 2.6 percent share in the company, they
would be most likely to choose the bidder ready to invest the
most money and to guarantee their 7,000 jobs.



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

AEROELTRONICA: Elbit Systems Acquires Controlling Equity Interest
-----------------------------------------------------------------
Elbit Systems Ltd. (Nasdaq: ESLT), the aerospace/defense
electronics company, announced Monday the acquisition of a
controlling interest in Aeroeletronica -- Industria de
Componentes Avionicos S.A. (AEL), the Brazilian electronics
company, for approximately $2.3 million. AEL is believed to be
facing difficulties stemming from a lack of new contracts. The
acquisition agreement was signed with the present owners of AEL,
the Aeromot Group.

The announcement was made at a ceremony held at AEL in the
presence of Dr. Geraldo Quintao, the Brazilian Minister of
Defense; General Gleuber, Commander of the Brazilian Army; senior
officials of the three branches of the Brazilian Armed Forces and
representatives of Embraer, the Brazilian aircraft company; Elbit
Systems and the Aeromot Group.

AEL will serve as a center for the production and logistics
support of advanced defense electronics for programs in Brazil
and export. In this capacity, AEL will have an integral role in
the modernization program of the Brazilian Air Force F-5
aircraft, recently awarded to Embraer and Elbit Systems, as well
as in other programs for the Brazilian Defense Forces.

Vice President of Aircraft & Helicopter Upgrades Zeev Gofer of
Elbit Systems commented, "We are most pleased with the
acquisition of AEL. The transaction is part of our strategy of
developing a long-term relationship with our customers and
partners in Brazil. It is our intent to establish AEL, together
with its highly qualified team of employees, as a top-quality
electronics manufacturing center and as a dependable provider of
full logistics support to our customers in Brazil for current and
future programs."


CVRD: Chairman Denies Any Plans For Management Changes
------------------------------------------------------
Roger Agnelli, chairman of Companhia Vale do Rio Doce, described
reports that former development minister Alcides Tapias and ex
Tele Norte Leste Participacoes SA chairman Manoel Horacio would
be joining the board as "pure speculation," reported AFX Europe
Tuesday. Agnelli said that there are no plans to change the
company's board of directors. According to him he has a long-term
contract as CVRD chairman.


EMBRATEL: WorldCom Reiterates: No Plans To Cut Investment
---------------------------------------------------------
WorldCom, which earlier last month announced it would
deconsolidate its stake in Embratel, reiterated in a statement to
the Bovepsa that it has no plans to reduce its level of
investment in Embratel Participacoes SA, according to a report
Tuesday in AFX Europe. The statement suggested that although
WorldCom has restructured its shareholdings in Embratel, this
does not mean any shares in the company will be transferred to
third parties.


INDUSTRIAS KLABIN: Analysts Project R$39 Million 2Q01 Net Loss
--------------------------------------------------------------
A summary of expected second-quarter results from Industrias
Klabin de Papel e Celulose SA shows that the Sao-Paulo based
company will report a second-quarter consolidated net loss of 39
million reais ($15.8 million), or about 4.2 centavos a share,
according to the median estimate of three analysts polled by
Bloomberg News. In its report, Bloomberg revealed that the
highest loss estimate was 57 million reais, and the lowest was 5
million reais. That would mark the third straight quarterly loss
for Klabin, which lost 79.7 million reais in the prior quarter.
The company posted a profit of 1.9 million reais, or less than
one centavo per share, in the year-ago quarter.

The company will likely report losses despite an expected surge
in revenue related to last year's purchase of the Igaras paper
mill. The loss will also come after recording an 88-million real
gain from the sale of forests in Brazil's Rio Grande do Sul
state, said Wagner Salaverry, an analyst with Geracao Corretora
de Valores, in Porto Alegre, Brazil.

"There was hope that the company would have been able to reduce
its debt quicker," said Marcio Lins, an analyst with Banco
Pactual SA in Rio de Janeiro. "It's the same story. The financial
charges are hurting the company's bottom line."


LIGHT: EDF Boosts Ownership To 88.21%
-------------------------------------
French electricity distributor Electricite de France (EDF) and US
group AES have reached an agreement which will see EDF increasing
its 64.32 percent stake in the Brazilian electricity group Light
Servicos de Eletricidade SA to 88.21 percent, Ft.com reported
Monday. In return, AES will take control of Lightgas and its
subsidiaries, Eletropaulo Metropolitana and Light Telecom.

The operation, which awaits approval from Brazilian authorities,
is the result of a share exchange between the two groups. The
agreement marks "an important phase in EDF's strategy to make
Light the focal point of the group's development in Brazil and in
Mercosur", the French power company said.

Light, which was privatized in 1996, is responsible for
distributing electricity to 3.3 million clients in the state of
Rio de Janeiro, and has a generation capacity of some 900 Mw.


SCHWEITZER-MAUDUIT: Takes 2Q Charge To Restructure Brazil Ops
-------------------------------------------------------------
- Excluding Unusual Item, Second Quarter Earnings Per Share  
  Expected To Be $.52 to $.54

Schweitzer-Mauduit International, Inc. (NYSE: SWM) announced July
16, 2001 a plan to restructure its Brazilian operations and exit
the printing and writing uncoated papers business in Brazil in
response to current business conditions.  A pre-tax charge of
approximately $4.5 to $5.0 million will be taken in the second
quarter of 2001 to implement this restructuring.  Excluding this
unusual item, the Company anticipates diluted earnings per share
for the second quarter of 2001 to be in the range of $.52 to $.54
per share.  Second quarter diluted earnings per share in 2000
were $.41.

- Brazilian Restructuring

Wayne H. Deitrich, Chairman of the Board and Chief Executive
Officer, commented that, "Recent changes in Brazilian business
conditions made it necessary for Schweitzer-Mauduit to reassess
its ability to continue to compete effectively in the printing
and writing uncoated papers market.  Sales volumes during the
past six months have been unfavorably impacted by a slowdown in
the Brazilian printing and writing papers market as well as by a
decision by the Company to reduce its sales of certain grades of
these papers that have been negatively impacted by ICMS, a form
of value-added business tax.  In addition, the recently enacted
electricity rationing program in Brazil has necessitated
production curtailments in our Brazilian operations. The printing
and writing uncoated papers business is our least profitable
product line in Brazil while being our largest electricity user."

The decision to exit the printing and writing uncoated papers
business in Brazil will result in a pre-tax charge in the second
quarter of 2001 of approximately $4.5 to $5.0 million, or $.20 to
$.22 per share, for a non-cash write-off of assets.  In addition,
a further pre-tax charge of approximately $0.5 to $0.7 million,
or $.02 to $.03 per share, will be taken in the third quarter,
primarily related to employee termination and severance costs.
Schweitzer-Mauduit do Brasil's net sales of printing and writing
uncoated papers totaled approximately $25 million in 2000.  
Because of cost reduction steps to be implemented as part of the
restructuring, exiting the printing and writing uncoated papers
business is not expected to have a material impact on ongoing
operating results after the restructuring is fully implemented,
which should occur by year-end 2001.

- Brazilian Energy Situation

In late May, the Brazilian government announced the details of
its electricity rationing program which has an overall objective
of a 20 percent reduction in electricity consumption and mandates
a 25 percent reduction in electricity consumption by the paper
industry in the most populated and industrialized regions of
Brazil.  The reduction is calculated from prior-year average
electricity consumption.  The reduction must be measured and
achieved for consecutive thirty-day periods commencing May 31,
2001.  Failure to achieve the mandated reductions would result in
higher electricity rates and cuts in electrical power service.  
The duration of the government's energy reduction directive is
uncertain although it is expected to last at least six months,
through the traditional "dry period" in Brazil.  The government's
forced consumption reduction program is in response to unusually
low water levels in the lakes and reservoirs supplying Brazil's
hydroelectric facilities that provide 90 percent of that
country's electricity.

In response to the Brazilian government's energy reduction
directive, Schweitzer-Mauduit do Brasil implemented a four-part
electricity reduction program.  All nonessential nonmanufacturing
uses of electricity are being eliminated including cuts in air
conditioning, reduced lighting and changes in the operation of
the water and effluent treatment plants.  Manufacturing process
modifications are being implemented to achieve more energy-
efficient usage of equipment where product quality will not be
compromised.  A comprehensive energy conservation training
program is being conducted for Brazilian employees and contracted
service providers of the Company to increase awareness and
solicit ideas for additional electricity reduction.  To achieve
the 25 percent electrical consumption reduction target, it has
also been necessary to implement production curtailments.  
Machine downtime has been taken to reduce the production of the
Company's least profitable products.

Mr. Deitrich added that, "Schweitzer-Mauduit does not expect the
government's electricity reduction program to significantly
affect the demand for or its ability to produce tobacco-related
papers.  Likewise, the availability of the Company's major raw
materials such as wood pulp, chemicals and chalk and the ability
to receive raw materials and ship finished product are not
expected to be materially impacted.  Exiting the printing and
writing uncoated papers business will permit Schweitzer-Mauduit
do Brasil to better focus on and service its other product
lines."

Anticipated Second Quarter Results

Excluding the unusual charge associated with restructuring  the
Brazilian operations, the Company anticipates diluted earnings
per share for the second quarter of 2001 to be in the range of
$.52 to $.54 per share. Operating profit improvement is
anticipated in both the French and U.S. business units compared
with the prior-year quarter.  Results for the quarter are
expected to benefit from increased tobacco-related papers sales
volumes, lower wood pulp costs and improvement in average selling
prices.  The average per ton list price of northern bleached
softwood kraft pulp in the United States was $570 per metric ton
in the second quarter of 2001 compared with $680 per metric ton
in the second quarter of 2000.  These positive factors will be
partially offset by higher purchased energy costs and expenses
related to the banded cigarette paper project and resultant
higher cost of operations at the Spotswood, New Jersey mill.

Schweitzer-Mauduit International, Inc. is a diversified producer
of premium specialty papers and the world's largest supplier of
fine papers to the tobacco industry.  It also manufactures
specialty papers for use in alkaline batteries, vacuum cleaner
bags, overlay products, business forms and printing and packaging
applications.  Schweitzer-Mauduit and its subsidiaries conduct
business in over 90 countries and employ 3,500 people worldwide,
with operations in the United States, France, Brazil and Canada.  



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C O L O M B I A
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SEVEN SEAS: Company Profile
---------------------------
NAME:  Seven Seas Petroleum Inc.
       5555 San Felipe, Suite 1700
       Houston, TX 77056

PHONE: 713-622-8218

FAX: 713-621-9770

WEBSITE: http://www.sevenseaspetro.com

TYPE OF BUSINESS: Seven Seas Petroleum Inc. is an independent oil
                  and gas exploration and production company
                  operating in Colombia, South America. The
                  company's primary emphasis is on further
                  exploration, development and production of the
                  Guadas Oil Field, located in Colombia's
                  prolific Magdalena Basin.

SIC: Oil And Gas Field Exploration Services [1382]

EMPLOYEES: 73 (as of the year 2000)

TOTAL ASSETS: $ 258.4 million (quarter ended Mar 31, 2001)  

TOTAL LIABILITIES: $147.8 million (quarter ended Mar 31, 2001)

SHARES OUTSTANDING: 37.8 Million (as of 03/31/01)

CORPORATE DEBT: $110 Million in Senior Subordinated Notes

TRIGGER EVENT: On April 3, 2001, Seven Seas Petroleum Inc.
               announced that Arthur Andersen LLP, in its
               auditor's report on the Company's December 31,
               2000 financial statements, stated that the
               company's current financial position, in the
               absence of additional financing to meet existing
               commitments and capital needs, raised "substantial
               doubt about its ability to continue as a going
               concern."

CHAIRMAN, CEO, MANAGING DIRECTOR & DIRECTOR: Mr. Robert A. Hefner
III

PRESIDENT, COO, CORPORATE SECRETARY & DIRECTOR: Mr. Larry A. Ray

VP FINANCE & CFO: Mr. Ronald A. LeFaive

LAST TCR-LA HEADLINE DATE: Monday, July 30, 2001, Vol. 2, Issue
147



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M E X I C O
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CINTRA: American Airlines Expresses Interest In Bidding
-------------------------------------------------------
The forthcoming privatization of Mexican carriers Aeromexico and
Mexicana, both currently under government-owned holding company
Cintra's control, has drawn interest from U.S.-based American
Airlines, Mexican financial daily El Economista said Monday.
According to Don Carty, an American Airlines executive, the
carrier will probably make an attempt to form some sort of
association with a leading Mexican carrier to bolster the
company's services to destinations such as Miami, Dallas and
Mexico City. Carty said he lacked sufficient details to comment
on the various advantages of two proposed sites for a new airport
for Mexico City. However, he said he fully supported any
improvement in infrastructure for the airline industry in Mexico,
and expected such efforts to boost Mexico's potential as a
destination for air travelers.


COMERCI: European Firm Eyes 25-Percent Stake
--------------------------------------------
An unidentified European retail company is contemplating a 25-
percent stake in Mexican No. 2 supermarket retailer Controladora
Comercial Mexicana (COMERCI), Mexico City daily Reforma reported
Tuesday. The equity position likely to be sold is reportedly
owned by the Gonzalez Zabalegui family. According to reports,
Comerci is going to use the proceeds of the sale to counter
increasingly intense competition from the country's No. 1
retailer, Wal-Mart Mexico.

Analysts at Grupo Financiero Banorte earlier warned that
Comerci's recent sales results show that the company is
continuing to lose market share to Wal-Mart Mexico. Banorte
analysts described Comerci's continuing loss of market share as
`quite troubling.'

Just recently, the supermarket retailer said it would cease
releasing monthly sales figures, a move seen by Salomon Smith
Barney retail sector analysts as an indication of the severity of
the company's current situation.


GALEY & LORD: Company Profile
-----------------------------
NAME: Galey & Lord
980 Avenue of the Americas
New York, NY 10018

TELEPHONE: (212) 465-3000

TYPE OF BUSINESS: Galey & Lord, is a global manufacturer of
                  textiles for sportswear, including cotton
                  casuals, denim and corduroy, as well as a major
                  international manufacturer of workwear home
                  fashions. In order to offer customers a
                  complete package of fabrics and garments from
                  one source, the Company has established garment
                  manufacturing operations, Swift Denim, Klopman
                  International and Home Fashion Fabrics.

SIC: Broadwoven Fabric Mills, Cotton [2211]

EMPLOYEES: 11, 060 (last reported count)

TOTAL ASSETS: $874.1 million (quarter ended Mar 31, 2000)

TOTAL LIABILITIES: $819.9 million (quarter ended Mar 31, 2000)

TRIGGER EVENT: Due to the difficult business environment, Galey &
               Lord, Inc. announced that its board of Directors
               has approved a number of strategic alternatives,
               including the discontinuation of Galey & Lord
               Service Company, N.A., the Company's garment
               making operations in Mexico, and the consolidation
               of its greige fabrics operations, which includes
               the closure of its Asheboro, North Carolina
               wearing facility and Caroleen, North Carolina
               spinning facility. These operations will be phased
               out over the next several months. In addition to
               these actions, the Company has undertaken
               reductions of its salaried overhead approximately
               by 5%.
  
CHAIRMAN, PRESIDENT & CEO: Mr. Arthur C. Weiner

EXEC. VP-MANUFACTURING: Charles Blalock

LAST TCRLA HEADLINE DATE: Tuesday, July 31, 2001, vol. 2, Issue
148


GRUMA SA: Bimbo Execs Predict Breddy's Demise Within 6 Mos
-----------------------------------------------------------
The entry of Grupo Industrial Maseca's (Gruma) Breddy brand
sliced-bread into the Mexico City market will not be a threat to
Mexican leading bread and baked-goods maker Grupo Bimbo, Mexican
financial daily El Economista said Tuesday. According to the
predictions of unidentified Bimbo executives, Breddy, which is
made by Gruma subsidiary Grupo Panificador Azteca, would not last
more than six months in the Mexico City market.

TCR-LA earlier reported that Gruma SA might sell its bread
business if the division doesn't turn a profit by year's-end.
According to the company's chief of staff, Jose Maria Gonzalez,
the bread business is now under "total and complete review" due
to losses since it commenced operations in late 1998 with a $50-
million plant near Monterrey.


GRUPO DINA: Expresses Optimism In Bond Buyback Operation
--------------------------------------------------------
Struggling to buy back 160 million dollars in bonds at a
discount, Mexican heavy-vehicle maker Consorcio Grupo Dina
remains in negotiations with bondholders of the transaction,
Mexico City daily Reforma disclosed Tuesday. According to
reports, Dina is having a difficult time dealing with bondholder
Joseph Littlejohn & Levy, but the company is hopeful it will
eventually move ahead with the transaction. Dina is believed to
have called a shareholder assembly at which the company's second
quarter financial results will be presented. In terms of the
proposed bond buyback, Dina plans to adopt a series of legal and
financial measures to restructure the debt.


GRUPO SIDEK: Council Approves Divestment Plan
---------------------------------------------
Mexico's Grupo Sidek's so-called Dis-Incorporation Council has
approved the company's Alternative Divestment Plan, to which an
assembly of company shareholders agreed on June 29, Mexico City
daily Reforma reported Tuesday. The plan will see the sale of 29
packages of company assets during the fourth quarter of the
current year. The company has striven to divest the assets as
quickly as possible, including hotels, golf courses and marinas.

The council reportedly includes commercial banks Banamex, Banorte
and BBVA-Bancomer, along with bank bailout agency IPAB and state-
run development bank Nafin.


GRUPO TRIBASA: 1H01 Results: Net Loss Nearly Doubles
----------------------------------------------------
Mexican builder Grupo Tribasa posted a decline in revenues during
the first half of this year, to 1.265 billion pesos, compared to
the same-year ago period of 1.616 billion pesos, Ft.com reported
Monday. Operating losses during this year's first-half stood at
39 million pesos, while in the same period a year ago, it was at
104 million pesos. The company registered a first-half 2001 net
loss of 515 million pesos, almost doubling the amount of 287
million pesos posted in the comparable period of the previous
year.


SAVIA: 2Q01 Results: Company Says Turnaround Steps Working
----------------------------------------------------------
In a company press release surrounding its second quarter 2001
results, Savia reported the following:

2Q'01 HIGHLIGHTS

*  Savia is fully focused on consolidating its global leadership
in agro-technology through strengthening the operations of its
subsidiary Seminis, the world's leading developer, producer and
distributor of fruit and vegetable seeds.  During the quarter,
Savia finalized the divestiture of Seguros Comercial America and
the subsidiaries of Empaques Ponderosa.  In addition, it reached
a final agreement with its lending banks, reduced its bank debt
by US$913 million and met its financial obligations.  On June 30,
2001 the Company's outstanding bank debt amounted to US$80
million and is due in October 2002.

*  As previously announced, the Company has undertaken a series
of measures designed to improve its operations and those of its
subsidiaries.  To better illustrate the impact of these measures
and more accurately reflect Savia's current financial and
operating condition, this announcement contains the discussion of
results both including and excluding non-recurring extraordinary
charges registered by Seminis.  At the same time, the financial
tables provided with this announcement include these
extraordinary charges.

*  Savia posted net consolidated sales from continuing operations
for the quarter of US$181 million.  Excluding non-recurring
charges, the Company posted a 40% gross margin and a 30% year-
over-year reduction in operating expenses. As a result of the
above-mentioned charges, the Company reported a Ps.  US$34
million decline in operating losses and a positive EBITDA.

*  In June, Seminis reached a final agreement with its lending
banks and signed a permanent amendment to the terms and
conditions under its outstanding $310 million syndicated credit
facility.  For the third consecutive quarter, Seminis registered
an improvement in its results. EBITDA for the quarter, excluding
non-recurring restructuring charges and charges for inventory
write-offs, increased 3.7 times.  Cash flow generated by Seminis
during the quarter allowed the company to reduce bank debt and
account payables by a total of US$20 million, and to lower
operating expenses by US$11 million, or 14%.  The actions taken
during the quarter optimize costs and expenses were undertaken
with careful consideration for the Company's medium and long-term
growth strategy.

DISCUSIONS OF RESULTS

Savia S.A. de C.V. announced July 27 results for the three- and
six-month period ended June 30, 2001.  To better illustrate the
impact of these measures undertaken by Savia to improve its
operations and those of its subsidiaries and more accurately
reflect the company's current financial and operating condition,
this announcement contains the discussion of results, both
including and excluding non-recurring extraordinary charges
registered by Savia's subsidiary Seminis.  Additionally, results
for 2001 and 2000 of the two subsidiaries that were divested
during the second quarter Seguros Comercial America and Empaques
Ponderosa have been classified as discontinued operations.

SECOND QUARTER 2001 RESULTS

Net Consolidated Sales

Net consolidated sales from continuing operations for the period
reached US$181 million, showing a slight decline from the same
quarter last year. Sales for the second quarter of last year
include results from discontinued operations in the seed and
produce businesses as well as other non-core businesses.  
Including results from this discontinued operations, net sales
for the second quarter of this year declined year over year by
18%.  Net consolidated sales for the quarter were broken down as
follows:  66% were denominated in U.S. dollars, 23% in Euros, 7%
in Mexican Pesos and the remaining 4% in Asian currencies.

Consolidated Operating Income

Operating results from continued operations for the quarter
improved by US$34 million year-over-year.  Excluding the impact
of non-recurring charges at Seminis, the Company posted a US$5
million operating loss, representing a substantial improvement
from the US$39 million operating loss recorded for the second
quarter of 2000.  Non-recurring charges included US$67 million
previously announced extraordinary charges in connection with
inventory write-offs and personnel reduction at Seminis.  
Including the above-mentioned charges, the Company posted a US$73
million operating loss.

Net Consolidated Income

For the quarter and considering the divestitures, restructuring
charges at Savia and excluding the non-recurring charges at
Seminis, Savia posted a US$26 million net consolidated loss from
continued operations.  This compares with a net consolidated loss
of US$99 million for the same period last year, resulting into
the second consecutive quarter in which the Company was able to
cut losses and move closer to profitability.  Including the
impact of the extraordinary charges and expenses, majority loss
for quarter reached US$78 million, or a loss of Ps.1.54 per share
(US$0.67 per ADR.)

SECOND QUARTER RESULTS BY SUBSIDIARY

Seminis

Seminis' (Nasdaq: SMNS) sales, excluding the impact of
discontinued operations and the negative currency impact against
the U.S. dollar, increased by 7% year-over-year.  Sales in North
and South America increased by 19% mainly as a result of the
sales force reorganization.  Excluding non-recurring
restructuring charges and the inventory write-off, Seminis' gross
margin improved by 20% while operating expenses declined by 31%.  
The actions taken to optimize costs and expenses were executed
with careful consideration of the company's medium and long-term
growth strategy. Operating income for the quarter amounted to
US$10 million reverting the US$22 million operating loss recorded
for the same period last year.  As a result of the improved
operations, Seminis' EBITDA increased 3.7 times year-over-year
allowing the company to reduce bank debt and accounts payable by
a total of US$20 million.

Seminis' sales for the quarter, including discontinued operations
nd the negative currency impact against the U.S. dollar, amounted
to US$107 million, a 10% decline from the same period last year.  
Operating loss including extraordinary charges reached US$58
million, an increased figure compare to the US$22 million
achieved in the same period previous year.

Bionova

Sales for the quarter at Bionova (AMEX: BVA) were US$61 million,
a 16% year-over-year decline.  The decline in sales resulted
mainly from the divestiture of Tanimura Distributing
Incorporated, a produce distribution company based in Los
Angeles, California.  Excluding the impact of discontinued
operations, sales reached US$69 million, a 4% decline from the
same period last year.  For the quarter, Bionova reported an
operating loss of US$6 million, similar to the operating loss
recorded for the same period last year.  This reflects the
improvement registered in the company's produce operations in the
United States, Mexico and Canada.

FIRST HALF 2001 CONSOLIDATED RESULTS

Net Consolidated Sales

Net consolidated sales for the first half amounted to US$416
million, a 16% year-over-year decline.  This decline results from
discontinued operations, the negative currency impact against the
U.S. dollar and a slight decline in sales.  Net consolidated
sales for the quarter were broken down as follows:  60% are
denominated in U.S. dollars, 25% in Euros, 7% in Mexican Pesos
and the remaining 8% in Asian currencies.

Consolidated Operating Income

Consolidated EBITDA for the first half, excluding extraordinary
charges increased 3.3 times year-over-year, as a result of the
10% improvement in gross margins and a 21% reduction in operating
expenses.  Excluding extraordinary charges for the period, the
Company recorded a US$19 million operating income, and a fivefold
year-over-year increase in EBITDA.  Including extraordinary
charges, the Company posted a US$49 million operating loss,
compared with a US$8 million operating loss for the same period
last year.

Net Consolidated Income

Excluding extraordinary charges at Seminis, the Company reported
a net consolidated loss for the quarter of US$25 million, five
times lower than that reported for the first half of 2000.
Including extraordinary charges, the Company recorded a net loss
of US$93 million, a US$25 million, or 21%. Majority loss for
period reached US$95 million.

FIRST HALF RESULTS BY SUBSIDIARY

Seminis

Seminis' sales for the period reached US$260 million, a 17% year-
over-year decline.  The reduction in sales results from the
negative currency impact against the U.S. dollar, the divestiture
of non-core businesses, and a slight decline in sales.  Excluding
extraordinary charges, Seminis recorded operating income of US$43
million.  Including extraordinary charges the company posted a
US$25 million operating loss.

Bionova

Bionova's sales for the first half of the year amounted to US$128
million, a 2% decline over last year. During the period, Bionova
registered a US$3 million operating loss, representing a US$11
million improvement from the US$14 million operating loss posted
last year.

KEY DEVELOPMENTS

As previously announced, during the first half of 2001 Savia
underwent a restructuring of its financial structure and
operations.  On June 28, 2001, Savia reached a definitive
agreement with its lending banks.  As a result, it reduced its
total bank debt by US$913 million and met its financial
obligations.  Outstanding debt on June 30, 2001, amounted to
US$80 million, due in October 2002.  At the same time, on June 1,
2001, Seminis reached a definitive agreement with its lending
banks and signed a permanent amendment to the terms and
conditions under its outstanding $310 million syndicated credit
facility.

On June 22, Savia announced that it had reached a final agreement
under which the Dutch company ING Insurance International B.V.
acquired all of the remaining outstanding shares of the Company's
subsidiary that holds Seguros Comercial America (SCA) for a total
consideration of US$791 million.  This amount was based on an
enterprise value of US$1,750 million.  As a result of this
transaction, ING owns 86.69% of the share capital of SCA.

Finally, on June 6 Savia finalized the sale of the three
subsidiaries of Empaques Ponderosa to Corporacion Editorial
Mexicana.

   

===============
P A R A G U A Y
===============

PETROPAR: President Reveals Company Is Bankrupt
-----------------------------------------------
Petropar President Genaro Ramon Burro announced that the oil
company is officially bankrupt. The company generated losses
totaling US$33 million after the state obligated it to sell
gasoil at subsidized prices last year leading to its current
state, South American Business Information said Tuesday.

So far this year, some US$7 million losses are blamed on the same
market conditions. According to Mr. Burro, the gasoil price
deficit is estimated at G$157 per liter. By the end of last June,
Petropar had debts with foreign suppliers amounting to US$56.7
million. Meanwhile, Texaco complained about Petropar's lower
gasoil supply, which started just recently (100,000 liters less
than expected).



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

PESQUERA HAYDUK: Restructures US$74 Million Of Debts
----------------------------------------------------
Fishing company Pesquera Hayduk has restructured debts, which
totaled US$74 million upon the start of the restructuring, and
further plans to reduce them to US$53 million next October, South
American Business Information reported Tuesday. Pesquera
forecasts a turnover of US$100 million for this year, 85 percent
of which is to be generated by production of fish meals and oils.
The company produced 120,000 tons of fish meals over the first-
half of this year. It forecasts producing 500,000 boxes of canned
fish during this year. The company, according to the report, will
form an alliance with distributors within the next 45 days so as
to launch its own canned fish brand into the market.



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

SIDOR: "Green Audit" Shows Environmental Performance Better
-----------------------------------------------------------
The Environment Ministry's latest "green audit" on Venezuelan
integrated steel maker Sidor indicated that the company has
improved on its environmental control's compliance, Business News
Americas reported Tuesday. The latest audit indicated that Sidor
had complied with all 57 environmental conditions established by
the Ministry for the sale.

Rebeca Erebrie, environment, science and technology VP for the
country's state heavy-industry holding company CVG, revealed that
there has been "significant improvement" in dangerous waste
storage, plus progress in the direct reduction iron plants, the
steel works, the sedimentation lakes and surrounding land. The
progress indicates a willingness to implement improvements as
agreed when multinational consortium Amazonia bought a 70-percent
stake in Sidor early 1998. CVG holds the remainder.

Another audit will be carried out before year-end.




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

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

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