TCRLA_Public/010907.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, September 07, 2001, Vol. 2, Issue 175



AEROLINEAS ARGENTINAS: Pellegrini Still Interested As A Buyer
SIDERAR: Announces Fiscal YE Results; Lower Sales And EBITDA


PSINET: Company Profile
TRANSBRASIL: Facing Potential Roadblock From Airports


SEVEN SEAS: Reports Drilling And Operations For Tres Pasos


GRUPO TELEVISA: Expects Radiopolis Profits Pending Merger Ruling
LTV CORP.: Company Profile
MAXCOM TELECOMUNICACIONES: Improving Despite Slow Economy
PEMEX: Consultant Concludes Technologies `Behind The Times'
PEMEX: Wastes Money On Unviable Project Scheme
SINGER N.V.: 2Q and Six-month Results Show Better Profitability


ORION/UNION: US$14M Repatriation Proceedings About To Start

      - - - - - - - - - -


AEROLINEAS ARGENTINAS: Pellegrini Still Interested As A Buyer
Juan Carlos Pellegrini reaffirmed his interest in acquiring the
ailing Sociedad Estatal de Participaciones Industriales unit
Aerolineas Argentinas in which he was a former chief executive,
AFX-Europe reported Wednesday. Earlier reports stated that
Pellegrini does not plan to lay off staff. In fact, employees
would receive 20 percent of Aerolineas' equity under the terms of
his proposed agreement. In addition, Pellegrini's plan includes
an deal with Airbus Industrie and Boeing Co to upgrade
Aerolineas' fleet and provide more cost-efficient aircraft.

SIDERAR: Announces Fiscal YE Results; Lower Sales And EBITDA
In a company press release, Siderar S.A.I.C. (BCBA: ERAR),
announced Monday its results for Fiscal Year ended June 30, 2001.


* Reduction of Gross margin from 21.7% for FY00 to 18.8% for
FY01, due to higher exports and lower international steel prices.

* 3.1% increase in total shipments. Record export shipments of
1,127.6 thousand tons.

* Impact of doubtful account provisions of Ps. 17.7 million and
extraordinary reestructuring costs of Ps. 7.0 in FY01.

* 29.3% reduction in Equity Loss yoy, given the lower losses
recorded by Sidor.

* Net Financial Debt reduction of Ps. 42.1 million as Liquidity
Reserve increased by Ps 84.4.

Siderar recorded a consolidated Net Loss of Ps. 32.3 million for
the Fiscal Year ended June 30, 2001 (FY01) compared to Net Income
of Ps. 1.4 million posted for Fiscal Year 2000 (FY00).

Earnings per share (EPS) and per ADS were Ps. (0.0930) and Ps.
(0.7443) respectively based on a total of 347,468,771 shares
outstanding at June 30, 2001. Each ADS represents 8 (eight) class
"A" shares.

Higher shipments to the export market and the drop in
international steel prices impacted negatively on Siderar's Gross
Margin, which decreased from 21.7% during FY00 to 18.8% for the

Overall sales volume increased 3.1% yoy and reached an amount of
2,151.2 thousand tons sold. Export shipments totaled 1,127.6
thousand tons, a record amount that represented a 18.3% increase
over last FY figures. This improvement was partially offset by a
reduction in export average prices. Domestic market shipments
decreased 9.7% compared to those of FY00, due to a lower level of
activity in steel consuming sectors. Average cost per ton
decreased 3.3% (12 Ps./ton) in comparison with the previous FY.

Selling expenses increased Ps. 13.4 million mainly due to an
increase in doubtful account provisions in order to reflect the
credit risk situation of some clients.

Given the reduction in gross margin and the increase in selling
expenses, EBITDA margin decreased from 19.2% for FY00 tos 15.2%
FY01. EBITDA for FY01 was Ps. 139.9 million.

The lower losses recorded by Sidor impacted positively on the
equity loss recorded during FY01, which was Ps. 19.4 million, an
amount 29.3% lower than that recorded for FY00.

During FY01, the Company carried out a restructuring plan which
implied extraordinary expenses of Ps. 7.0 million.  The structure
costs reduction obtained by this plan should be reflected in next
Fiscal Year.

Net Financial debt was reduced 8.3%, (from Ps.506.8 million for
FY00 to Ps.464.7 million for FY01) as the Company increased its
Cash and Other Current Investments by Ps. 84.4 million.


PSINET: Company Profile
      44983 Knoll Square
      Ashburn, VA 20147

TELEPHONE: (703) 726-4100



TYPE OF BUSINESS: PSINet Inc. is a provider of Internet and e-
                  commerce solutions to businesses. The Company
                  offers an integrated suite of value-added
                  products that enables its customers to use the
                  Internet for mission-critical applications. The
                  Company provides corporate Internet access and
                  private networks, including dedicated and dial-
                  up Internet access; Web hosting, co-location
                  and managed security; consulting solutions; and
                  voice, fax and other audio-video products and


EMPLOYEES: 5,000 (last reported count)

TOTAL ASSETS: US$2,577,100,000 (as of 12/31/00)

TOTAL LIABILITIES: US$4,599,300,000 (as of 12/31/00)

TRIGGER EVENT: PSINet Inc. ("the Company" ) (OTC BB: PSIXE) and
               24 of its operating subsidiaries in the U.S. have
               voluntarily filed for protection under Chapter 11
               of the U.S. Bankruptcy Code in the U.S. Bankruptcy
               Court for the Southern District of New York in
               June this year. Four Canadian subsidiaries also
               have filed for protection under the Companies'
               Creditors Arrangement Act ("CCAA") statutes,
               enacted in Canada in 1985, in the Ontario Superior
               Court of Justice. But the filing didn't include
               the businesses and operations of PSINet's
               operating subsidiaries in Asia, Europe, Latin
               America or the Company's Metamor consulting

               Prior to the filing, the Company announced that
               its cash, cash equivalents, short-term investments
               and marketable securities were not expected to be
               sufficient to meet the Company's anticipated cash




                                         NEW YORK OFFICE:
                                         75 Wall Street
     New York
     NY 10005-2889
             United States
                 Tel (+1) 212 429 2000
              Fax (+1) 212 429 2127

Bosque de Alisos No 47-B
4th Floor
Col Bosques de las Lomas
05120 Mexico, DF
Tel (+52) 5 258 3000
Fax (+52) 5 258 3100

PSINet Contacts:   Jim Lucas
                   Sandra Sternberg
                   Jason Thompson
                   Daniel Kim
                   The Abernathy MacGregor Group
                   Tel: 703-726-1668 (PSINet Worldwide
                   Tel: 213-630-6550 or 212-371-5999 (After June  
                   1, 2001)

Last TCRLA Headline DATE: Wednesday, Sep. 05, 2001, Vol. 2, Issue

TRANSBRASIL: Facing Potential Roadblock From Airports
Infraero is looking to block Transbrasil from operating in the
airports it manages. The Brazilian air transportation company now
finds itself in hot water due to the R$9.2-million owed to
Infrarero including passengers' board rate, landing and staying
of the aircrafts in between July and August, O Globo reported
Wednesday. Infraero demanded the suspension of Transbrasil
aircraft due to the non-payment of the debt but an injunction
allowed the carrier to use the facilities. Transbrasil, on the
other hand, does not recognize the R$9.2-million debt as valid,
claiming it has already paid R$164,000 in fees.


SEVEN SEAS: Reports Drilling And Operations For Tres Pasos
Seven Seas Petroleum Inc. (Amex: SEV) announced Wednesday that it
has completed drilling of the Tres Pasos 5-W to a total measured
depth of 8,262 feet.  Drilling took longer than anticipated due
to an adjustment in the angle and direction of the wellbore to
intersect the Cimarrona formation at the optimal location.  The
Company will report results after production testing is

The Company also reported that Guaduas Oil Field production
continues at a gross rate of approximately 7,000 barrels per day
(approximately 3,200 barrels per day net to Seven Seas).

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 Guaduas Oil Field,
located in Colombia's prolific Magdalena Basin.


GRUPO TELEVISA: Expects Radiopolis Profits Pending Merger Ruling
Televisa Vice President of Finances Alfonso de Angoitia affirmed
that merger plans between Radiopolis and Grupo Acir are still
intact, Mexico City daily Reforma reported Wednesday. But while
it awaits the decision of the court regarding the proposed
merger, Televisa seeks for support for Radiopolis, the company's
radio division, which is currently in financial difficulties.
Televisa, in the midterm, wants to turn Radiopolis into a
profitable business with the help of an operator. According to
the Mexican Stock Exchange (BMV), Radiopolis registered an
operating loss of 62,000 pesos due to low sales resulting from
the nation's economic slowdown.

LTV CORP.: Company Profile
      200 Public Square
      Cleveland, OH 44114

TELEPHONE: (216) 622-5000

FAX: (216) 622-1066



EMPLOYEES: 16,500 - (last reported count)

TYPE OF BUSINESS: LTV Corporation is a domestic integrated steel
                  producer; a producer of mechanical and
                  structural steel tubing products; a producer of
                  bimetallic wire products; and a manufacturer of
                  pre-engineered metal buildings systems.


TOTAL CURRENT ASSETS:  $1,332,000,000 (six months ended June 30,

TOTAL CURRENT LIABILITIES: $958,000,000 (six months ended June
                           30, 2001)         

TRIGGER EVENT: In December 2000, LTV Corporation and 48 of its
               wholly owned subsidiaries filed voluntary
               for reorganization under Chapter 11 of the United
               States Bankruptcy Code. In its petitions, filed in
               the U.S. Bankruptcy Court in the Northern District
               of Ohio, Eastern Division in Youngstown, LTV
               attributed the need to reorganize to a weakening
               U.S. economy and the inaction of the government in
               enforcing long-established U.S. trade laws. LTV
               said that unfairly priced imports have driven
               steel prices to 20-year lows.  

PUBLIC SECURITIES: 104,681,331 shares of common stock (as of June  
                   30, 2001)


CFO/Sr. VP: Thomas Garrett, Jr.

Sr. VP/GEN.COUNSEL/SEC.: Glenn Moran

LAST TCR-LA HEADLINE DATE: Thursday, Sep. 06, 2001, Vol. 2, Issue

MAXCOM TELECOMUNICACIONES: Improving Despite Slow Economy
In a company press release, Maxcom issued the following
operational metrics update:

    * Maxcom reacts favorably to overcome the Mexican Economy
      slow down
    * Achieved 10,700 installed lines
    * Sold more than 17,100 lines
    * Disconnection percentage continues improving

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, announced Wednesday its
August 2001 operational metrics.

"We were able not only to maintain but to improve our growth
rates and exceed our operational targets by focusing on the
market segments where the recession has impacted the less. We
recognize the difficult situation that most businesses are
undergoing in Mexico, but we are anticipating an earlier recovery
of the SMEs, which continues to be out target market," said
Fulvio Del Valle, President and Chief Executive Officer.

Maxcom Telecomunicaciones, S.A. de C.V, headquartered in Mexico
City, Mexico, is a facilities-based telecommunications provider
using a "smart-build" approach to deliver last-mile connectivity
to small- and medium-sized businesses and residential customers
in Mexico City and Puebla. Maxcom launched commercial operations
in May 1999 and is currently offering local, long distance and
data services. In March 2000 the Company issued US $300 million
in 13.75% notes due 2007.

             Jan01 Feb01 Mar01  Apr01  May01  Jun02 Jul01  Aug01
Construction   436 1,650   589  3,220  6,860  9,150 14,560 23,334
Order entry  3,105 3,751 3,161  3,756  3,561  6,026  8,588 17,178
Installation 1,806 2,125 2,093  1,725  3,367  5,890  6,437 10,686
Disconnection1,382 1,521 1,679  2,387  1,500  2,242  1,720  1,728
Lines in
(EOP)    27,334 27,938 28,352 27,670 29,557 33,205 37,922 46,880
Business lines 64%   62%   60%    57%    55%    47%    45%    40%
lines         36%   38%   40%    43%    45%    53%    55%    60%
Lines sold
Per sales rep  22    28    25     31     32     44     44     66
Customers11,822  12,695 13,208 13,818 14,259 18,653 20,908 25,909

                   Changes versus
                    Jul01  1H01 avg
    Construction       60%   539%
    Order entry       100%   341%
    Installation       66%   277%
    Disconnection       0%    -3%
    Lines in service   24%    62%
    Business lines    -11%   -31%
    Residential lines   9%    42%
    Lines sold per
     Sales rep         49%   117%
    Customers          24%    84%

For more information contact:
Mexico City, Mexico
Jose-Antonio Solbes
(525) 147-1125

PEMEX: Consultant Concludes Technologies `Behind The Times'
Following a five-month investigation into state-owned oil
monopoly Petroleos Mexicanos (Pemex), U.S. consulting firm Arthur
D. Little International found out that the Mexican company is
experiencing a technological crisis that puts it behind the main
transnational companies with which it competes, Mexico City daily
El Universal revealed Wednesday. According to the consulting
firm, which was contracted to evaluate Pemex's technology,
Pemex's main activities, exploration and production, are
technology behind the times because of the tendency of its
executives to acquire "old" technologies. Cited in particular is
its subsidiary Pemex Exploration and Production.

Pemex recently warned that it could face `collapse' unless it
gets more private money. The company requires investments of $33
billion in production and exploration for oil and gas in the next
five years. In addition, Pemex needs about $20 billion to upgrade
its refining system, and $1 billion to boost its petrochemical
output, which has fallen to just over one-half of what it was
five years ago.

PEMEX: Wastes Money On Unviable Project Scheme
Despite the federal government's warning that the Pidiregas
scheme is no longer viable for investments in the energy sector,
Petroleos Mexicanos (Pemex) has spent 21.629 billion pesos on
projects under Pidiregas so far this year, Mexico City daily El
Universal reported Wednesday. According to the Energy Ministry,
Pemex exploration and production projects absorbed 64.6 percent
of those resources, and the rest went into the reconfiguration
and modernization of the National Refinery System. Energy
Minister Ernesto Martens revealed that Pemex was authorized
56.868 billion pesos for strategic projects to be financed
through Pidiregas in the 2001 federal budget. This year Pemex is
set to receive 35.676 billion dollars from the federal
government, 5.1 percent more than the previous year.

SINGER N.V.: 2Q and Six-month Results Show Better Profitability
In a company press release, Singer N.V. ("Singer" or the
"Company") announced Wednesday its results for the second quarter
of 2001 and for the six months ended June 30, 2001.

2001 Second Quarter Results

For the second quarter of 2001, ending June 30, Singer reported
consolidated revenues of $110.5 million. Revenues of Singer's 48
percent-owned Thailand affiliate, which amounted to $23.9 million
for the quarter, are not included in this total. Gross profit for
the quarter was $43.3 million, representing a gross margin of 39
percent on sales. Operating income for the period was $9.4
million; EBITDA (earnings before interest, taxes, depreciation
and amortization) was $15.6 million. The Company's net income for
the second quarter of 2001 was $4.0 million.

Included in operating income and net income for the quarter is
$1.2 million of expense relating to the amortization of
intangible assets, primarily the Singer trademark. Effective
January 1, 2002, the Company expects to adopt the accounting
standard, FASB 142, accounting for "Goodwill and Other Intangible
Assets", pursuant to which Singer will no longer amortize the
value of the trademark and most other intangible assets, reducing
amortization expense by about $1.2 million per quarter subject,
however, to any periodic adjustments which may be appropriate to
assure that the book value of the Company's intangible assets
reflect their fair value.

Singer's retail and related consumer credit operations accounted
for 71 percent of the Company's second quarter revenues (taking
into account the revenues of its non-consolidated affiliate in
Thailand) and 60 percent of operating earnings before Corporate
costs, eliminations and amortization of intangibles. Particularly
strong contributors to this segment were the retailing businesses
in Mexico, Thailand and Sri Lanka.

The Company's sewing business accounted for 29 percent of
Singer's second quarter revenues and 40 percent of operating
income. Sewing manufacturing and marketing operations in Brazil
were especially strong contributors to this segment. The
Company's results for the second quarter of 2001 were hurt by the
impact on the local sewing operation of the continuing economic
crisis in Turkey.

Financial statements of Singer's predecessor company are not
comparable to Singer's ongoing results and are not, therefore,
presented or discussed herein.

2001 Six-Month Results

For the six months ending June 30, 2001, the Company reported
consolidated revenues of $217.6 million. Revenues of Singer's
non-consolidated affiliate in Thailand accounted for an
additional $46.6 million. Gross profit for the six-month period
was $84.2 million, representing a gross margin of 39 percent on
sales. Operating profit for the six-month period was $16.2
million; EBITDA was $27.7 million. The Company's net income for
the first six-months of 2001 was $4.1 million. Expense relating
to amortization of intangible assets totaled $2.4 million for the
six-month period.

Continued Profitability

Mr. Stephen H. Goodman, Singer N.V.'s President and CEO noted
that, "We are very encouraged by the results reported for the
second quarter and for the first half of 2001. The second quarter
represents the third consecutive quarter of profitability since
the conclusion of the successful Chapter 11 Reorganization in
September 2000. Singer has returned to profitability following
four years of very substantial losses at its predecessor company.
Despite continuing economic uncertainties in many of the markets
in which the Company operates, Singer made substantial progress
in the second quarter; revenues grew 3.1 percent from the
previous quarter and gross, operating and net margins all showed
increases. We continue to have confidence that the consistent
execution of our recovery plan will result in continued improving
performance for the balance of 2001."

Share Distribution

The Company now anticipates that an initial distribution of the
common shares of Singer N.V. to the holders of allowed, general
unsecured claims against Singer's predecessor company should take
place later this month or early next month. It is not anticipated
that the Company's common shares will be listed on any U.S. or
overseas securities exchange, the NASDAQ National Market System,
the NASDAQ Small Cap Market, the OTC Bulletin Board or a similar
trading system in the near future. The Company anticipates,
however, that one or more brokerage firms will seek to make a
market for the newly distributed common shares through the "Pink
Sheets" quotation system. Singer's objective is for brokers and
market makers to provide quotations for the Company's common
shares using the "Pink Sheets" service at the time of, or shortly
after, the distribution of the common shares; however, no
assurances can be given as to approval by the NASD of the common
shares for quotation on the "Pink Sheets" system or the timing of
the commencement of any such trading or as to the effectiveness
of such trading should it commence.

About Singer N.V.

Effective September 2000, as a result of the successful Chapter
11 reorganization, Singer became the parent of several operating
companies formerly owned by The Singer Company N.V., as well as
acquiring ownership of the SINGER brand name, one of the most
widely recognized and respected trademarks in the world. Through
its operating companies, Singer is engaged in two principal
businesses, retail and sewing.

The retail business consists primarily of the retail distribution
of a wide variety of consumer durable products for the home in
selected emerging markets, primarily in Asia, Mexico and the
Caribbean. Retail sales activities in these markets are
strengthened by the availability to customers of consumer credit
services provided by the Company. In many of the markets where it
operates, Singer is recognized as a leading retailer of products
for the home.

The sewing business consists primarily of the distribution of
consumer and artisan sewing machines and accessories, produced by
Singer and certain third-party manufacturers, through
distribution channels operated by its sewing operating companies
and through third-party distributors and dealers, as well as
through the operating companies which operate Singer's retail
business. Singer is the world's leading seller of consumer and
artisan sewing machines, with an estimated worldwide unit market
share of approximately 29 percent (excluding China, the former
Soviet Republics and Eastern European countries).

To see company's financial statement:

CONTACT: Singer N.V.
         Barbara Wybraniec, 917/534-5373     


ORION/UNION: US$14M Repatriation Proceedings About To Start
A Paraguayan Central Bank spokesperson disclosed that
repatriation proceedings regarding the US$14 million that was
diverted from intervened Paraguayan banks Orion and Union into US
bank accounts is about to begin, Business News Americas reported
Wednesday. The Central Bank says it is going to instruct its
U.S.-based legal team to initiate the proceedings.

The unexplained disappearance of millions of dollars led to the
sacking of then banking regulator Carlos Pecci, as well as the
resignation of Central Bank chairman Washington Aswell. Pecci,
together with the brother of Paraguay's President Jose Ignacio
Gonzalez Macci and seven other public sector officials, are still
under investigation by the attorney general's office, for their
alleged involvement in the incident.

Pecci and one former Central Bank board member are under arrest
awaiting the results of the investigation. The attorney general's
office was due to file charges on October 2, but requested a six-
month extension to April 2, 2002.

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 and Edem
Psamathe P. Alfeche, 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
re-mailing and photocopying) is strictly prohibited without prior
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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,
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