/raid1/www/Hosts/bankrupt/TCRLA_Public/011002.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, October 2, 2001, Vol. 2, Issue 192

                           Headlines


B A R B A D O S

APW LTD.: Expands Executive Leadership Team For Restructuring


B O L I V I A

LAB: Workers Call For Government Intervention


B R A Z I L

MOULINEX: Court Announces SEB Bid
SHARP: Bovespa Halts Share Transactions On Bankruptcy Request
VARIG: Sues DAC Over Flight Reduction


C H I L E

LANCHILE: Secures Insurance Coverage, Restructuring Approval
LANCHILE: Maintains Strong Footing Despite Recent Crisis


E C U A D O R

FILANBANCO: Ecuador Delays Sale 30 Days On Depositors' Request


H O N D U R A S

GEOMAQUE EXPLORATIONS: Restructuring Period Extended To 10/18


M E X I C O

AEROMEXICO: Agrees To 11.05% Salary Increase To Prevent Strike
BANCA CREMI/OBRERO/ORIENTE/UNION: IPAB To Auction Properties
BANCA QUADRUM: Heading For Liquidation
BANCA QUADRUM: Company Profile
CORPORACION GEO: Sells P$135M 5-Yr. Bonds To Make Debt Payment
CORPORACION GEO: Forms Strategic Alliance With Autofin
MCMS INC.: Court Grants Financing Access; November Assets Sale


     - - - - - - - - - - - - -


===============
B A R B A D O S
===============

APW LTD.: Expands Executive Leadership Team For Restructuring
-------------------------------------------------------------
In a company press release, APW Ltd. (NYSE: APW), a leading
Technically Enabled Manufacturing Services (TEMS) Company,
confirmed Friday its Executive Leadership Team (ELT). APW's ELT
is now composed of Vice Presidents: Rick Carroll, Chief Financial
Officer; Tom Giordano, Global Supply Chain; Susan Hrobar, Human
Resources; Joe Lower, Corporate Development and Finance; Kash
Pandya, Europe and Asia Operations; Ralph Sandle, Americas
Operations and Dick Sim, Chairman, President and Chief Executive
Officer. At a recent APW Board of Directors meeting, Tom
Giordano, Kash Pandya and Ralph Sandle were appointed Officers of
APW Ltd.

Rick Carroll was elected Chief Financial Officer on April 26,
2001 and has worked for APW Ltd. and its predecessor company
since early 1996. Until his appointment as CFO, Rick had most
recently been President of APW's global thermal management
product line.

Tom Giordano has worked for APW Ltd. since its inception and for
its predecessor company since 1993, all in roles involving Global
Sourcing and Supply Chain Management. In the last two years, Tom
and his team have developed a proprietary private trading network
and associated hubbing system that are important and unique
elements of APW's large box supply chain solution. Dick Sim
commented: "The elevation of Tom to the ELT recognizes the
contributions his team have made in building a supply chain that,
with the cooperation of our alliance supply partners, is capable
of providing superior service to a challenging manufacturing
environment that deals with low-to-medium volumes, uneven demand
and involves a large number of customized parts."

Susan Hrobar is now responsible for the Human Capital of APW Ltd.
Susan has worked for APW Ltd. and its predecessor company since
1994 where she held positions in both general and financial
management. Effective October 1, 2001 Susan will transition her
responsibility for investor relations to Mike Gasick, who
recently joined APW from Rockwell International and is the
Treasurer of APW Ltd.

Joe Lower has worked for APW and its predecessor company since
early in 2000, coming to the company from Credit Suisse First
Boston where he had a close working relationship with APW.

Kash Pandya joined APW early in 1999 and has held his current
responsibilities since January 2001. Dick Sim commented, "Kash
has built a very strong team in Europe and Asia which is
committed to global operations excellence. Kash has developed and
implemented many of the operational strategies that guide APW's
actions worldwide today".

Ralph Sandle came to APW as part of the Mayville Metal Products
acquisition in February 2001 where he was President. Mayville,
under Ralph's leadership since 1997, earned a reputation in the
marketplace as a leader in quality and delivery for large indoor
and outdoor enclosures and integration services. Dick Sim
commented: "Ralph and his Mayville team bring to APW a commitment
and understanding of lean manufacturing at its best and we expect
this team to help APW rise to new levels of operational
excellence."

Dick Sim further commented, "APW is building a TEMS Supply Chain
Solution that has never existed before and today has no peers.
APW is focused on design, manufacture and integration of the
large, complex infrastructure systems supplying our customers on
a global basis. The team of people we have at APW knows what it
takes to provide `best in class' quality and delivery, everyday,
everywhere in the world. It is a personal pleasure and privilege
to be part of this team".

Last week, APW announced amendment of its credit facilities to
enable an additional $25 million in restructuring charges.

To see company's latest financial statements, click:
http://www.bankrupt.com/misc/APW_Ltd.pdf

CONTACT:  APW Ltd.
          Mike Gasick, 262/523-7631
          URL: www.apw.com



=============
B O L I V I A
=============

LAB: Workers Call For Government Intervention
---------------------------------------------
Workers of the Bolivian airline Linea Aerea de Bolivia (LAB) are
calling for the government to solve the airline's financial
crisis, urging it to use its 50-percent interest in the airline,
La Razon revealed in a report. LAB workers claimed that the
airline's debts increased significantly after Vasp of Brazil took
it over, while LAB's working capital decreased and some of the
airline's airplanes are out of service due to lack of parts.
LAB's debts are estimated at more than US$50 million, in addition
to B$77 million debts in Bolivia. So far this year, the airline
has accumulated debts of US$8 million.

Just recently, airline officials announced that flights to a
number of overseas destinations are temporarily suspended due to
its dire financial situation.



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

MOULINEX: Court Announces SEB Bid
---------------------------------
Jean-Claude Denis, the president of the commercial court handling
the case of Moulinex-Brandt, announced that the French appliance
group SEB has submitted an offer for the bankrupt French-Italian
appliances maker, AFP reported Friday. The announcement of the
bid came after a deadline for offers was pushed back until Friday
after SEB, widely believed to be the preferred buyer, said that
it had not had enough time to put an offer together.

Moulinex-Brandt, which has interests in 11 countries from China
to Brazil, registered debts of 766 million euros (US$706
million) at the end of last year, and filed for bankruptcy on
September 7, putting 21,000 jobs at risk.


SHARP: Bovespa Halts Share Transactions On Bankruptcy Request
-------------------------------------------------------------
Transactions shares of electronics maker Sharp were suspended by
the Sao Paulo stock exchange (Bovespa) amid a bankruptcy request
made by a former employee of RCT Componentes Electronics. RCT is  
a company which is controlled by Sharp, South American Business
Information reported Friday. The request was made on the basis of
a labor debt worth R$54,000 that the company allegedly owed to
the said ex-employee.

Sharp has been facing a bankruptcy process itself since March
last year when it recognized a debt worth R$645 million next to
banks and suppliers.


VARIG: Sues DAC Over Flight Reduction
-------------------------------------
Varig disclosed that it will join forces with another Brazilian
airline, TAM, initiating legal proceedings against DAC
(Departamento de Aviacao Civil), Gazeta Mercantil reported
Thursday. The seeks to reverse a recent decision by DAC to reduce
daily flights at Congonhas airport in Sao Paulo state as of
October of the current year.

Saddled with $1.3 billion of debt, Varig, recently announced
plans to lay off 10 percent of its 17,500-person work force. The
company is cutting costs because of a slump in travel following
the terrorist attacks against the U.S. Varig is taking the
reduction measures as passengers cancel or postpone travel plans
on concern over air traffic safety.

CONTACT:  VARIG Brazilian Airlines, Miami
          Jeff Kriendler, 305/866-2115



=========
C H I L E
=========

LANCHILE: Secures Insurance Coverage, Restructuring Approval
------------------------------------------------------------
In a company press release, Lan Chile S.A., ("Lan Chile" or "the
Company") (NYSE: LFL) announced today that it has secured the
required insurance coverage for third party damages arising from
war or terrorism.

In addition, the Chilean Antitrust Commision has approved
LanChile's plans to continue its corporate restructuring plan,
which includes the launch of LanExpress, a new domestic brand
that will replace the Company's Ladeco brand.

Last week, global insurance companies reduced specific coverage
for terrorist acts after the attacks against the WTC and the
Pentagon. By securing new coverage, the Company has assured that
its operations will not be suspended. LanChile asked the Chilean
government to provide guarantees to enable coverage; however,
changes in market conditions allowed the Company to obtain the
required insurance level without the government's involvement.

On Wednesday, September 26, 2001, the Chilean Antitrust
Commission withdrew its temporary suspension of the Company's
corporate restructuring plan aimed at both creating separate
passenger and cargo holdings under the LanChile corporate holding
and launching a new domestic brand, LanExpress, to replace the
Company's current Ladeco brand. Over the next two months,
LanChile will launch the new brand and begin to market its
services. In addition to a new, more modern image, the LanExpress
concept will focus on providing a new "Viaje Facil" ("Easy
Travel") service aimed at friendlier ticketing and faster
boarding procedures.

To see company's latest financial statements:
http://www.bankrupt.com/misc/LanChile.pdf

CONTACT:  Lan Chile S.A., Santiago
          Alejandro de la Fuente
          Daniel Jones
          djones@lanchile.cl
          or Andres Bianchi
          abianchi@lanchile.cl
          (562) 565-2538 / 6812
          or
          i-advize Corporate Communications, Inc., New York
          Maria Barona
          mbarona@i-advize.com
          Blanca Hirani
          bhirani@i-advize.com
          646/230-1990


LANCHILE: Maintains Strong Footing Despite Recent Crisis
--------------------------------------------------------
Just like other airlines in all parts of the world, LanChile was
hit by a severe blow by the Sept. 11 terrorist attacks in the US,
but analysts believe it would be able to survive with only minor
scratches, Reuters reported Friday. The airline may resort to
layoffs and a reduced flight schedule, but according to experts,
these measures are not vital to Lan's survival.

"The company is not going to disappear if it does not
restructure, but it would facilitate things if it could," said
Barbara Angerstein, airline analyst at Celfin brokerage in
Santiago.

"Undoubtedly, what happened in the United States is having and
will continue to have a significant impact. Lan has a cushion
that allows it to face this better than the rest," said Gerardo
Rivera, an analyst with Banedwards brokerage.

Meanwhile, Lan's potential conflict with its pilots, 73 of whom
were dismissed earlier this month, still looms, and worker unrest
could spread if there are more layoffs.



=============
E C U A D O R
=============

FILANBANCO: Ecuador Delays Sale 30 Days On Depositors' Request
--------------------------------------------------------------
Heeding the request of the depositors of the failed state-run
bank Filanbanco SA, Ecuador's Finance Ministry delayed for 30-
days a planned sale of the bank's assets, Bloomberg reported
Friday. The sale, which was scheduled to start on Oct. 4, was
postponed after depositors said they needed more time to prepare
for the auction. The government has yet to specify whether it
plans to include in the sale Filanbanco's overdue loan portfolio
and $210 million in government bonds granted earlier this year to
support the bank.

The government still owes depositors of the collapsed bank $450
million. If overdue loans and $210 million in government bonds
are added to a sale of the bank's physical assets such as
buildings and vehicles, the revenue raised is expected to be
sufficient to refund all deposits.

Ecuador shut down Filanbanco, the country's largest bank with
$1.2 billion in assets, in July after its operations became
unsustainable due to growing losses from non-performing loans.
The bank, founded in 1908, was taken over by the government in
1998 to avert its collapse following a financial crisis.



===============
H O N D U R A S
===============

GEOMAQUE EXPLORATIONS: Restructuring Period Extended To 10/18
-------------------------------------------------------------
Geomaque Explorations Ltd. announced Friday that it is continuing
to work with its principal lender, Resource Capital Fund II LP of
Denver, Colorado ("RCF"), on the restructuring of its credit and
security arrangements with RCF under the agreement dated June 9,
2000 (the "Credit Agreement"). The company has reached agreement
with RCF to extend the time to finalize the terms of this
restructuring to October 18, 2001. In the meantime, RCF has
deferred all payments required under the Credit Agreement.

The Company's financial advisor, Haywood Securities Inc., is
assisting with this restructuring as well as examining all other
alternatives to further enhance shareholder value.

Geomaque Explorations Ltd. is an international mining company
that is producing gold from its Vueltas del Rio Mine in Honduras
and San Francisco Mine in Mexico, and exploring for precious
metals in the Americas.

To see company's latest financial statements:
http://www.bankrupt.com/misc/Geomaque_Explorations.pdf

CONTACT:  John Paterson, President and Chief Executive Officer,
          (416) 956-7470



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

AEROMEXICO: Agrees To 11.05% Salary Increase To Prevent Strike
--------------------------------------------------------------
Despite Aeromexico's difficult financial situation following the
recent terrorist attacks in the US, the airline agreed to
increase pilots' pay by 11.05 percent averting a strike scheduled
for October, EFE related Friday. The agreement between the
company and its workers involved a pay raise of 8.37 percent and
an increase in benefits of 2.68 percent, Union Association of
Aviation Pilots (ASPA) official Jaime Luis Gonzalez explained.

"This agreement prevented more than 950 Aeromexico pilots from
going on a strike scheduled for next month," Gonzalez said.


BANCA CREMI/OBRERO/ORIENTE/UNION: IPAB To Auction Properties
------------------------------------------------------------
Mexican bank bailout agency IPAB will auction 3,688 properties
belonging to the failed banks Banca Cremi, Obrero, Oriente and
Union, according to an article released Friday in Mexico City
daily El Universal. The auction, handled by Accenture, will be
divided into two packages -- the first to include 2,591
properties, and the second to include 97. According to IPAB, the
properties to go on the auction block will include homes,
factories, land, retail store locations and offices.

In order to participate in the process, interested parties must
register and pay a fee to obtain the bidding rules, said IPAB.
Officials and employees of companies receiving financial
assistance from IPAB or are under its control cannot participate
in the auction. Interested parties will have until November 13 to
apply to receive the bidding rules.


BANCA QUADRUM: Heading For Liquidation
--------------------------------------
Financial authorities disclosed that the estimated damage of
Banca Quadrum has already reached over 800 million pesos.
Speculation is mounting that the bank is likely to be liquidated
rather than an attempting an expensive reorganization, Mexico
City daily El Universal reported Friday. Information provided by
the National Banking and Exchange Commission (CNBV) and bank and
bank bailout agency IPAB revealed that the bank reported capital
of 250 million pesos, against which creditors will try to recover
debts.

The CNBV intervened Quadrum in August after uncovering serious
problems during routine audits. At this piont, the CNBV must
allow time for shareholders to attempt to refinance the bank.




BANCA QUADRUM: Company Profile
------------------------------
NAME:  Banca Quadrum S.A.
       Torre Quadrum
       Blvd. Manuel Avila Camacho 76
       Mexico, D.F., Mexico

EMAIL:  erodrigu@quadrum.com.mx

TELEPHONE:  (212) 815-4372

FAX:  (212) 571-3050

WEBSITE:  http://www.quadrum.com.mx/

EMPLOYEES: 263 (last reported count)

TYPE OF BUSINESS:  Banca Quadrum, S.A. is primarily engaged in
                   the business of providing financing and
                   credit-related services and accepting
                   deposits. It also engages, to a limited
                   extent, in other activities utilizing its
                   expertise, such as trusts and repossessed
                   assets. The Company currently owns
                   approximately 99% of Arrendadora Financiera
                   Quadrum S.A. de C.V. and Factor Quadrum de
                   Mexico, S.A. de C.V.

SIC:  Foreign Bank & Branches & Agencies - 6081

TRIGGER EVENT:  The National Banking and Exchange Commission
                (CNBV) intervened in Banca Quadrum de Mexico and
                its subsidiaries in August of this year after
                uncovering serious problems during routine
                audits. According to the CNBV, Quadrum failed to
                report any non-performing assets, had no loan-
                loss provisions and its income statement did not
                fully report losses.

CHAIRMAN: John Detmold

ACTING CEO: Ignacio Nunez


CORPORACION GEO: Sells P$135M 5-Yr. Bonds To Make Debt Payment
--------------------------------------------------------------
Mexico's largest homebuilder Corporacion Geo SA managed to sell
135 million pesos ($14.2 million) in five-year bonds in order to
help pay $50 million in euro-debt coming due in 2002, Bloomberg
reported Friday. The bonds, which mature in March 2006, were sold
to yield 300 basis points above the 28-day inter-bank lending
rate, which today rose to 11.80 percent from 11.55 percent.

"Fortunately, we have taken advantage of a window of opportunity
to obtain the resources we need to assure the payment of our
Eurobond," according to company chairman Luis Orvananos,
referring to the notes that mature in May 2002.

Geo sold the bonds at the same yield as a 300 million-peso bond
with a four-year maturity it sold in August, on the expectation
that the government may boost spending on housing to help fill a
4.4 million-home shortage in Mexico.

Geo's sales depend on government-subsidized mortgages for low-
and middle-income families.


CORPORACION GEO: Forms Strategic Alliance With Autofin
------------------------------------------------------
Corporacion GEO has signed a strategic alliance with Autofin to
promote housing developments on residences costing between
470,000 pesos and 1 million pesos, Mexican financial daily El
Economista said in a report. Accordingly, GEO will benefit from
Autofin's 4,500-strong sales force. The company predicts its
profitability will grow slightly by moving into more expensive
housing developments from 'social interest' specialization.
Autofin and GEO will split investment equally between themselves
in this alliance in an area in which only certain Sofoles and
banks offer credit. GEO will invest 350 million pesos in
construction of high social interest and middle-class housing as
a result.


MCMS INC.: Court Grants Financing Access; November Assets Sale
--------------------------------------------------------------
The U.S. Bankruptcy Court in Delaware granted Electronics maker
MCMS, Inc. approval last Tuesday to access financing to pay for
the company's business operations, according to an article
released Wednesday in Idaho Statesman. The ruling will allow the
company to pay its employees and honor all employee benefit
programs during bankruptcy proceedings, as well as purchase
supplies and fund daily operations.

On Sept. 18, MCMS filed for Chapter 11 bankruptcy and announced
it would sell its operations in Mexico, Asia and the U.S. to the
Massachusetts-based Manufacturers' Services Limited (MSL) for
$43.5 million. The sale price will only satisfy part of the
company's estimated $250 million in debt. The sale is subject to
approval by the bankruptcy court. Through the bankruptcy process,
other potential bids could be made for the company. If approved,
the sale would close in November.

MCMS reported severe financial difficulties to the Securities and
Exchange Commission in July, and said it was exploring a
sale combined with a restructuring of debt as one alternative.
The company has suffered continual losses since 1998 and has
reduced its worldwide workforce by more than 1,500 employees.

CONTACT: MSL
         Stephen Schultz
         (978) 371-5412
         stephen.schultz@msl.com

         MCMS, Inc.           
         Johnna Freeman, 208/898-2600
         jfreeman@mcms.com




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
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