/raid1/www/Hosts/bankrupt/TCRLA_Public/011203.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

            Monday, December 3, 2001, Vol. 2, Issue 235

                           Headlines



A R G E N T I N A

CAP: Files For Bankruptcy; Unable To Settle 9M-Peso Debt
IMPSAT: Reaches Payment Agreement With Lenders
IMPSAT: Negotiates Acquisition Of Colombian Company's Assets
SIDERAR: Shares Fall On Sidor's Restructuring Announcement


B R A Z I L

EMBRAER: Anticipates Mediocre Results For Next Year
EMBRATEL: Sees Benefits In Rules For 2002 Phone Competition
EMBRATEL: To Reduce International Call Tariffs Starting Mid-Dec
TRANSBRASIL: Operator Suspends Reservation System Due To Debt
VARIG: S&P Places RG Receivables Transaction on Watch Negative


C H I L E

EDELNOR: Sees Light Despite Glum Sector Outlook
WACKENHUT CHILE: Creditors Agree To A Delay In Interest Payments


C O L O M B I A

AVIANCA: Gets Capital Injection From Valores Bavaria
VALORES BAVARIA: Montoya Leaves Presidency After Spin-off


M E X I C O

AEROMEXICO/MEXICANA: Travel Agents Prefer Smaller Airlines
AHMSA/HYLSAMEX: Convinced U.S. Restrictions Will Exempt Mexico
CONVERSE: Closing Mexico Plant As Part Of Bankruptcy Proceeding
GRUPO MEXICO: Fitch Says Grupo Minero Mexico Likely To Survive
LUZ Y FUERZA: Taking Actions To Ensure Payment Of Receivables

MEXLUB: Not Close To Bankruptcy, Chairman Says
STARMEDIA NETWORK: Another Class Action Suit Announced
TRI-NATIONAL: Announces Ground Breaking At Vinas de Bajamar


     - - - - - - - - - - -


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

CAP: Files For Bankruptcy; Unable To Settle 9M-Peso Debt
--------------------------------------------------------
CAP (Catedral Alta Patagonia), which manages the winter resort &
skiing facility of Bariloche, has applied for bankruptcy
protection from creditors, South American Business Information
reveals.

The Company reportedly filed for bankruptcy because it doesn't
have the resources to pay a 9-million-peso debt owed to the banks
Scotia, Rio, Valores, and Banca Nazional del Lavoro.


IMPSAT: Reaches Payment Agreement With Lenders
----------------------------------------------
Argentina's Impsat Fiber Networks Inc. struck a deal with Nortel
Networks and Lucent Technologies Inc. to delay payments totaling
$35.4 million, reports Reuters.

In a filing made with the U.S. Securities and Exchange
Commission, Impsat stated that telecommunications equipment
makers Nortel and Lucent agreed to, "refrain from enforcing and
waived their respective rights to receive principal and interest
payments."

The agreement, which took effect last Monday, expires Jan. 11,
2002.

As of Nov. 24, about $35.4 million of principal and interest were
due to Canada's Nortel and U.S. firm Lucent under existing
financing agreements, the company said in the SEC filing.

Impsat is continuing to negotiate with representatives of senior
note holders and creditors in an effort to resolve its financial
difficulties.

To see company's latest financial statement:
http://www.bankrupt.com/misc/Impsat.doc


IMPSAT: Negotiates Acquisition Of Colombian Company's Assets
------------------------------------------------------------
Impsat Fiber Networks, which is owned by the Argentinean
businessman Enrique Pescarmona, said it is negotiating with
Americatel of Colombia to acquire its assets, says Buenos Aires
Economico. However, the Company didn't say when it expects the
transaction to be concluded.

Americatel is the largest broadband services company in Colombia,
currently controlling 12 percent of the country's data
transmission and added value services market. Impsat, on the
other hand, has a 35 percent market share.

A deal between the two would create the largest player by far in
the country, with combined revenues of about $60 million.


SIDERAR: Shares Fall On Sidor's Restructuring Announcement
----------------------------------------------------------
Argentine steel group Siderar SA's stock price dropped 6.1
percent to 75 centavos after its partly owned Venezuelan
steelmaker Siderurgica del Orinoco (Sidor) announced it would
begin talks to restructure $1.4 billion in bank loans, reports
Bloomberg.

Siderar posted a net loss of 15.8 million pesos in the first
quarter to Sept. 30, compared to a profit of 11.6 million pesos a
year earlier. Domestic sales were down 21 percent to 201,000
tonnes, one of the lowest levels in the company's history.

Meanwhile, the group's board of directors has approved a series
of measures to link the Company's operations with those of the
global steel mill alliance DST.

Both DST and Siderar are owned by global industrial conglomerate
Techint.

The Company's objective is to slash operational costs and to
maximize the benefits of exports through a joint operation with
other DST members in light of plummeting international steel
prices.

The decision will see Siderar take a 25-percent stake in DST's
steel purchasing agency Lomon for $55,000 and a further 25-
percent stake in Information Systems & Technology (IST) for
$13,000.

The contract with the group's commercial agency Techint
Engineering will be renegotiated, to ensure that Siderar's reach
is extended worldwide, except the Venezuelan market. A cost
sharing agreement will be also be negotiated with Siderca and
other DST linked companies.



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

EMBRAER: Anticipates Mediocre Results For Next Year
---------------------------------------------------
Mauricio Botelho, chairman of Empresa Brasileira de Aeronautica
SA, expressed confidence it won't be posting losses next year,
but admitted that growth will still be out of reach, says AFX-
Europe.

The Company has already taken measures in order to project what
level of revenues will come in next year. It has renegotiated
terms with suppliers, cut operating costs and fired 1,800
employees.

Also expected to bring in more revenues next year is the increase
in the sales of defense aircraft. According to Botelho, sales of
small and average aircraft are expected to grow as Embraer offers
the most competitive prices in the market.

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

CONTACT:  Investor Relations Department
          Phone: 55-12-3945-1216
          e-mail: mercapit@embraer.com.br


EMBRATEL: Sees Benefits In Rules For 2002 Phone Competition
-----------------------------------------------------------
Brazilian long-distance Embratel, which is preparing to go local,
looks likely to benefit from the rules recently released by the
country's telecommunications regulator Anatel, reports Reuters.

Anatel released Thursday new rules that will govern Brazil's
telephone market in a new era of freer competition from 2002,
backtracking on stricter regulations that operators had argued
would make it too costly for them to expand.

Anatel, responding to companies' pleas, reducing the number of
cities that operators must connect to their network if they
choose to start competing outside their concession area or offer
new services.

"Our objective is to create incentives to develop our local
phone market," Anatel President Renato Guerreiro told reporters.

Under the new rules, Embratel will be able to offer local phone
services in any region or city of its choice without being
subject to any coverage restrictions. The original rules would
have forced the operator to offer local services in the entire
concession area of existing local operators.

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

CONTACT:  Embratel Participacoes S.A.
          Investor Relations
          Silvia M.R. Pereira, (55 21) 2519-9662
          fax: (55 21) 2519-6388
          invest@embratel.com.br
          or
          Press Relations
          Wallace Borges Grecco, (55 21) 2519-7282
          fax: (55 21) 2519-8010
          cmsocial@embratel.net.br


EMBRATEL: To Reduce International Call Tariffs Starting Mid-Dec
---------------------------------------------------------------
Embratel announced a plan to reduce international call tariffs by
up to 45 percent on 17 December, a move seen by Intelig, its
counterpart, as a response to the price cuts it made at the
beginning of the month, relates O Globo.

Intelig claimed it has reduced international tariffs by 60
percent since going into operation. However, Embratel's
competitor has ruled out a further cut in international tariffs
in the short term.

Embratel's tariffs for calls to the US and Canada will fall by
22.22 percent, to R$0.7 a minute, while those for calls to the
Middle East will be reduced by 45 percent, to R$0.99 a minute.

Meanwhile, the Company has also announced a 10 percent reduction
in tariffs for calls between states, which are part of its
concession area as part of its Sempre 21 plan. These tariffs will
be identical to Intelig's.


TRANSBRASIL: Operator Suspends Reservation System Due To Debt
-------------------------------------------------------------
Brazilian airline Transbrasil has been without a reservation
system since Sunday, last week, according to a report by O Globo.

Sita suspended the system on a $1-million debt owed to it by
Transbrasil. According to Flavio de Carvalho, vice-chairman of
Transbrasil, the airline is already negotiating a solution for
its liabilities with Sita.


VARIG: S&P Places RG Receivables Transaction on Watch Negative
--------------------------------------------------------------
Standard & Poor's placed Thursday its single-'B'-minus rating on
RG Receivables Co. Ltd.'s $100 million 9.6% notes on CreditWatch
with negative implications.

The RG Receivables' transaction was taken off CreditWatch on Nov.
15, 2001, as a result of a reduction in the transaction rating at
the time to single-'B'-minus from single-'B'-plus. Since that
rating action, however, investors and the ultimate issuer of the
rated notes, Viacao Aerea Rio-Grandense S.A. (Varig), have agreed
to release amounts held in the transaction reserve account to
investors in partial repayment of the outstanding notes. Although
the partial repayment of outstanding notes leaves investors' net
exposure to the transaction unchanged, Standard & Poor's believes
that the elimination of the reserve account could potentially
increase the risk of default in the event that receivables
generation weakens significantly from its estimated current
coverage level of 2.7 times (x) quarterly debt service due.
Should receivables generation decline below 2.5x quarterly debt
service for two consecutive payment periods (or below 2x
quarterly debt service in any single payment period), an early
amortization of the notes' debt service could occur that could
place significant strain on Varig's operational liquidity. If
generation were to fall below 1x quarterly debt service for at
least one full payment period but then subsequently recovers, a
default would occur that might have been avoided had the reserve
account still been in place. Therefore, Standard & Poor's will be
monitoring the performance of the transaction closely going
forward, paying particular attention to issues such as flight
frequency, load factors, and the status of aircraft lease
negotiations, all of which can impact the level of receivables
generation.

The RG Receivables' notes are secured by the proceeds of credit
and charge card receivables generated by the sale of airline
tickets in the U.S. to Varig customers flying between Brazil and
the U.S. The transaction is structured to capture offshore U.S.
dollar-denominated payments generated from the sale of tickets on
Varig S.A. flights between Brazil and the U.S. and between the
U.S. and Tokyo, Japan.

CONTACT:  Standard & Poor's
          Kevin Kime, New York (1) 212/438-6223
          or
          Rosario Buendia, New York (1) 212/438-2410
          or
          Reginaldo Takara, Sao Paulo (55) 11-5501-8932
          or
          Philip Baggaley, CFA, New York (1) 212/438-7683



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

EDELNOR: Sees Light Despite Glum Sector Outlook
-----------------------------------------------
Chilean generator Edelnor obtained approval from the regional
environment authority Corema to blend petcoke with coal at two
thermoelectric plants in Mejillones, in the north of the country,
reports Business News Americas.

A petcoke blend is predicted to bring in positive results to the
Company. According to Edelnor CEO Ricardo Falabella, the measure
would result in a decrease in costs, although the Company is yet
to calculate how much it will be able to save.

Besides lowering costs, Falabella noted, it "will give us better
options for the use of fuels at competitive prices," adding the
company will become more competitive as it confronts the natural
gas market.

Another positive factor for the use of petcoke is the greater
security it gives the northern grid (SING), as it provides
independence from natural gas imported from Argentina, Falabella
said.

Edelnor, whose debts currently stand at US$342 million, is
expected to face a difficult financial situation in December when
it will have to pay US$4.7 million to bond holders. The Company
racked up US$63 million losses in the January - September 2001
period.

Because Edelnor cannot meet financial commitments, the local
market expects it to declare bankruptcy, which would clear the
way for the sale of its assets.

To see company's financial statement:
http://www.bankrupt.com/misc/Edelnor.pdf

CONTACT:  Jason Cuevas of EDELNOR, +1-678-579-6017


WACKENHUT CHILE: Creditors Agree To A Delay In Interest Payments
----------------------------------------------------------------
Security company Wackenhut Chile sealed an agreement to repay its
US$10 million banking debts, reports South American Business
Information.

Under the agreement, the Company can delay for 90 days its
interest payments, while the principal part of the debt can be
delayed 180 days.

Earlier this year, the company had a US$42-million-debt, but the
Company was able to pay 70 percent of it off in August this year
with the support of its parent company in the US.

CONTACT:  Patrick Cannan, Director,
          Corporate Relations of Wackenhut Corporation,
          +1-561-691-6643, or pcannan@wackenhut.com



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

AVIANCA: Gets Capital Injection From Valores Bavaria
----------------------------------------------------
The Colombian government's Securities Superintendency revealed
that the board of conglomerate Valores Bavaria decided to inject
482 billion pesos ($209 million) into the loss-making airline
Avianca, reports Reuters.

According to the superintendency, the board authorized an
injection of fresh capital of up to 350 billion pesos to cover
pension liabilities, together with the capitalization of loans
already taken out by Avianca for up to 132 billion pesos.

As a result of the capital injection, Avianca's assets, which
currently total negative $216 million, will turn positive by
year's end following the transaction.

Valores Bavaria, which is controlled by Colombian businessman
Julio Mario Santo Domingo, will pump in cash partly by buying
Avianca shares. Avianca's shareholders on Wednesday approved a
plan to issue one trillion shares at a date and market price
still to be determined.


VALORES BAVARIA: Montoya Leaves Presidency After Spin-off
---------------------------------------------------------
Leonor Montoya resigned as president of Valores Bavaria. Montoya
originally took over the position after former President Andres
Obregon left his post last year in November, says Bloomberg.

Analysts said the Santo Domingo family, majority shareholder in
Valores, picked Montoya to help complete its spin off from
Bavaria, Colombia's biggest brewer.

"She had a task -- it was to stabilize Valor's' finances while
separating the company from brewer Bavaria, and that task is
over," said Alejandro Guerra, a trader with Multivalores SA.

In a statement, the Company said Montoya, "helped clean up and
make Valores more independent" from brewer Bavaria, its former
parent company.

Valores said it plans to name a replacement for Montoya in
January, adding that the next president would have expertise in
investment banking and would seek to sell unprofitable holdings
and attract foreign investment.



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

AEROMEXICO/MEXICANA: Travel Agents Prefer Smaller Airlines
-----------------------------------------------------------
Fernando Soler, president of the National Association of Travel
Agencies (ANAV), revealed that Mexican travel agents have begun
to favor the nation's smaller airlines over the leading airlines
Aeromexico and Mexicana, reports Mexico City daily Reforma.

ANAV, distributor of 80 percent of tourism products in Mexico, is
embarking on such a move as Aeromexico and Mexicana are beginning
to pay lower commission to travel agents, Soler explained.

"We give preference to airlines like Lineas Aereas Azteca and
Aviasca, who pay us 10-percent commissions, and with Allegro,
which works above that percentage," Soler said

In their drive to see a healthy tourist industry for the country,
the members of ANAV are urging for an immediate sell-off of
Aeromexico and Mexicana, grouped under holding company Cintra.


AHMSA/HYLSAMEX: Convinced U.S. Restrictions Will Exempt Mexico
--------------------------------------------------------------
U.S. President George W. Bush is to decide December 7 whether to
exclude Mexico from a list of countries to be restricted from the
U.S. market, reports Mexico City daily Reforma.

However, Mexican steel producers AHMSA and Hylsamex do not
believe that the United States will apply restrictions against
Mexican steel imports.

Mexico's steel industry is already suffering the effects of
"dumping" from Eastern European countries. External problems are
compounded by internal structural problems, including a lack of
financing and difficulties with the supply and cost of basic
materials such as gas and electricity.

Hylsamex last week said it is close to finalizing a program that
will restructure its multi-billion-dollar debts. The program will
likely involve Alfa selling part or all of its share in the
subsidiary, which racked up US$2.68 billion in debts at the end
of the third quarter.

Ahmsa, on the other hand, is struggling to have the suspension of
its debt payments lifted. December 1 was the deadline for the
submission of its restructuring plan.


CONVERSE: Closing Mexico Plant As Part Of Bankruptcy Proceeding
---------------------------------------------------------------
The 93-year-old maker of the legendary Chuck Taylor sneakers,
Converse, filed for Chapter 11 Bankruptcy Protection, reveals The
Boston Globe.

The filing was blamed on stiff competition, mainly from rival
shoe-maker Nike.

Converse has already drawn a restructuring plan, which includes
selling its Massachusetts headquarters and transferring
production to Asia. The Company will be closing its plants in
Mission, Texas, Lumberton, NC and Reynosa, Mexico resulting to a
loss of 1,000 jobs.


GRUPO MEXICO: Fitch Says Grupo Minero Mexico Likely To Survive
--------------------------------------------------------------
Fitch believes that the long-term credit fundamentals of Grupo
Minero Mexico (GMM) remain intact despite several recent events
and announcements, which have increased investors' concerns about
the liquidity of the company. While the confluence of these
events and expectations for an economic downturn have exacerbated
the uncertainty, Fitch expects that GMM, through its parent,
Grupo Mexico, and its shareholder, should have sufficient
financial flexibility and resources available to improve its
short-term liquidity position and resolve the outstanding issues
with creditors. GMM's copper mining assets, competitive cost
structure and long-term business fundamentals should allow the
company to produce reasonably healthy cash flows at more normal
copper prices versus today's cyclically depressed prices.

GMM's long-term credit ratings incorporate the cyclical nature of
the copper industry, which is currently in the trough of the
cycle. Since July 2001, copper prices have averaged near $0.65
per pound but recently rebounded to approximately $0.70 per
pound. Due to the sluggish global economic outlook for next year,
copper prices are expected to remain in the low $0.70 per pound
range. In addition, GMM is expected to resolve the current
operational issues at its Cananea facility. Given this scenario,
GMM's long- term credit fundamentals remain consistent with the
rating category.

Grupo Mexico's likely source of liquidity comes from its 74%
ownership in Grupo Ferroviario Mexicano, S.A. de C.V. (GFM),
which operates Mexico's largest railway system. This profitable
and low-leveraged subsidiary generated approximately 25% of Grupo
Mexico's consolidated EBITDA in 2000 and has become an important
source of cash flow for Grupo Mexico from outside the mining
industry. Grupo Mexico has the ability to use this asset as a
potential source of liquidity; Grupo Mexico could use GFM to
obtain a sizable credit/liquidity facility or monetize all or
part of its investment in GFM.

It is important to note that a key asset of Grupo Mexico, through
indirect subsidiary Asarco, Inc., is a 54%-ownership stake in
Southern Peru Copper Corporation (SPCC), one of the world's
largest, low-cost private sector copper producers, which is
located in Peru. SPCC currently has more than $400 million of
cash available due to a draw down on a credit facility. This cash
or any funds borrowed by SPCC in the future are not expected to
be directed toward any of the Grupo Mexico companies facing
liquidity needs. Such funds are to be used for SPCC's
modernization and expansion plans. In addition, any proposal to
make an intercompany loan from SPCC to Grupo Mexico or its
subsidiary companies, through Asarco, would most likely not
receive the approval of minority shareholders. The use of SPCC's
financial resources to support GMM or Asarco would pressure the
stand-alone credit quality of SPCC and its `BBB-' secured export
note (SEN) rating.

CONTACT:  Fitch, Chicago
          Anita Saha, 312/368-3179
          Joe Bormann, 312/368-3349


LUZ Y FUERZA: Taking Actions To Ensure Payment Of Receivables
-------------------------------------------------------------
Luz y Fuerza del Centro (LFC) managed to lessen its portfolio of
overdue debt from Mexico's state and municipalities from 46
percent to 30 percent as it moves forward on the reduction of
pending debt, reports Mexico City daily Reforma.

LFC CEO Alfonso Caso Aguilar revealed that the state and
municipal governments are now paying off their overdue accounts
to the state-owned power utility.

The Company will continue to cut the supply of electricity to the
public lighting, traffic lights and government offices of overdue
municipalities, Aguilar said.

So far this year, LFC has not had problems meeting demand, as new
plants have begun operations to increase supply, he noted.  


MEXLUB: Not Close To Bankruptcy, Chairman Says
----------------------------------------------
Octavio Sanchez, managing director of Mexican oil and lubricants
distributor MexLub, informed that the Company is not close to
declaring bankruptcy, reports Business News Americas.

Sanchez statement came out to counter recent market speculation
that MexLub is likely to default on bank payments.

MexLub, despite cash flow problems, is capable of covering its
debts, Sanchez said, noting that the Company still has some 2.6
billion pesos worth of assets.

The Company has 1 billion pesos (US$109 million) in outstanding
debts, primarily to its chief creditor, the Banorte bank. In
addition to that, the country's anti-trust commission is
investigating it for monopolistic practices. Meanwhile, foreign
companies have asked the Mexican government for access to its
markets, according to NAFTA trade agreements with the US and
Canada.


STARMEDIA NETWORK: Another Class Action Suit Announced
------------------------------------------------------
A class action lawsuit was filed in the United States District
Court for the Southern District of New York on behalf of all
purchasers of StarMedia Network, Inc. (Nasdaq: STRM) securities
between April 11, 2000 and November 19, 2001, inclusive ("Class
Period"), against StarMedia, Fernando J. Espuelas (co-founder of
the Company, former Chief Executive Officer, and former Chairman
of the Board of Directors), Jack C. Chen (co-founder of the
Company, former President), and Steven J. Heller (former Chief
Financial Officer). The complaint alleges that defendants
violated Sections 10(b) and 20(a) of the Securities Exchange Act
of 1934 and Rule 10b-5, promulgated thereunder, by issuing
materially false and misleading statements during the Class
Period that had the effect of artificially inflating the market
price of the Company's securities.

The complaint charges defendants with violations of sections
10(b) and 20(a) the Securities Exchange Act of 1934 and Rule 10b-
5 promulgated thereunder. The complaint alleges that during the
Class Period, defendants issued to the investing public false and
misleading financial statements and press releases concerning the
Company's publicly reported revenues, earnings and net income.
Moreover, the Company failed to disclose material information
necessary to make its prior statements not misleading.

On November 19, 2001, StarMedia shocked the investing community
by announcing that the Company was restating its previously
reported financial results for fiscal year 2000 and the first two
quarters of fiscal 2001, due to accounting errors and improper
accounting practices at two of the Company's Mexican
subsidiaries, AdNet S.A. de C.V. and StarMedia Mexico, S.A. de
C.V. As a result of these improper accounting practices,
StarMedia's reported revenues and earnings were overstated by at
least $10 million. Additionally, the Company announced that its
Chief Financial Officer had resigned.

These disclosures contradicted much of the information provided
by defendants to the market during the Class Period concerning
its financial results. In response, Nasdaq halted trading in the
Company's shares.

Plaintiff is represented by The Law Offices of Marc S. Henzel. If
you bought the securities between April 11, 2000 and Nov. 19,
2001, you may, no later than January 22, 2002, request that the
Court appoint you as lead plaintiff. A lead plaintiff is a
representative party that acts on behalf of other class members
in directing the litigation. In order to be appointed lead
plaintiff, the Court must determine that the class member's claim
is typical of the claims of other class members, and that the
class member will adequately represent the class. Under certain
circumstances, one or more class members may together serve as
"lead plaintiff." Your ability to share in any recovery is not,
however, affected by the decision whether or not to serve as a
lead plaintiff.

CONTACT:  Marc S. Henzel, Esq.
          The Law Offices of Marc S. Henzel,
          +1-888-643-6735 or +1-610-660-8000
          fax: +1-610-660-8080 or
          Mhenzel182@aol.com


TRI-NATIONAL: Announces Ground Breaking At Vinas de Bajamar
-----------------------------------------------------------
In a company press release, Tri-National Development Corp.
(OTCBB:TNAV) announced Thursday that it has begun the
engineering, grading and staking of residential lots at Phase A
of its Vinas de Bajamar project.

Vinas de Bajamar is a 1,250-acre master planned golf and 1,400
home site residential development located approximately 50 miles
south of San Diego on the Pacific Ocean in Northern Baja
California, Mexico. Tri-National is currently pre-selling lots in
the development as an integral part of its reorganization plan.

The company is working closely on the project with Grupo Valcas
under a pre-existing relationship. Valcas has served as the
development manager and coordinator for the project, as well as
handling production supervision of all subcontractors, execution
and implementation of the master plan, and county, state and
federal permitting.

Grupo Valcas is a group of companies established in Mexico City
in the early '60s to pursue real estate development. They bring
experience in land planning, development, construction and
marketing of tens of thousands of home sites in various parts of
Mexico. Through a wholly owned subsidiary, they were also
responsible for the planning, development and construction of the
Bajamar Ocean Front Hotel and Golf Resort, also known as "The
Pebble Beach South of the Border." The resort includes a 27-hole
ocean view golf course and Club House, as well as extensive
commercial and residential properties, and is located directly
across the toll road from Tri-National's Vinas property.

Michael A. Sunstein, president and CEO of Tri-National, said, "We
are pleased that we are now afforded the opportunity to focus on
the development and marketing of our Vinas de Bajamar properties
in conjunction with Valcas. They know the area and the market and
we believe their experience will be of great assistance in the
overall execution of our plans for Vinas de Bajamar."

Lot sales in the Vinas project will provide the company with
income to address operating expenses and liabilities, under the
reorganization plan and the supervision of the court. The company
will continue to direct all of its efforts to this process to
insure that its legitimate creditors are paid 100 percent and
that shareholder value is preserved on the road back to
profitability.

Tri-National Development Corp. is an international real estate
development, sales and management company focused on providing
affordable housing in the Baja region of Mexico and the
Southwestern U.S.

In October, the Company filed a voluntary Chapter 11 bankruptcy
petition in the San Diego Bankruptcy Court because it didn't have
cash to satisfy the claims of its creditors.

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

CONTACT:  Tri-National Development Corp.
          Jason Sunstein, 619/718-6370, Fax 619/718-6377
          jason@tri-national.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
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
be reliable, but is not guaranteed.

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 240/629-3300.


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