TCRLA_Public/011220.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, December 20, 2001, Vol. 2, Issue 248

                           Headlines



A R G E N T I N A

ACINDAR: Shares Nose-Dive On Mounting Recession Concerns
IMPSAT: Fails To Make Scheduled Bond Interest Payment
GRUPO GALICIA: IMF Currency Comments Weigh On Shares


B R A Z I L

ACESITA: Ex-Finance Director To Become New Chairman In January
CESP/LIGHT: Shares Up On Strengthening Currency
EMBRAER: Gets A Boost With New Rolls-Royce Engine Deal
TRANSBRASIL: Persuades Varig To Resume Passenger Services
VARIG: Seals Leasing Deal With Boeing To Cut Debts


C H I L E

EDELNOR: Mirant Gets Three Takeover Offers For Its 82% Share


H O N D U R A S

GEOMAQUE EXPLORATIONS: Completes Debt Restructuring


M E X I C O

GRUPO IMSA: Obtains Syndicated Loan of US$380 Million
HYLSA SA: S&P Lowers Debt Rating From CCC- To Selective Default
HYLSAMEX: Shares Fall On Expectations Creditors May Shun Proposal
SANLUIS: Shares Climb On Speculation Of Agreement With Creditors
STARMEDIA NETWORK: Berger & Montague Files Securities Lawsuit
STEWART ENTERPRISES: Q401 Net Down 31%, Selling Mexican Holdings


P A R A G U A Y

ANTELCO: Tariff, Subscription Hike Assures Buyer US$100M Yearly
ANTELCO: Group Raps Two-Year Market Monopoly Given To New Owner


V E N E Z U E L A

SIDOR: Defaults On $31.3M Interest Payment for Bank Loans


     - - - - - - - - - -


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

ACINDAR: Shares Nose-Dive On Mounting Recession Concerns
--------------------------------------------------------
Speculation among traders that Acindar may eventually succumb to
Argentina's long recession sent the Argentine steelmaker's shares
plummeting more than 24 percent on Tuesday.

"There are many concerns that, if Argentina's recession deepens
as forecast next year, and world steel prices being the way they
are, Acindar may not last more than another couple of months,"
said Ruben Pasquali, a trader for Mayoral brokerage.

Acindar shares on the Buenos Aires Stock Exchange were down 24
percent to a new 12-month low of 11.5 cents amid a flat overall
session. The stock is down over 90 percent this year as the
Company posted deepening net losses.

Chief Executive Arturo Acevedo last month said that the Company
had brought its losses under control through heavy cost cutting
and increased exports.

Argentina is in the fourth year of a deep recession that has
particularly hammered the construction industry, upon which
Acindar is very dependent for revenues.


IMPSAT: Fails To Make Scheduled Bond Interest Payment
-----------------------------------------------------
In an official statement, Impsat Fiber Networks, Inc. (NASDAQ:
IMPT) ("Impsat" or "the Company") announced that it did not make
its US$13.9 million interest payment due on December 17, 2001 on
its 12 3/8 % Senior Notes due 2008.

The decision to not make this payment is part of the cash
preservation initiatives within the financial restructuring
process Impsat undertook months ago. In its latest Form 10-Q
filing with the Securities & Exchange Commission (SEC), the
Company announced it was in discussions with certain creditors to
find alternatives to restructure its balance sheet.

As stated in previous communications, the Company has retained
the investment banking firm Houlihan Lokey Howard & Zukin Capital
to assist it in connection with its restructuring plan. Questions
concerning the restructuring process should be directed to John
McKenna or Lily Chu of Houlihan Lokey Howard & Zukin Capital at
212.497.4100.

Impsat Fiber Networks, Inc. is a leading provider of fully
integrated broadband data, Internet and voice telecommunications
services in Latin America. Impsat has recently launched an
extensive pan-Latin American high capacity broadband network in
Brazil, Argentina, Chile and Colombia using advanced
technologies, including IP/ATM switching, DWDM, and non-zero
dispersion fiber optics. The Company has also deployed fourteen
facilities to provide hosting services Impsat currently provides
services to over 3,000 national and multinational companies,
government entities and wholesale services to carriers, ISPs and
other service providers throughout the region. The Company has
local operations in Argentina, Colombia, Venezuela, Ecuador,
Mexico, Brazil, the United States, Chile and Peru. Visit us at
www.impsat.com.

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

CONTACT:  Impsat Fiber Networks, Inc.
          Guillermo Jofre
          Gonzalo Alende Serra
          54.11.5170.3700
          www.impsat.com
          or
          Citigate Dewe Rogerson
          John McInerney
          212/688-6840


GRUPO GALICIA: IMF Currency Comments Weigh On Shares
----------------------------------------------------
Shares of Grupo Financiero Galicia SA, the holding company for
Argentina's third-largest bank, fell 2.33 percent to 42
centavos with $3 million shares traded, according to a report by
Bloomberg.

Galicia was hurt by comments from the IMF that Argentina may be
forced to abandon its currency peg.

A devaluation of the peso would hurt the bank because most of its
loans are denominated in U.S. dollars, increasing chances that
customers would default on their borrowings.



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

ACESITA: Ex-Finance Director To Become New Chairman In January
--------------------------------------------------------------
Luiz Anibal de Lima Fernandes will be the new chairman of
Acesita, the stainless steel manufacturer controlled by the
Usinor group, beginning January.

De Lima Fernandes was the Company's former finance director.

Acesita was acquired by Usinor in 1998. Since then, the Company
has undergone a process of technological, operational and
financial restructuring. The process appears to have produced
better results to the company.

Although losses from January to September this year amounted to
R$191 million compared to only R$50.5 million for the same period
last year, the Company said its earnings in the third quarter
rose by 22.9 percent to R$383.7 million.

Acesita has so far recorded R$1 billion in net earnings, slightly
over the R$997 million it had last year.

Meanwhile, the Company is currently implementing a US$100-million
plan to increase its capacity to 500,000 m tons per year.


CESP/LIGHT: Shares Up On Strengthening Currency
-------------------------------------------------
Shares of Brazilian electricity companies Cia. Energetica de Sao
Paulo (CESP) and Light Servicos de Eletricidade SA soared as a
strengthening currency decreases financing costs for companies
with large debt levels, relates Bloomberg.

The Brazilian real jumped 2.2 percent to 2.3050 reais per U.S.
dollar, its strongest level since June 28.

Cesp, Brazil's third-largest electricity generator, leaped 9.8
percent to 17.55 reais. About 80 percent of Cesp's $4 billion in
debt is denominated in dollars.

Power distributor Light, on the other hand, gained 4.2 percent to
118.80 reais. About 87 percent of Light's $2.8 billion in debt is
denominated in dollars.

"The reais strengthening today helps companies with large debts -
- and Cesp has a lot of debt," said David Hurd, Latin America
electricity analyst with Deutsche Banc Alex. Brown in Baltimore.



EMBRAER: Gets A Boost With New Rolls-Royce Engine Deal
------------------------------------------------------
British aero-engine maker Rolls-Royce Plc inked a new contract
for its AE 3007 engines with Brazilian aircraft manufacturer
Embraer SA, reports Reuters.

According to Rolls-Royce, the contract is worth a potential $500
million. Under the terms of the contract, Embraer will sell 25 of
its twin-jet corporate aircraft to Chicago charter airline
Indigo.

Indigo has also taken options on an additional 50 of the jets,
which are powered by AE 3007 engines.

The deal provides a good boost to Embraer, which have had few
opportunities to book new sales following the September attacks
on the United States, which led to airlines around the world
shedding capacity.


TRANSBRASIL: Persuades Varig To Resume Passenger Services
---------------------------------------------------------
Brazilian airline Transbrasil eventually managed to convince
Varig and Rio Sul to resume boarding of its passengers, reports
Jornal do Commercio.

Varig and Rio Sul had previously cancelled the service rendered
to Transbrasil, which since early December, had suspended its
flights due to the lack of money to pay for the fuel.

The airline owes more than R$11 million to BR Distribuidora, and
it has asked for a loan worth R$15 million to purchase fuel.


VARIG: Seals Leasing Deal With Boeing To Cut Debts
--------------------------------------------------
Brazil's flagship airline Varig signed a leasing deal with
aerospace firm Boeing Co. that will allow it to cut its total
debt by a third, says Reuters.

Varig, which hasn't made a profit since 1997, will sell two
McDonnell Douglas MD-11s and four Boeing 737-300s to Boeing
Capital Corp., which will lease them back to the carrier.

Subsequently, Varig will cut its debt to US$830 million from
US$1.2 billion, said Manuel Guedes, Varig's director of investor
relations.

"Debt reduction of this size changes completely our financial
profile," said Ozires Silva, Varig's president. "These days most
companies lease rather than own their own aircraft."

The jets were bought originally in an agreement financed by
Wilmington Trust Co. of the United States. Boeing will have the
option in the future to acquire a stake in Varig. However,
according to Daniel da Silva, Boeing's vice-president for Latin
American sales, the option isn't being studied at the moment.

"I think it's sensational," said Robert Booth, of Miami-based
consultant Aviation Management Services. "The interest payment on
their debt has been killing them and this certainly helps them to
tidy up their balance sheet."

Varig plans to keep trimming its debt to reach between $300
million and $400 million next year through other "creative
solutions" like the deal with Boeing, said Guedes.

"The sale of stakes in Varig or one of the 10 subsidiaries in the
group is also among shareholders' plans, although nothing is
proceeding right now," informed Guedes.

Already burdened by rising costs, Varig was forced to announce
the cost cuts and lay off 10 percent of its 17,500-member work
force 10 days after the Sept. 11 attacks on the United States
thrust the world aviation industry into crisis.



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

EDELNOR: Mirant Gets Three Takeover Offers For Its 82% Share
-----------------------------------------------------------
U.S. energy marketer Mirant Corp. now has three takeover offers
for its 82.3 percent stake in the debt-ridden Chilean power
generator Edelnor.

According to a report by Reuters, Chilean firm Del Sol Mercados
Futuros informed Chile's securities regulator that it offered to
pay $4.5 million for the purchase of Mirant's stake in Edelnor.

The bid matches the revised offer made by Chile's Inversiones y
Asesorias Titanium on Monday.

Both Titanium's and Futuros' offers exceed by $1 the offer made
on December 11 by another Chilean firm called Los Choros Power &
Gas.

Edelnor is one of the main power generators in northern Chile,
where much of the country's huge copper mining industry is
located. The 670- megawatt company has outstanding debt worth
$340 million and liquidity problems, Mirant has said.

In October, Mirant announced it was seeking buyers of Edelnor
after U.S. power giant AES Corp. and Chile's Electroandina, owned
by Tractebel and Chile's state-owned copper company Codelco,
withdrew their competing bids.



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

GEOMAQUE EXPLORATIONS: Completes Debt Restructuring
---------------------------------------------------
In an official press release, Geomaque announced that it has
reached an agreement with its principal lender, Resource Capital
Fund II L.P. of Denver, Colorado ("RCF") to complete the
restructuring of its credit and security arrangements with RCF
under its agreement dated June 9, 2000.  The key terms of the
restructuring agreement are outlined below:

Payments to RCF

*    Fixed payments totaling US$2,925,000 will be repaid
     quarterly over seven quarters commencing September 30, 2002.

*    Payments equal to 40% available net cash flow from the
     Vueltas del Rio Mine, after payment of the fixed payments to
     RCF and Sococo (as described below) will also be made on a
     quarterly basis commencing with the quarter ending September
     30, 2002. These payments continue until such time as RCF
     shall have earned an amount sufficient to realize a 40%
     internal rate of return on the net advances as at September
     30, 2001 of $2,925,000.

*    In addition, after the satisfaction of the above amounts,
     RCF shall receive a 10% Net Project Cash Flow Royalty
     Interest on the Vueltas del Rio Mine.

Payments to Sococo de Costa Rica, S.A. ("Sococo")

Sococo provides contract mining services to Geomaque Honduras'
Vueltas del Rio mine, and is currently owed $1,685,000 for
services performed prior to September 30, 2001. This amount will
be paid quarterly over the 10 quarters commencing September 30,
2002.

Additional Working Capital

As part of its restructuring the Company has raised by way of a
private placement of common shares an additional CDN$1,985,000
(equivalent to US$1,265,000) for working capital purposes as
follows:

*    RCF and other investors including two significant
     institutional shareholders (collectively the "Subscribers")
     have agreed to subscribe for common shares of the Company at
     CDN $0.05 per share for gross proceeds of CDN $1,985,000 or
     US$1,265,000. A total of 39,700,000 common shares will be
     issued to the Subscribers in a private placement
     transaction, a portion of which will be subject to
     shareholder approval. Upon approval of the TSE, Geomaque
     will immediately issue 8,385,888 common shares for gross
     proceeds of CDN $419,294. The remaining funds will be held
     in escrow and 31,314,112 commons shares will be issued and
     the funds released from escrow upon obtaining shareholder
     approval. It is expected that an extraordinary general
     meeting of shareholders to approve this private placement
     will be held early in February.

Board and Management Appointments

In conjunction with the completion of the Restructuring
Agreement, a new Board of Directors and senior management team
have been appointed.

Mr. John W. Hick will assume the role of President and CEO and
become a member of the Board. Mr. Hick has held senior management
positions with a number of mining companies and is a Director of
several publicly-listed mining companies including Cambior Inc.
and Rio Narcea Gold Mines.

Mr. Mario Caron will assume the position of Vice-President,
Operations and join the Board of Directors. Mr. Caron, a mining
engineer, was a Vice-President of PriceWaterhouseCoopers
Securities Inc. and a former President of Eden Roc Mineral Corp.

In addition, Mr. Gordon Bogden and Mr. Bruce Higson-Smith will
join the Board. Mr. Bogden is Managing Director of Beacon Group
Advisors Inc., an M&A advisory group and is a former investment
banking executive with Newcrest Capital Inc., N.M. Rothschild &
Sons Canada Limited and CIBC Wood Gundy Securities Inc. Mr.
Higson-Smith, a mining engineer, is a Vice-President of Resource
Capital Funds.

Mr. Hick stated: "With the restructuring complete and the
addition of new working capital the new Board and management
group will be able to focus on the optimization of the Vueltas
del Rio asset so that the mine can achieve its full potential and
provide value to the Geomaque shareholders".

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

For further information please contact:

John Hick
President and CEO
(416) 956-7470



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

GRUPO IMSA: Obtains Syndicated Loan of US$380 Million
-----------------------------------------------------
Grupo IMSA (BMV:IMSA) (NYSE:IMY), announced Tuesday that it has
obtained a long-term syndicated loan for US$380 million.

This transaction has allowed the Company to modify the contract
of an already-existing debt with an outstanding amount of US$231
million to obtain a lower interest rate, and to acquire new
resources of US$149 million to be used principally to refinance
short-term debt. The transaction improves Grupo IMSA's debt
profile by extending its average life without increasing total
indebtedness.

Grupo IMSA used the additional resources from this syndicated
loan to pay off debt that had been incurred to complete the
acquisition of VP Buildings in October and other short-term debt.
The reduction in interest rate will result in a significant
lowering of the Company's financial expense. The success of this
transaction reflects Grupo IMSA's good results and the efforts
over the last five quarters to strengthen the Company's financial
position.

The syndicated loan was divided into three tranches: the first
for US$120 million with a two-year maturity; the second for
US$150 million with a four-year maturity; and the third for
US$110 million with a five-year maturity.

The lead arranger of the transaction was Salomon Smith Barney --
Citibank, N.A., and the syndicate was made up of: BankBoston,
N.A., Wachovia Bank, N.A., BNP Paribas and JP Morgan Chase Bank,
as arrangers, with ten other banks as participants.

Marcelo Canales, CFO of Grupo IMSA, said, "The syndicated loan
transaction was very successful, and we even obtained a
subscription in excess of the US$380 million that we had
requested. This is a very significant achievement, especially if
we consider today's difficult global environment. It is further
proof of the confidence that our business model inspires, a model
that has traditionally allowed us to overcome economic downturns;
it also reflects the respect that we have always shown to our
creditors."

Mr. Canales added, "We have achieved two objectives with this
transaction: reducing the cost of our long-term debt and
refinancing our short-term debt, in this way, significantly
improving the Company's debt profile."

CONTACT:  Grupo IMSA, Monterrey
          Jose Luis Fornelli, 011 (52) 8153-8416
          jfornell@grupoimsa.com


HYLSA SA: S&P Lowers Debt Rating From CCC- To Selective Default
---------------------------------------------------------------
Standard & Poor's downgraded Hylsa SA's debt rating to a
selective default-rating "SD" from "CCC-," which was already nine
levels below investment grade, reports Bloomberg.

The cut in the ratings is the second time in three months
following the Company's announcement of a restructuring plan for
its bank debt.

"The downgrade is based on the Mexican steelmaker's non-payment
of scheduled interest and principal payments, announced as part
of the proposal for the restructuring of its total outstanding
bank debt," S&P said in a statement.

Those payments won't resume until a refinancing transaction is
completed, which could be at the end of February, S&P said.

Hylsa, a unit of steelmaker Hylsamex SA, is expected to continue
paying interest and principal on its $300 million bond due in
2007, $73 million of inflation-adjusted bonds maturing in 2005
and debt from Bancomext, Mexico's export-import bank.

S&P also downgraded the 2007 bond to "CCC+" from "CC." "There is
significant uncertainty as to whether Hylsa will require a
broader financial restructuring than is currently contemplated,"
S&P said.

S&P last downgraded Hylsa's debt in September.


HYLSAMEX: Shares Fall On Expectations Creditors May Shun Proposal
-----------------------------------------------------------------
Hylsamex SA shares tumble 24 centavos, or 4.3 percent, to 5.4
pesos on concern that bank creditors may reject the steel-making
subsidiary of Alfa SA's restructuring proposal, says Bloomberg.

Hylsamex presented to a steering committee of bank creditors last
week a proposal to divide $627 million of bank loans into two
packages with longer maturities and a grace period on interest
payments to allow the company to recover from slumping steel
demand and prices.


SANLUIS: Shares Climb On Speculation Of Agreement With Creditors
----------------------------------------------------------------
Shares of auto parts maker and mining company Sanluis Corporacion
SA rose 35 centavos, or 5.8 percent, to 6.4 pesos, according to a
report by Bloomberg.

The Company's shares have risen 63 percent in the last two weeks.

"It seems to point to an agreement with creditors, but there's no
evidence of such an agreement," said Francisco Suarez, an analyst
with Casa de Bolsa Banorte SA in Mexico City.

Sanluis fell into default in September and is now in talks with a
group of creditors led by J.P. Morgan Chase & Co. to postpone
debt payments on $200 million in debt to avoid a shutdown until
demand for auto parts recovers.

The Company is betting on a turnaround in the U.S. auto-parts
market. Some economists are predicting the better economic
environment could come in the first half of next year which may
help Sanluis pull out of the current slump and pay back its debt
in full.

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


STARMEDIA NETWORK: Berger & Montague Files Securities Lawsuit
-------------------------------------------------------------
The law firm of Berger & Montague, P.C., ( http://www.bm.net)filed a
class action suit on behalf of an investor against StarMedia
Network, Inc. ("StarMedia" or the "Company") (NASDAQ:STRME) and
its principal officers and directors in the United States
District Court for the Southern District of New York on behalf of
all persons or entities who purchased StarMedia stock during the
Class Period from April 11, 2000 through November 19, 2001.

The complaint charges that defendants violated Sections 10(b) and
20(a) of the Securities Exchange Act of 1934, and Rule 10b-5
promulgated thereunder, by issuing a series of material
misrepresentations to the market between April 11, 2000 and
November 19, 2001 concerning the Company's financial performance.
The complaint alleges that Starmedia reported artificially
inflated financial results in press releases and filings made
with the SEC by improperly recognizing revenue in violation of
Generally Accepted Accounting Principles ("GAAP"). Specifically,
the complaint alleges that two of the Company's primary
subsidiaries, AdNet S.A. de C.V. and StarMedia Mexico, S.A. de
C.V, had engaged in improper accounting practices which had the
effect of materially overstating StarMedia's reported revenues
and earnings by at least $10 million. On November 19, 2001, as
alleged in the complaint, Starmedia issued a press release
announcing that based on the "preliminary" results of an internal
investigation into its accounting practices, it expects to
restate its financial statements for fiscal year 2000 and the
first two quarters of 2001 and that those financial statements
should not be relied upon. The Company further reported that its
Chief Financial Officer had "resigned." Immediately following the
announcement of the restatement, the NASDAQ Stock Market halted
trading in StarMedia stock, pending the receipt of additional
information from the Company. StarMedia stock last traded at
$0.38 per share, which is 98.5% less than the Class Period high
of $25.50, reached on April 11, 2000.

If you purchased StarMedia common stock during the period from
April 11, 2000 through November 19, 2001, inclusive, you may, no
later than January 21, 2002 move to be appointed as a Lead
Plaintiff. A Lead Plaintiff is a representative party that acts
on behalf of other class members in directing the litigation. The
Private Securities Litigation Reform Act of 1995 directs Courts
to assume that the class member(s) with the "largest financial
interest" in the outcome of the case will best serve the class in
this capacity. Courts have discretion in determining which class
members(s) have the "largest financial interest," and have
appointed Lead Plaintiffs with substantial losses in both
absolute terms and as a percentage of their net worth. If you
have sustained substantial losses in StarMedia common stock
during the Class Period, please contact Berger & Montague, P.C.
at investorprotect@bm.net for a more thorough explanation of the
Lead Plaintiff selection process.

The law firm of Berger & Montague, P.C. has over 50 attorneys,
all of whom represent plaintiffs in complex litigation. The
Berger firm has extensive experience representing plaintiffs in
class action securities litigation and has played lead roles in
major cases over the past 25 years which have resulted in
recoveries of several billion dollars to investors. The firm is
currently representing investors as lead counsel in actions
against Rite Aid, Sotheby's, Waste Management, Inc., Sunbeam,
Boston Chicken and IKON Office Solutions, Inc. The standing of
Berger & Montague, P.C. in successfully conducting major
securities and antitrust litigation has been recognized by
numerous courts. For example:

"Class counsel did a remarkable job in representing the class
interests." In Re: IKON Offices Solutions Securities Litigation.
Civil Action No. 98-4286(E.D.Pa.) (partial settlement for $111
million approved May, 2000).

"...[Y]ou have acted the way lawyers at their best ought to act.
And I have had a lot of cases...in 15 years now as a judge and I
cannot recall a significant case where I felt people were better
represented than they are here ... I would say this has been the
best representation that I have seen." In Re: Waste Management,
Inc. Securities Litigation, Civil Action No. 97-C 7709 (N.D.
Ill.) (settled in 1999 for $220 million).

If you purchased StarMedia securities during the Class Period, or
have any questions concerning this notice or your rights with
respect to this matter, please contact:

Sherrie R. Savett, Esquire
Douglas M. Risen, Esquire
Kimberly A. Walker, Investor Relations Manager
Berger & Montague, P.C.
1622 Locust Street
Philadelphia, PA 19103
Phone: 888/891-2289 or 215/875-3000
Fax: 215/875-5715
Website: www.bm.net
e-mail: InvestorProtect@bm.net

CONTACT:  Berger & Montague, P.C.
          Sherrie R. Savett, Esquire
          Douglas M. Risen, Esquire
          Kimberly A. Walker, Investor Relations Manager
          888/891-2289 or 215/875-3000
          Fax: 215/875-5715
          InvestorProtect@bm.net


STEWART ENTERPRISES: Q401 Net Down 31%, Selling Mexican Holdings
----------------------------------------------------------------
Stewart Enterprises, Inc. (Nasdaq NMS:STEI) announced Tuesday its
results for the fourth quarter and fiscal year 2001. The Company
implemented the Securities and Exchange Commission's Staff
Accounting Bulletin No. 101, "Revenue Recognition in Financial
Statements" ("SAB 101") in the first quarter of fiscal year 2001,
which resulted in changes to its methods of accounting for some
of its preneed sales activities. For a detailed description of
the effects of the implementation of SAB 101, see Note 2 of the
Company's Form 10-Q for the quarter ended July 31, 2001 and Form
8-K dated March 14, 2001.

For purposes of comparability, unless stated otherwise, all 2000
results described herein are presented on a pro forma basis to
reflect the 2001 change in accounting methods as if it had been
implemented at the beginning of fiscal year 2000, and the results
for fiscal year 2001 are presented exclusive of the loss on
assets held for sale and other charges, the early extinguishment
of debt and the cumulative effect of the accounting change
relating to the adoption of SAB 101 as reported in the third
quarter of 2001.

The Company announced that earnings for the fourth quarter and
fiscal year ended October 31, 2001, were $7.3 million and $51.9
million, or $0.07 and $0.48 per share, respectively, compared to
pro forma earnings of $9.9 million and $57.4 million, or $0.09
and $0.54 per share, respectively, for the fourth quarter and
fiscal year of 2000. Including the previously announced
nonrecurring, noncash charges and the cumulative effect of the
change in accounting principles, the net loss for fiscal year
2001 was $408.7 million or $3.81 per share.

Once the Company adopted a plan for the sale of its foreign and
certain small domestic operations during the third quarter of
2001, it began segregating the operating results of these
businesses from the operations it will retain. The following
discussion and the supplemental schedules included in this press
release segregate the financial results into two categories in
order to present the Company's ongoing operating results and to
provide more comparable information for investors. The Company's
"operations to be retained" consist of those businesses it has
owned and operated for all of this fiscal year and last and which
are not for sale ("existing operations") plus those businesses
that have been acquired or opened during this fiscal year or last
("acquired/opened operations"). "Closed and held for sale
operations" consist of those that have been sold or closed during
this fiscal year or last and the businesses that are currently
being sold or offered for sale.

Total funeral revenues for the fourth quarter and fiscal year
ended October 31, 2001 were $92.3 million and $410.3 million,
respectively, compared to pro forma funeral revenues of $101.1
million and $425.6 million, respectively, for 2000. Total funeral
revenues from the Company's operations to be retained were $72.5
million compared to pro forma $69.3 million in the fourth quarter
of 2000, and through twelve months, funeral revenues from
operations to be retained were $297.3 million compared to pro
forma revenues of $289.5 million for 2000. This increase in
funeral revenue from the Company's operations to be retained is
partially due to an increase in the average revenue per funeral
call of 4.5 percent for the quarter and 1.4 percent for the year
and an increase in the number of funeral calls performed by these
businesses of 0.9 percent and 1.1 percent for the quarter and
year. The average revenue per funeral call for the Company's
existing funeral operations increased 4.8 percent for the quarter
and 1.7 percent for the year, and the number of funeral calls
performed by these operations decreased 1.2 percent for the
quarter and year-to-date. About 40 percent of the decline in the
number of events performed by our existing operations was
attributable to a decline in low-end calls that the Company
stopped performing. Excluding these low-end calls, the Company's
existing funeral homes declined less than one percent, or one to
two funerals per location. The cremation rate for the Company's
existing operations was 37.6 percent for the quarter and 37.9
percent for the year.

Total cemetery revenues for the fourth quarter and fiscal year
ended October 31, 2001 were $61.3 million and $256.7 million,
respectively, compared to pro forma cemetery revenues of $68.6
million and $287.8 million, respectively, for 2000. Total
cemetery revenues from the Company's operations to be retained
were $60.2 million compared to pro forma $66.6 million in the
fourth quarter of 2000, and for the year, cemetery revenues from
operations to be retained were $248.4 million compared to pro
forma revenues of $274.7 million for the fiscal year ended 2000.

Brian J. Marlowe, Chief Operating Officer, commented, "Prior to
September 11th, we were at about 98 percent of our expectations
with regard to domestic preneed sales, and even with all of the
emotions and changes that this event brought with it, we were
able to finish the year at about 97 percent of where we expected
to be. We are pleased with the results from our preneed sales
organization."

For the fourth quarter and fiscal year ended October 31, 2001,
the overall gross margins from the Company's operations to be
retained were 23.3 percent and 24.9 percent, respectively,
compared to pro forma 21.9 percent and 25.3 percent,
respectively, for 2000.

For the fourth quarter and fiscal year ended October 31, 2001,
the funeral margins from the Company's operations to be retained
were 24.4 percent and 24.2 percent, respectively, compared to pro
forma 23.3 percent and 27.7 percent, respectively, for 2000. The
quarter margins improved due to the above-mentioned increases in
the number of calls and average revenue and to the close
management of funeral costs.

Year-to-date margins for the current period include an increase
in costs due to the Archdiocese properties, which were not open
for a full period in the prior year, upward pressure on the
Company's funeral costs, including labor costs, and an increase
in overhead costs allocated to the funeral segment. The Company
allocates common overhead costs between its segments based on
revenue. Due to the Company's moderation in preneed cemetery
sales, the allocation has shifted a higher percentage of those
costs to the funeral segment and a corresponding lower percentage
to the cemetery segment.

For the fourth quarter and fiscal year ended October 31, 2001,
the cemetery margins from the Company's operations to be retained
were 22.0 percent and 25.7 percent, respectively, compared to pro
forma 20.5 percent and 22.8 percent, respectively, for 2000. The
quarter and year-to-date margins for the current period were
impacted by a decline in costs due to a reduction in cemetery
overhead and sales support and a reduction in the common overhead
allocation as mentioned in the funeral segment discussion above.

For the quarter, EBITDA (defined as earnings before gross
interest expense, taxes, depreciation and amortization) was $49.2
million compared to pro forma $50.0 million for the fourth
quarter last year. Interest expense, net, in the fourth quarter
of 2001 includes gross interest expense of $18.4 million
partially offset by interest income of $0.4 million compared to
$15.2 million offset by $2.4 million of interest income in the
fourth quarter of 2000. Gross interest expense increased due
principally to an approximate 300 basis point increase in our
average interest rate, partially offset by a $193.8 million
decrease in the average outstanding debt. Depreciation and
amortization was $19.1 million for the fourth quarter of both
2001 and 2000.

For the fiscal year ended October 31, 2001, EBITDA was $224.7
million compared to pro forma $229.4 million for the comparable
period of last year. Interest expense, net, includes gross
interest expense of $63.6 million offset by interest income of
$5.2 million compared to $61.4 million offset by $5.1 million of
interest income in fiscal year 2000. Gross interest expense
increased due principally to a 100 basis point increase in the
average interest rate, partially offset by a $114.5 million
decrease in the average debt outstanding. Depreciation and
amortization was $79.2 million compared to $77.5 million for the
prior year. Although not required to implement Statement of
Financial Accounting Standards ("SFAS") No. 142, "Goodwill and
Other Intangible Assets," until the first quarter of fiscal year
2003, the Company intends to implement it in the first quarter of
2002. The Company has not completed its review and analysis and
has disclosed in its July 31, 2001 Form 10-Q its preliminary
estimate that it would incur a pre-tax, noncash impairment charge
between $100 million and $300 million upon adoption. The Company
now believes that it is more likely that the charge will be at
the low end of that range. Upon the implementation of SFAS No.
142, goodwill will no longer be amortized. In fiscal 2001,
domestic amortization of goodwill was $14.4 million.

The Company announced that it generated $117 million in cash flow
from operations and $100 million in free cash flow (defined as
cash flow from operations less maintenance capital expenditures)
during the fiscal year ended October 31, 2001.

William E. Rowe, President and Chief Executive Officer, stated,
"As we have reported in the past, we continue to focus on cash
flow. To demonstrate that, in fiscal year 2001, we generated $100
million in free cash flow. This compares with $53 million in 2000
and negative $14 million in 1999."

In August 2001, the Company announced the sale of its foreign
operations in Mexico, Australia and New Zealand. Today, the
Company is announcing that it has entered into a binding contract
for the sale of its Southern European operations and that it has
sold its Northern European operations. In total, these
transactions have or will generate proceeds, including future tax
benefits, none of which have been realized to date, of $150 to
$160 million of the $200 to $250 million in total proceeds that
the Company expects to receive from the sale of all foreign
operations. All proceeds related to the sale of its foreign
operations either have been or will be used to repay debt. The
Company continues to have active discussions for the sale of its
remaining foreign operations in Canada and Argentina and expects
to complete these sales during 2002. Additionally, the Company
has realized the $20 million in proceeds that it originally
estimated for the sale of excess cemetery property, real estate
and under-performing assets and anticipates another $5 to $10
million in 2002.

Mr. Rowe added, "We are very pleased to report substantial
progress in our debt reduction initiatives. In total, we have
reduced our debt by over a quarter of a billion dollars this
fiscal year and ended the year with about $690 million in debt.
Our goal is to return debt levels to about $500 million or about
2.5 times domestic EBITDA. We expect to achieve that goal by the
second quarter of 2003 by further reducing debt in an amount of
approximately $140 to $150 million with the estimated proceeds
from the sale of our remaining foreign operations plus future tax
benefits associated with closed and prospective sales and with an
additional amount of about $50 to $55 million a year in free cash
flow. All tax benefits are expected to be realized in 2002 and
2003. Once we achieve our debt goal, we intend to focus on
growing revenues and earnings through business expansion
initiatives using internally generated free cash flow."

In fiscal year 2002, the Company expects to achieve earnings of
$0.38 to $0.42 per share and cash flow from operations between
$60 and $70 million. The details of the Company's guidance are
included in this press release along with the principal factors
expected to contribute to the changes from 2001 to 2002.

Mr. Marlowe commented, "In 2002, we expect to be positioning the
Company for business expansion in 2003. We will be exploring
several growth opportunities which will be funded out of future
free cash flow, including additional combination funeral homes,
operating partnerships, alternative service firms and other free-
standing funeral home businesses. And, once our debt target of
$500 million is achieved, we will be in a position to consider
purchasing high-quality firms."

Mr. Rowe concluded, "We began the year with a commitment to our
shareholders that we would focus on cash flow, pursue the sale of
our foreign operations, reduce and restructure our debt and focus
on the operation of our core businesses, and we have done that.
We exceeded our own expectations as we nearly doubled the free
cash flow generated last year. We announced substantial progress
with regard to the sale of operations in eight of the ten foreign
countries in which we operated. We completely restructured our
debt and reduced the amount maturing over the next two years by
over $600 million by pushing out the maturities four to seven
years. We are proud of our financial results for the quarter and
year including the results of our funeral operations to be
retained and the cost savings achieved in our cemetery
businesses. During fiscal year 2002, we plan to position our
Company to use future free cash to grow our revenues and our
earnings. We are all very excited about what the future holds for
Stewart Enterprises, and we are proud of the significant
accomplishments that have been achieved this year."

COMPANY FORECASTS FOR FISCAL YEAR 2002

The forecasts included herein were prepared by the Company's
management for the purpose of providing all investors with
forward-looking financial information frequently sought by the
investment community. The forecasts have not been audited or
otherwise approved by our independent accountants or by any
regulatory authority.

Accuracy of the forecasts is dependent on assumptions about
events that change over time and is thus susceptible to periodic
change based on actual experience and new developments. The
Company cautions readers that it assumes no obligation to update
or publicly release any revisions to the forecasts made herein
and, except to the extent required by applicable law, does not
intend to update or otherwise revise the forecasts more
frequently than quarterly.

The forecasts are based on a variety of estimates and assumptions
made by management of the Company with respect to, among other
things, industry performance; general economic, market, industry
and interest rate conditions; preneed and at-need sales
activities and trends; fluctuations in cost of goods sold and
other expenses; capital expenditures; and other matters that
cannot be accurately predicted, may not be realized and are
subject to significant business, economic and competitive
uncertainties, all of which are difficult to predict and many of
which are beyond the Company's control. Accordingly, there can be
no assurance that the assumptions made in preparing the forecasts
will prove accurate, and actual results may vary materially from
those contained in the forecasts. More specific information about
factors that could cause actual results to differ materially from
these forecasts is included herein.

For these reasons, the forecasts should not be regarded as an
accurate prediction of future results, but only of results that
may be obtained if substantially all of management's principal
expectations are realized. The Company does not represent or
warrant, and assumes no responsibility for, the completeness,
accuracy or reliability of the forecasts.

COMPANY NOTES TO FORECASTS FOR FISCAL YEAR 2002

The Company expects several factors to cause variances to
earnings and cash flow for fiscal year 2002 as compared to fiscal
year 2001, including the following: the sale of the Company's
foreign operations, the debt refinancing that occurred on June
29, 2001 resulting in increased borrowing costs, the anticipated
implementation of Statement of Financial Accounting Standards No.
142 (SFAS No. 142) which will eliminate the amortization of
goodwill, the expected internal growth from existing operations
and other non-recurring items that occurred in 2001.

The estimated anticipated impact of these factors on earnings is
summarized below:

                                                    Estimated
                                                     Earnings
                                                    Impact in
                                                   Fiscal Year
                                                       2002
----------------------------------------------------------------
In August 2001, the Company announced the sale of its
foreign operations in Mexico, Australia and New
Zealand. Today, the Company announced that it has
entered into a binding contract for the sale of its
Southern European operations and that it has sold its
Northern European operations. In total, these
transactions have generated or will generate proceeds,
including future tax benefits, none of which have been
realized to date, of $150 to $160 million of the $200
to $250 million in total proceeds that the Company
expects to receive from the sale of all foreign
operations. All proceeds related to the sale of its
foreign operations either have been or will be used to
repay debt.

The Company expects to complete the sale of its
remaining foreign operations in Canada and Argentina
during 2002.

All tax benefits are expected to be realized in 2002
and 2003.

The reduction in operating earnings from the sale of
the Company's foreign operations is expected to be
substantially offset by the interest expense savings
resulting from the proceeds from these sales used to
reduce the Company's average debt balance. The impact,
net of interest savings, in earnings before taxes
resulting from the sale of foreign operations is
projected to be approximately                      ($2 million)

The Company expects to benefit from the elimination
of foreign goodwill amortization resulting from the
impairment charge recorded in the third quarter of
2001.  The impact in before-tax earnings is expected
to be approximately                                 $1 million

The Company expects interest expense to increase due
to the Company's refinancing completed on
June 29, 2001, which increased the Company's average
borrowing rate by about 300 basis points. This
increase in the average interest rate is expected to
be partially offset by a reduction of the Company's
average debt balance, when compared to fiscal year
2001, due to the use of the Company's free cash flow
to repay debt. The decrease in interest expense
resulting from the application of the foreign asset
sales proceeds to repay debt is included above in
determining the net impact of foreign asset sales.
Accordingly, the projected increase in interest
expense, excluding the interest expense savings from
the sale of foreign assets, is expected to impact
before-tax earnings by approximately              ($18 million)

The Company intends to adopt SFAS No. 142 effective
November 1, 2001, and expects to benefit from the
elimination of domestic goodwill amortization for
fiscal year 2002, resulting in an impact in
before-tax earnings over 2001 of approximately     $14 million

During fiscal year 2001, the Company benefited from
nonrecurring net gains related to the sale of excess
cemetery property, funeral home real estate and other
assets.  Additionally, the Company expects the yield
on the assets in its perpetual care trust fund to be
below that achieved in fiscal year 2001.  The
adjustment for these items in fiscal year 2002 is
estimated to impact before-tax earnings as compared to
2001 by approximately                              ($9 million)

Domestic revenue is expected to grow 2 to 3 percent,
domestic costs are expected to grow 1 to 2 percent,
and funeral calls are expected to remain flat. Based
on these assumptions, the Company expects to achieve
internal growth in its domestic before-tax earnings    Up to
of                                                  $4 million

Principally due to the disposition of its foreign
assets and the implementation of SFAS No. 142, the
Company's tax rate is projected to increase to
approximately 38 percent, which is expected to impact
net earnings by about                              ($1 million)

    Projected fiscal year 2002 earnings per share $0.38 to $0.42


The estimated impact of these factors on cash
flow is summarized below:
                                                 Estimated Cash
                                                 Flow Impact in
                                                   Fiscal Year
                                                      2002
----------------------------------------------------------------

In fiscal year 2001, the Company realized cash
benefits from several nonrecurring tax items such as a
federal tax refund, a reduction in 2001 estimated tax
payments, a refund of certain state tax payments made
in fiscal year 2000 and repayment from the funeral
trust fund for tax payments made on behalf of the
trust. The cash flow impact on 2002 as compared to
2001 from these non-recurring tax transactions in 2001
is approximately                                  ($20 million)

The cash flow impact on 2002 as compared to 2001 from
the proceeds received in 2001 from the sale of excess
cemetery property, funeral home real estate and other
assets is approximately                           ($12 million)

Interest expenditures are expected to increase due to
an increase in the Company's average borrowing rate
subsequent to the June 29, 2001 debt refinancing,
partially offset by a reduction in the Company's
average debt balance compared to fiscal year 2001. As
a result, the Company expects to pay additional
interest after taxes which is expected to impact cash
flow by approximately                            ($11 million)

    Projected fiscal year 2002 cash flow from      $60 to $70
     operations                                      million

    Projected fiscal year 2002 free cash flow
     (cash flow from operations less maintenance   $50 to $55
     capital expenditures)                           million

For the purposes of the forecasts included herein, "EBITDA" is
defined as earnings before gross interest, taxes, depreciation
and amortization. EBITDA is a widely accepted financial indicator
of a company's ability to service and/or incur indebtedness.
However, EBITDA is not a financial measure determined under
accounting principles generally accepted in the United States of
America and should not be considered as an alternative to net
income as a measure of operating results or to cash flows from
operating activities as a measure of funds available for
discretionary or other liquidity purposes.

CAUTIONARY STATEMENTS

The forecasts included herein are forward-looking statements that
involve a number of risks, uncertainties and assumptions,
including:

The Company may experience declines in preneed sales due to
numerous factors including changes made to contract terms and
sales force compensation, or a weakening economy. Declines in
preneed sales would reduce the Company's backlog and revenue and
could reduce its future market share.

In an effort to increase cash flow, the Company modified its
preneed sales strategies early in fiscal year 2000 by increasing
finance charges, requiring larger down payments and shortening
installment payment terms. Later in fiscal year 2000, the Company
changed the compensation structure for its preneed sales force.
These changes, and the accompanying sales force attrition and
adverse impact on sales force morale, caused preneed sales to
decline. Although the Company does not anticipate making further
significant changes in these areas, it may decide that further
adjustments are advisable, which could cause additional declines
in preneed sales. In addition, a weakening economy that causes
customers to have less discretionary income could cause a decline
in preneed sales. Declines in preneed cemetery property sales
would reduce current revenue, and declines in other preneed sales
would reduce the Company's backlog and future revenue and could
reduce future market share.

Increased preneed sales may have a negative impact on cash flow.

Preneed sales of cemetery property and funeral and cemetery
products and services are generally cash flow negative initially,
primarily due to the commissions paid on the sale, the portion of
the sales proceeds required to be placed into trust and the terms
of the particular contract (such as the size of the down payment
required and the length of the contract). In fiscal year 2000,
the Company changed the terms and conditions of preneed sales
contracts and commissions and moderated its preneed sales effort
in order to reduce the initial negative impact on cash flow.
Nevertheless, the Company will continue to invest a significant
portion of cash flow in preneed acquisition costs, which reduces
cash flow available for other activities, and, to the extent
preneed activities are increased, cash flow will be further
reduced, and the Company's ability to service debt could be
adversely affected.

Price competition could reduce market share or cause the Company
to reduce prices to retain or recapture market share, either of
which could reduce revenues and margins.

The Company's funeral home and cemetery operations generally face
intense competition in local markets that typically are served by
numerous funeral homes and cemetery firms. The Company has
historically experienced price competition primarily from
independent funeral home and cemetery operators, and from
monument dealers, casket retailers, low-cost funeral providers
and other non-traditional providers of services or products. In
the past, this price competition has resulted in losing market
share in some markets. In other markets, the Company has had to
reduce prices and thereby profit margins in order to retain or
recapture market share. In addition, because of competition from
these types of competitors in some key markets, in fiscal year
1999 the Company lowered its goals for increases in average
revenue per funeral service performed in the future. Increased
price competition in the future could further reduce revenues,
profit margins and the backlog.

Increased advertising or better marketing by competitors, or
increased services from Internet providers, could cause the
Company to lose market share and revenues or cause the Company to
incur increased costs in order to retain or recapture the
Company's market share.

In recent years, marketing through television, radio and print
advertising, direct mailings and personal sales calls has
increased with respect to the sales of preneed funeral services.
Extensive advertising or effective marketing by competitors in
local markets could cause the Company to lose market share and
revenues or cause it to increase marketing costs. In addition,
competitors may change the types or mix of products or services
offered. These changes may attract customers, causing the Company
to lose market share and revenue or to incur costs in response to
competition to vary the types or mix of products or services
offered by the Company. Also, increased use of the Internet by
customers to research and/or purchase products and services could
cause the Company to lose market share to competitors offering to
sell products or services over the Internet. The Company does not
currently sell products or services over the Internet.

Earnings from and principal of trust funds and escrow accounts
could be reduced by changes in stock and bond prices and interest
and dividend rates or by a decline in the size of the funds.

Earnings and investment gains and losses on trust funds and
escrow accounts are affected by financial market conditions that
are not within the Company's control. Earnings are also affected
by the mix of fixed-income and equity securities that the Company
chooses to maintain in the funds, and it may not choose the
optimal mix for any particular market condition. The size of the
funds depends upon the level of preneed sales, the amount of
investment gains or losses and funds added through acquisitions,
if any. Declines in earnings from perpetual care trust funds
would cause a decline in current revenues, while declines in
earnings from other trust funds and escrow accounts could cause a
decline in future revenues. In addition, any significant or
sustained investment losses could result in there being
insufficient funds in the trusts to cover the cost of delivering
services and merchandise or maintaining cemeteries in the future.
Any such deficiency would have to be covered by cash flow, which
could have a material adverse effect on the Company's financial
condition.

The Company's foreign operations are subject to political,
economic, currency and other risks that could adversely impact
its financial condition, operating results or cash flow.

The Company's foreign operations are subject to risks inherent in
doing business in foreign countries. Risks associated with
operating internationally include political, social and economic
instability, increased operating costs, expropriation and complex
and changing government regulations, all of which are beyond the
Company's control. To the extent the Company makes investments in
foreign assets or receives revenues in currencies other than U.S.
dollars, the value of assets and income could be, and have in the
past been, adversely affected by fluctuations in the value of
local currencies.

Declines in the number of deaths in the Company's markets can
cause a decrease in revenues. Changes in the number of deaths are
not predictable from market to market or over the short term.

Declines in the number of deaths could cause at-need sales of
funeral and cemetery services, property and merchandise to
decline, which could decrease revenues. Although the United
States Bureau of the Census estimates that the number of deaths
in the United States will increase by approximately 1 percent per
year from 2000 to 2010, longer lifespans could reduce the rate of
deaths. In addition, changes in the number of deaths can vary
among local markets and from quarter to quarter, and variations
in the number of deaths in the Company's markets or from quarter
to quarter are not predictable. These variations can cause
revenues to fluctuate.

The increasing number of cremations in the United States could
cause revenues to decline because the Company could lose market
share to firms specializing in cremations. In addition, basic
cremations produce no revenues for cemetery operations and lesser
funeral revenues and, in certain cases, profit margins than
traditional funerals.

The Company's traditional cemetery and funeral service operations
face competition from the increasing number of cremations in the
United States. Industry studies indicate that the percentage of
cremations has steadily increased and that cremations will
represent approximately 36 percent of the United States burial
market by the year 2010, compared to 25 percent in 1999. The
trend toward cremation could cause cemeteries and traditional
funeral homes to lose market share and revenues to firms
specializing in cremations. In addition, basic cremations (with
no funeral service, casket, urn, mausoleum niche, columbarium
niche or burial) produce no revenues for cemetery operations and
lower revenues than traditional funerals and, when delivered at a
traditional funeral home, produce lower profit margins as well.

If the Company is not able to respond effectively to changing
consumer preferences, the Company's market share, revenues and
profitability could decrease.

Future market share, revenues and profits will depend in part on
the Company's ability to anticipate, identify and respond to
changing consumer preferences. During fiscal year 2000, the
Company began to implement strategies based on a proprietary,
extensive study of consumer preferences it commissioned in 1999.
However, the Company may not correctly anticipate or identify
trends in consumer preferences, or it may identify them later
than its competitors. In addition, any strategies the Company may
implement to address these trends may prove incorrect or
ineffective.

Because the funeral and cemetery businesses are high fixed-cost
businesses, positive or negative changes in revenue can have a
disproportionately large effect on cash flow and profits.

Companies in the funeral home and cemetery business must incur
many of the costs of operating and maintaining facilities, land
and equipment regardless of the level of sales in any given
period. For example, the Company must pay salaries, utilities,
property taxes and maintenance costs on funeral homes and
maintain the grounds of cemeteries regardless of the number of
funeral services or interments performed. Because the Company
cannot decrease these costs significantly or rapidly when it
experiences declines in sales, declines in sales can cause
margins, profits and cash flow to decline at a greater rate than
the decline in revenues.

Changes or increases in, or failure to comply with, regulations
applicable to the Company's business could increase costs.

The death care industry is subject to extensive regulation and
licensing requirements under federal, state and local laws and
the laws of foreign jurisdictions where it operates. For example,
the funeral home industry is regulated by the Federal Trade
Commission, which requires funeral homes to take actions designed
to protect consumers. State laws impose licensing requirements
and regulate preneed sales. Embalming facilities are subject to
stringent environmental and health regulations. Compliance with
these regulations is burdensome on the Company, and it is always
at risk of not complying with the regulations. In addition, from
time to time, governments and agencies propose to amend or add
regulations, which could increase costs.

CONTACT:  Stewart Enterprises Inc., Metairie
          Kenneth C. Budde, 504/837-5880
          http://www.stewartenterprises.com



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

ANTELCO: Tariff, Subscription Hike Assures Buyer US$100M Yearly
---------------------------------------------------------------
The buyer of Paraguayan telephone operator Antelco, now named
Copaco, could recoup its investment in two years after the
government decided recently to raise call tariffs and
subscription fee.

According to a report by Noticias, the move secures for the new
owner of the Company an additional US$100 million in annual
income, making it possible for a return on investment within two
years.

The government is peddling Copaco for a minimum price of US$200
million. Industry observers, however, believe the firm's future
operator will need US$200 million more to reactivate operations.

Copaco has about 300,000 telephone lines. The new hike in local
call tariffs makes the Paraguayan telephone system even more
expensive. Already, Paraguayans pay the highest tariff within
Latin America.


ANTELCO: Group Raps Two-Year Market Monopoly Given To New Owner
---------------------------------------------------------------
The privatization of Antelco, recently renamed Copaco, could
result at best in a two-year monopoly and at worst a five-year
duopoly of Paraguay's telephone industry, reports Noticias.

A group of Internet service providers recently complained to the
telecoms council Conatel, calling its proposed regulation unfair
as it impairs competition during the transition following
Copaco's privatization.

Some observers of the deal point out that Copaco's two-year
monopoly over Internet access and Personal Communication Services
is inconsistent with the goal of gradually opening the market to
competition.



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

SIDOR: Defaults On $31.3M Interest Payment for Bank Loans
---------------------------------------------------------
Venezuela's biggest steelmaker Siderurgica del Orinoco (Sidor)
failed to make a $31.3-million interest payment on its bank
loans, reports Bloomberg.

The missed payment comes at the backdrop of Sidor's problematic
financial condition, which has worsened because of low worldwide
steel prices.

At the same time, Amazonia Ltd, the holding company that controls
Sidor, also missed an $8.1 million loan interest payment, said
Mexican steelmaker Hylsamex SA, which owns a stake in Amazonia
and Sidor.

The missed payments "are the consequence of the negative
conditions that persist in the international steel market,"
Hylsamex said in a statement.

Amazonia and Sidor started talks with creditors at the end of
October to restructure Sidor's $449 million of debt.

Sidor is 70-percent owned by Argentina's Siderar, Hylsamex, Tubos
de Acero de Mexico SA, Brazil's Usinas Siderurgica de Minas
Gerais and Venezuela's Siderurgica Venezolana Sivensa SA. The
remaining 30 percent is owned by the Venezuelan government.



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
written permission of the publishers.

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.


* * * End of Transmission * * *