TCRLA_Public/020131.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, January 31, 2002, Vol. 3, Issue 22

                           Headlines


A R G E N T I N A

AEROLINEAS ARGENTINAS: New Owner Predicts Break Even This Year
BANCO FRANCES/GRUPO GALICIA: Govt. Relief Bumps Shares Up
TGN: S&P Lowers Rating to Selective Default (SD)
TGN: S&P Lowers Ratings to 'CC' on 3 Argentine SF Transactions
TGN: Meets With Banks, Creditors To Discuss Debt Payment Options


B E R M U D A

GLOBAL CROSSING: S&P Lowers Ratings To D After Bankruptcy Filing


B R A Z I L

BANCO NACIONAL: Judge Imposes Fines Of Up To BRL10 MM
EMBRATEL: Shares Nose-Dive As Investors Question WorldCom Books
GLOBO CABO: Warns it Won't Meet 2001 Earnings Projections
INEPAR: Company Silent on Debenture Holders' Lawsuit
TRANSBRASIL: Street Second Guesses New Owner's Restart Plans


C O L O M B I A

JEANS & JACKETS: Granted Creditor Protection


D O M I N I C A N   R E P U B L I C

K-MART CORPORATION: Company Profile


M E X I C O

AHMSA: CEO Plans To Gain Exemption From U.S. Steel Duties
BUFETE INDUSTRIAL: Initiates Pre-Bankruptcy Proceedings
GRUPO DESC: Poor 4Q Earnings Expectation Pulls Shares Down
GRUPO MEXICO: Regulatory Concerns May Derail Carso Deal
HAYES LEMMERZ: Court Approves $200 MM DIP Financing Agreement
MEXLUB: Pemex Officials Question Sale Process
VITRO: Salomon Ups Ratings To `Neutral' on Valuation Call


     - - - - - - - - - -

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

AEROLINEAS ARGENTINAS: New Owner Predicts Break Even This Year
--------------------------------------------------------------
Air Comet, the new owner of Aerolineas Argentinas (AA), said that
the Argentine national carrier will break even in 2002 unless
demand falls, reports Expansion. Antonio Mata, the airline's
chief executive, informed that a prudent and realistic budget has
been calculated, and that AA is expected to achieve a business
turnover of EUR1.2 billion. Mata's announcement came amid a
lackluster outlook in the air sector, as well as Argentina's
economic turmoil.

Conflict between workers of AA and the Spanish state industrial
holding company Sepi - the former owner - led the airline to
cease its activities and file for bankruptcy protection. The
airline ended 2001 with sales of EUR600 million and losses of
approximately EUR450 million.


BANCO FRANCES/GRUPO GALICIA: Govt. Relief Bumps Shares Up
---------------------------------------------------------
Shares of Argentine banks Grupo Financiero Galicia SA and BBVA
Banco Frances SA rose on optimism the government will increase
discount credit lines to banks with liquidity problems.

According to a report released by Bloomberg, Grupo Galicia,
holding company for the biggest Argentine-owned bank, rose 3.45
percent to ARS60 centavos. Over the last 12 months, the group's
share price has fallen 71 as concern over the economy increases
and the government limited deposit withdrawals.

The same report reveals that BBVA Banco Frances SA rose 7.51
percent to ARS3.58 pesos. Argentina's fifth-largest bank is
positioned to benefit from government initiatives. New regulatory
conditions will allow the country to negotiate new loans with the
International Monetary Fund in an effort to strengthen its
financial system.

CONTACTS:  BANCO FRANCES
           Gervasio Collar Zabaleta, Chairman
           Antonio Martinez Jorquera, CEO
           Jorge Bledel, Head of Treasury and Wholesale Banking

           Their address:
           Reconquista 199
           1003 Buenos Aires, Argentina
           Phone: +54-11-4346-4000
           Fax: +54-11-4346-4320


TGN: S&P Lowers Rating to Selective Default (SD)
------------------------------------------------
Standard & Poor's lowered its local currency corporate credit
rating on Argentina-based Transportadora de Gas del Norte S.A.
(TGN) to (selective default) 'SD' from triple-'C'-minus. Standard
& Poor's 'SD' foreign currency and double-'C' senior unsecured
ratings on the company remain unchanged.

The rating action follows the company's announcement that it
missed debt service payments on certain financial obligations.
The company did not make the debt service payments on the TGN IFC
Trust I and II B loan and interest payments on the convertibility
risk insured bond transactions. However, investors received the
payments in a timely manner from the outstanding reserve funds of
these deals.

The missed payments reflect the negative impact the unsettled
devaluation, which followed the end of convertibility, has had on
the company's cash flow. As part of these changes, the government
'pesofied' the company's tariffs without allowing for any
compensating adjustments, which, combined with the lack of
liquidity in the financial system, worsened the company's
operating cash flow.

TGN has a 35-year exclusive license to operate Argentina's
natural gas north pipeline transmission system, which includes
the center-west pipeline and the north pipeline. The company's
pipeline network has approximately 3,329 miles of pipelines, with
a transportation capacity of about 1,864 million cubic feet per
day.

CONTACT:  STANDARD & POOR'S
          Matias Badia, Buenos Aires, +54-114-891-2129
          Lidia Polakovic, Buenos Aires, +54-114-891-2130


TGN: S&P Lowers Ratings to 'CC' on 3 Argentine SF Transactions
--------------------------------------------------------------
Standard & Poor's lowered its ratings on three Argentine
structured transactions, TGN IFC Trust I, TGN IFC Trust II, and
TGN CRIBs Financial Trust I (CRIBs) to double-'C' from triple-
'C'-minus, following the downgrade of the local currency rating
of the underlying obligor for these transactions, Transportadora
de Gas del Norte S.A. (TGN) to Selective default from triple-'C'-
minus, on Jan. 29, 2002 (see list).

The local currency rating downgrade was triggered by TGN's
inability to make debt service payments on the structured
transactions; US$3 million was due on Jan. 23, 2002 for the TGN
IFC Trust I and II B loan payments, and US$9.5 million was due on
Jan. 25, 2002 for the interest payment on the CRIBs transaction.
However, none of the transactions missed their debt service
payments, as payments to investors were made from offshore LOCs.

The TGN IFC Trust I and II transactions benefit from
International Finance Corp.'s preferred creditor status umbrella.
The CRIBs transaction benefits from a transfer and convertibility
insurance policy issued by Overseas Private Investment Corp.
(OPIC).

The next payment (US$3 million) by TGN IFC Trust I and II is due
on February 23, 2002. There are no funds remaining from the LOCs.
Therefore, the continued performance of these transactions will
depend on TGN's ability and willingness to make payments in U.S.
dollars based on its creditworthiness and government payment
restrictions on convertibility, transfer and debt payments,
including those to preferred creditor institutions.

The next due payment for the CRIBs transaction is on July 25,
2002 for US$9.5 million. The ability of the transaction to make
the next scheduled payment in July will depend on the existence
of transfer restrictions and/or TGN's ability and willingness to
make the necessary Argentine peso payments to a local account so
that OPIC will honor a claim to provide U.S. dollar payments to
investors.

    RATINGS LOWERED

    Transaction                           Rating
                                        To       From
    TGN IFC Trust I                     CC       CCC-
    TGN IFC Trust II                    CC       CCC-
    TGN CRIBs Financial Trust I         CC       CCC-

CONTACT:  Standard & Poor's
          Jorge Solari, +54-114-891-2114
          Juan Pablo De Mollein, +54-114-891-2113
          Lidia Polakovic, +54-114-891-2130
          Diane Audino, +1-212-438-2388


TGN: Meets With Banks, Creditors To Discuss Debt Payment Options
----------------------------------------------------------------
Argentine gas transport company Transportadora de Gas del Norte
(TGN) is working with banks and creditors in an attempt to find
ways to comply with its debt obligations, reports Business News
Americas. The move comes as the government introduces economic
measures making it even more difficult for the company to pay its
creditors.

Investors received payments on TGN debt due last week from an
outside reserve that had been set up specifically to make
payments in a crisis. This included payments due on a loan from
the International Finance Corporation and a US$175-million bond
with Overseas Private Investment Corporation (OPIC) insurance
guarantee.

However, the reserve amounts will not cover payments for much
longer and other alternatives will be necessary, said the source,
who preferred to remain anonymous.



=============
B E R M U D A
=============

GLOBAL CROSSING: S&P Lowers Ratings To D After Bankruptcy Filing
----------------------------------------------------------------
Standard & Poor's lowered Monday its ratings on Hamilton,
Bermuda-based Global Crossing Ltd. and certain related entities
to 'D'. Concurrently, the ratings were removed from CreditWatch
negative, where they had been placed August 13, 2001. The rating
action follows the company's filing of bankruptcy protection.

In addition, the ratings on Asia Global Crossing Ltd. remain on
CreditWatch with negative implications because the 58.8 percent-
owned subsidiary was not part of the bankruptcy filing.


RATINGS LOWERED, REMOVED FROM CREDITWATCH

Global Crossing Ltd.                          TO     FROM
  Corporate credit rating                     D      CCC-
  Preferred stock                             D      C

Global Crossing Holdings Ltd.
  Corporate credit rating                     D      CCC-
  Senior unsecured debt                       D      C
  $800 million 9.625% senior unsecured notes
  (Guaranteed by Global Crossing Ltd.)        D      C
  Senior secured bank loan                    D      CCC-
  Preferred stock                             D      C


Frontier Corp.
  Corporate credit rating                     D      CCC-
  Senior unsecured debt                       D      C
  Preferred stock                             D      C


RATINGS REMAIN ON CREDITWATCH NEGATIVE

Asia Global Crossing Ltd.
  Corporate credit rating                     CCC+
  Senior unsecured debt                       CCC-


Global Crossing said it and certain of its affiliates began
Chapter 11 proceedings in the U.S. Bankruptcy Court for the
Southern District of New York, and coordinated proceedings in the
Supreme Court of Bermuda

For more information, see Global Crossing Bankruptcy News Issue 1
at: http://www.bankrupt.com/global.txt


S&P ANALYSTS:  NEW YORK
               Rosemarie Kalinowski, (1) 212-438-7841
               Richard Siderman, (1) 212-438-7863

CONTACTS:  Gary Winnick, Founder & Chairman
           John Legere, CEO
           Dan Cohrs, CFO

           THEIR ADDRESS:
           Wessex House
           45 Reid St
           Hamilton, HM 12
           Bermuda
           Tel: (441) 296-8600
           Email: investors@globalcrossing.com
           URL:  www.globalcrossing.com


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

BANCO NACIONAL: Judge Imposes Fines Of Up To BRL10 MM
-----------------------------------------------------
The federal judge in charge of the case against the former owner
and the seven former executives of Brazil's now-defunct Banco
Nacional has imposed fines of up to BRL10 million reais (some
US$4.2 million) for those responsible for the bank's failure,
reports EFE.

The bank's former owner and directors received sentences ranging
from 21 to 29 years in prison after being convicted of fraud,
criminal conspiracy, capital flight and falsification of bank
documents.

However, Supreme Court Chief Justice Marco Aurelio ordered the
defendants' release from the Rio de Janeiro prison where they had
been taken into custody late last week, saying they should be
allowed to await the outcome of their appeal process in liberty.
But he ordered that they remain in Rio de Janeiro.

Banco Nacional's crisis became evident in 1986, when its accounts
showed losses of US$600 million, more than twice the US$250
million it was holding in liquid assets.

To disguise the losses, the directors created false loans on the
bank's balance sheet using more than 600 phantom accounts,
according to the Attorney General's Office.

The fraudulent operations were expanded, with losses mounting to
US$9.2 billion by the time Brazil's Central Bank took over Banco
Nacional on Nov. 18, 1995.



EMBRATEL: Shares Nose-Dive As Investors Question WorldCom Books
---------------------------------------------------------------
Shares in leading Brazilian long-distance phone operator
Embratel, which is controlled by WorldCom, plunged 11 percent to
BRL8.20 on concern investors may abandon emerging market equities
as questions grow about company accounting practices in the U.S.,
says Bloomberg.

"We are living in a period where people don't have confidence in
company results," said Fabio Galdino de Carvalho, equity manager
at Sudameris Corretora in Sao Paulo.

"If investors want to reduce their exposure in equities because
of a lack of confidence in companies, they will sell shares in
Brazil as well as other emerging markets even before selling them
in the U.S."

CONTACTS:  Rua Presidente Vargas, 1012
           Centro - Rio de Janeiro - RJ
           CEP: 20179-900
           Tel: 2519 9662
           Fax: 2519 6388
           E-mail: invest@embratel.com.br

           Mariana Palmeira, 55 21 2519-3654
           mpalm@embratel.com.br

           Silvia Pereira
           Investor Relations Manager
           silvia.pereira@embratel.com.br

           Marcos Baptista
           marcos.baptista@embratel.com.br

           Graziela Fortunato
           graziela.fortunato@embratel.com.br

           Marcio Debellian
           debellian@embratel.com.br


GLOBO CABO: Warns it Won't Meet 2001 Earnings Projections
---------------------------------------------------------
Brazil's biggest cable television operator, Globo Cabo, expects
2001 earnings before interest, taxes, depreciation and
amortization (EBITDA) to fall below its projected earnings of
between BRL280 million and BRL300 million (US$117 million and
US$125 million), reports Reuters.

A slowdown in Brazil's economic growth last year reduced the
number of Globo Cabo subscribers by 41,600 to 1.43 million while
a 16 percent slump in the real caused the Company's debt, most of
which is denominated in U.S. dollars, to rise. By Sept. 30, debt
had grown to BRL1.82 billion from BRL1.55 billion a year earlier.

Globo Cabo, in a statement, said it renegotiated contracts with
movie channels to lock in future prices. The new contracts
involved Globo Cabo making payments that would be provisioned in
the fourth quarter.

The statement didn't specify how much the company would provision
nor provide a new estimate of Ebitda.

"We do not view this positively for Globo Cabo," said Michael
Simpson, an analyst at Lehman Brothers Holdings Inc. in New York.
The company "cannot afford to make such prepayments," he added.

The Company's stock was one of the worst performers in percentage
terms on the Bovespa in 2001, falling 62 percent. The drop in
share value reflects the companies losses in cable TV and
Internet subscribers, amplified by the general economic downturn
affecting its bottom line.

CONTACT:  GLOBO CABO S.A.
          INVESTORS:
          Luis Henrique Martinez, 5511-5186-2684,
          lmartinez@globocabo.com.br,

          Marcio Minoru, 5511-5186-2811,
          minoru@globocabo.com.br,


INEPAR: Company Silent on Debenture Holders' Lawsuit
----------------------------------------------------
Inepar is yet to comment on a legal action being sought by a
group of debenture holders over overdue credits, which have not
been released by the Company.

According to a report released by Jornal do Brasil, a group of
creditors is demanding redemption of a R$2.5-million piece that
came due in December, and another of R$19 million that will
expire in February.

Meanwhile, Inepar is planning on another issue worth R$270
million, but is awaiting the approval from the CVM (Comissao de
Bolsa de Valores). This approval has been delayed by requests
from the CVM for more current financial figures from Inepar.

CONTACTS:  Atilano De Oms Sobrinho, Chairman
           Rodolfo Andriani, Joint Chairman
           Jose L. Bussular, Finance Director

           THEIR ADDRESS:
           Avenida Juscelino K. de Oliveira, 11400
           Cic  81450-900 Curitiba - PR
           Brazil
           Phone   +55 41 350-7551
           Home Page http://www.inepar.com.br


TRANSBRASIL: Street Second Guesses New Owner's Restart Plans
------------------------------------------------------------
Dilson Prado da Fonseca, Transbrasil's new owner, may be allowed
to resume the Brazilian airline's operations, reports South
American Business Information. But the possibility hinges on a
number of factors. Word on the street says, if Fonseca can
demonstrate that he can comply with certain requirements, such as
paying taxes, not increasing the debt of Infraero, the company
which administers airports and schedule regular flights, he might
have a viable airline to run.

However, with Fonseca's poor credit record -- a default with the
Internal Revenue Service - speculation is mounting concerning his
ability to deliver. Some suggest that foreign capital may be
backing him or that the purchase is a means by which the previous
owner of Transbrasil, Mr. Celso Cipriani, may be attempting to
avoid seizure of goods belonging to the airline by creditors.

According to Fonseca, a debenture issue of US$25 million is in
the works by the unnamed investor or investors in order to raise
the cash necessary to get the airline operating again, but the
Commissao de Valores Mobiliarios said it is not aware of the
plan.

Meanwhile, Transbrasil, which has BRL1 billion in debt, is yet to
face a third bankruptcy proceeding filed against it, this time by
the Faro Fino restaurant.



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

JEANS & JACKETS: Granted Creditor Protection
--------------------------------------------
Colombian firm Jeans & Jackets has obtained creditor protection
in the form of Economic Intervention Law (Ley 550), a Colombian
regulation allowing indebted firms to seek out debt restructuring
deals, reports South American Business Information. The fashion
chain filed for the protection after racking up COP12.11 billion
in debts.

Jeans & Jackets, which has assets of COP14.86 billion, posted
COP3.334 billion in net losses last year, plus accumulated losses
of COP2 billion and a cash-flow deficit of COP3.2 billion.

Jeans & Jackets was founded in 1984 as Productora Colombiana de
Moda Limitada. The company currently has 16 stores in Bogota, 13
in other Colombian cities and 4 franchises abroad, employing
about 270 people.

CONTACT:  JEANS & JACKETS
          Cra 40 No 16-55
          Santafe de Bogota, D.C.
          Colombia
          Tel: 571-262-1066, 571-313-2652, 571-313-2701
          Fax: 571-368-8983
          URL: http://www.jeansandjackets.com



===================================
D O M I N I C A N   R E P U B L I C
===================================

K-MART CORPORATION: Company Profile
-----------------------------------
NAME: KMART CORPORATION
      3100 WEST BIG BEAVER ROAD
      TROY, MICHIGAN 48084

PHONE: (248) 463-1000

WEBSITE: http://www.kmartcorp.com

EXECUTIVE MANAGEMENT TEAM:

James B. Adamson, Chairman of the Board
Charles C. Conaway, CEO
John T. McDonald, CFO
Randy L. Allen, Executive VP, Strategic Initiatives and Chief
      Diversity Officer
A. B. D'Onofrio, Executive VP, Chief Supply Chain Officer
Cecil B. Kearse, Executive VP, Merchandising
David P. Rots, Executive VP, Chief Administrative Officer

INVESTOR RELATIONS:

Juli Musch, Divisional Vice President
Kmart Corporation, Investor Relations Department
3100 W. Big Beaver Road
Troy, MI 48084-3163
(248) 463-1040

TYPE OF BUSINESS:  Kmart Corporation is a $37 billion company
                   that serves America with more than 2,100 Kmart
                   and Kmart SuperCenter retail outlets and
                   through its e-commerce shopping site at
                   http://www.bluelight.com. Kmart Corporation
                   is the nation's second largest discount
                   retailer and the third largest general
                   merchandise retailer. Approximately 85% of
                   United States residents live within 15 miles
                   of one of Kmart's 2,114 discount stores. Kmart
                   has locations in each of the 50 United States,
                   Puerto Rico, the U.S. Virgin Islands and Guam.

SIC: Retail

EMPLOYEES: Approximately 250,000

NET SALES: $8.019 billion, 13-week quarter ended October 31, 2001
           $5.524 billion, four-week period ended January 2, 2002

TOTAL ASSETS: $17,007,000,000 as of Oct 31, 2001

TOTAL LIABILITIES: $17,007,000,000 as of Oct 31, 2001

TRIGGER EVENT:  Kmart Corp. last week filed for petition in the
                U.S. Bankruptcy Court for the Northern District
                of Illinois in Chicago after a dismal holiday
                sales season and cutthroat competition from
                rivals Wal-Mart Stores Inc. and Target Corp. left
                the Company strapped for cash.

                The Company's recent bankruptcy filing raised
                doubts to its planned investments in the
                Dominican Republic. However, according to Danilo
                del Rosario, the director of the Office for the
                Promotion of Investment, the Company's planned
                investments for DR will continue despite the
                filing.

                Kmart announced last year that it will open five
                supercenters in the country with an investment of
                US$125 million. The first of these would be at
                the corner of Lope de Vega and John F. Kennedy in
                Santo Domingo.

LEGAL ADVISOR: John Wm. "Jack" Butler, Jr., Esq.
               Skadden, Arps, Slate, Meagher & Flom, LLP
               333 West Wacker Drive
               Chicago, IL 60606
               Tel. (312) 407-0700

FINANCIAL ADVISOR: Henry S. Miller
                   Dresdner Kleinwort Wasserstein
                   1301 Ave. of the Americas
                   New York, NY 10019
                   Telephone (212) 969-2700
                   Fax (212) 969-7836

AUDITOR: PricewaterhouseCoopers LLP
         400 Renaissance Center
         Detroit, Michigan 48243
         Telephone: [1] (313) 394 6000

REAL ESTATE CONSULTANT: Michael P. Deighan
                        Rockwood/Gemini Advisors, LLC
                        555 Fifth Avenue
                        New York, NY 10017-2416

INVENTORY DISPOSITION CONSULTANT: Alan Cohen Abacus Advisory &
                                  Consulting Corp. LLC

CLAIMS AGENT: Trumbull Services, L.L.C.
              4 Griffin Road
              North Windsor, CT 06095
              Telephone (888) 410-2963
              Fax (888) 310-6350

UNITED STATES TRUSTEE: Ira Bodenstein
                       Sandra Rasnak
                       Roman L. Sukley
                       Office of the United States Trustee
                       227 West Monroe Street, Suite 3350
                       Chicago, IL 60606
                       Telephone (312) 886-5785
                       Fax (312) 886-5794

CREDITORS:  Bank of New York
            125 Penn Plaza
            New York, NY 10119
            Attn: Paul Schmazel
            Phone: 212-896-7172
            Fax: 212-896-7294

            BankBoston, N.A.
            100 Federal Street
            Boston, MA 02110
            Attn: Kathleen Dimock
            Phone: 617-434-3830
            Fax: 617-434-6685

            Chase II
            c/o Chase Manhattan Bank
            1 Chase Manhattan Plaza
            New York, NY 10081
            Attn: Barry Bergman
            Phone: 212-270-0203
            Fax: 212-270-5646

Last TCRLA Headline DATE:  Wednesday, January 29, 2002, Vol. 3,
                           Issue 20



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

AHMSA: CEO Plans To Gain Exemption From U.S. Steel Duties
---------------------------------------------------------
Alonso Ancira, chief executive officer of Mexican steel company
Altos Hornos de Mexico (AHMSA), insisted that Mexico should
guarantee an increase on its own steel import duties, as allowed
by the Organization of Economic Cooperation and Development
(OECD), in order to gain exemption from U.S. steel duties.

In a Mexico City daily Reforma report, Ancira said that U.S.
steel companies will support Mexico if and when the Mexican
government guarantees protective steps to prevent the nation from
being a backdoor for the entry of steel from other countries into
the United States.

Unfair steel imports have damaged the U.S. steel industry to the
extent that 27 percent of the sector is now not only under
suspensions of debt payments, but permanently closed or on the
virge of closing, Ancira said.

AHMSA recently submitted its debt-restructuring plan to the U.S.
Securities and Exchange Commission (SEC). According to Ancira,
the submission of the document provides certainty over the
Company's intention to lift its suspension on debt payments.

"We are planning to meet our obligations, with a coherent
business plan that guarantees that the Company can sustain
itself," he said, adding, AHMSA could resume payments of its
debts by June.

CONTACTS:  Alonso Ancira Elizondo, CEO, Vice Chairman, Pres.&CEO
           Jorge Ancira Elizondo, Chief Financial Officer
           Manuel Ancira Elizondo, Chief Operating Officer

           Their Address:
           Prolongacion B. Juarez s/n,
           Monclova , Coahuila 25770
           Mexico
           http://www.ahmsa.com
           Phone: +52 86 33 81 72
           Fax: +52 86 33 65 66


BUFETE INDUSTRIAL: Initiates Pre-Bankruptcy Proceedings
-------------------------------------------------------
A federal judge officially declared pre-bankruptcy proceedings
for Bufete Industrial and its nine subsidiaries, granting the
Company's request to enter an official stage of negotiation with
its 1,890 creditors, reports Mexico City daily Reforma.

The move, believed to be the most significant case since the new
Mexican bankruptcy law took effect, means that the embattled
construction company has exactly one year to reach agreements
with its creditors in order to avoid being declared completely
bankrupt.

During the period, the owners of Bufete and its subsidiaries
cannot sell any company assets or touch the company's bank
accounts, except to pay employees and meet tax obligations.

Bufete has more than US$500 million in debt, almost half of which
is owed to foreign companies.

CONTACTS:  Jose Fernandez, President
           Luis Escalante, Exec. VP - Business Development
           Ernesto Montero, Exec. VP - Operations
           Ramon Lignan, Sr. VP and Comptroller
           Arturo Anel, Sr. VP of Projects

           THEIR ADDRESS:
           Moras 850, Colonia del Valle
           03100 Mexico City, Mexico
           Phone: (525) 723-4728
           Fax: (525) 420-8903
           Email: imendoza@bufete.com


GRUPO DESC: Poor 4Q Earnings Expectation Pulls Shares Down
----------------------------------------------------------
Desc SA, an industrial group with subsidiaries in auto parts,
petrochemicals, food and real estate, saw its shares dip 20
centavos, or 4 percent, to MXN4.9 in recent trading, reports
Bloomberg. The value of the Company's shares dropped as investors
bet its fourth quarter earnings will fail to meet expectations.

Just recently, Laura Forte, an analyst with Salomon Smith Barney
Inc., revealed her expectations that Desc's revenue will fall 12
percent in the fourth quarter to $533 million from $609 million
in the same quarter last year as an economic slowdown in the U.S.
cuts into its sales.

CONTACTS:  DESC, S. A. DE C. V.
           Paseo de los Tamarindos # 400-B
           Mexico, D.F. 05120
           Phone: (5255) 261-80-00
           Fax: (5255) 261-80-96
           desc@mail.desc.com.mx

           Arturo D'Acosta Ruz, Chief Financial Officer
           Tel: (5255) 261 8000

           Alejandro de la Barreda, Investor Relations
           Tel: (5255) 261 8000 ext 2806
           abarredag@mail.desc.com.mx

           Adriana Estrada Vergara, Investor Relations
           Tel: (5255) 261 8000 ext 2846
           aestradav@mail.desc.com.mx


GRUPO MEXICO: Regulatory Concerns May Derail Carso Deal
-------------------------------------------------------
Regulatory concerns are likely to pose a problem in the recent
alliance between the world's third-largest copper producer Grupo
Mexico (G-Mex) and Mexican conglomerate Grupo Carso.

The two groups recently reached an agreement, under which G-Mex's
74%-owned rail subsidiary Ferromex (Grupo Ferroviario Mexicano)
will join forces with Carso's Ferrosur, controlled by
subsidiaries Sinca and Frisco.

However, the Communications and Transport ministry is likely to
raise issues concerning the rules surrounding the sale of
privatized companies.

Although the 3-year minimum holding period has past, there is
also a restriction on allowing any owner of a previously public
company from owning 5 percent of another previously public
company.

Sources at the Federal Competition Commission (CFC) said the deal
could run into anti-competition problems.

CONTACTS:  German Larrea Mota-Velasco, Chairman and CEO
           Avenida Baja California 200, Colonia Roma Sur
           06760 M,xico, D.F., Mexico
           Phone: +52-5-264-7775
           Fax: +52-5-264-7769

           C.P. Hector Garcia De Quevedo Topete, Corporate Dir.
           Av. Baja California No. 200, Colonia Roma Sur C.P.
           06760 MEXICO, D.F.
           Phone: 55-64-70 66 ext 7238
           Fax: 55-64-3714

           UNDERWRITER: ING BARRINGS
           Corporate communication and public relations:
           C.P. HECTOR GARCIA DE QUEVEDO TOPETE
           CORPORATE DIRECTOR
           AV. BAJA CALIFORNIA No. 200
           Colonia ROMA SUR C.P. 06760
           MEXICO, D.F.
           Tel: 55-64-70 66 ext 7238 Fax: 55-64-3714
           moram@gmexico.com.mx


HAYES LEMMERZ: Court Approves $200 MM DIP Financing Agreement
-------------------------------------------------------------
Hayes Lemmerz International, Inc. (OTC Bulletin Board: HLMMQ), a
leading global supplier of automotive and commercial highway
wheels, brakes, powertrain, suspension, structural and other
lightweight components, announced that it had received final
Court approval of the Company's $200 million debtor-in-possession
(DIP) financing agreement.

The DIP agreement calls for a group of the Company's lenders led
by CIBC World Markets Corp., to provide $200 million in post-
petition financing to Hayes Lemmerz to purchase goods and
services and fund the Company's ongoing operating needs during
its restructuring process.

"Combined with the positive cash flow from our business, the DIP
financing agreement will provide more than adequate financial
resources to fund our post-petition vendor and employee
obligations and other operating requirements as Hayes Lemmerz
moves forward in its restructuring," said Curtis Clawson,
chairman and chief executive officer. "With this financing in
place, and the support we have received from our vendors, the
Company is well positioned to continue meeting the needs of its
customers during the restructuring period and beyond."

On December 5, 2001, Hayes Lemmerz International, Inc., filed for
reorganization under Chapter 11 of the U.S. Bankruptcy Code, to
reduce its debt and strengthen their competitive position. Of the
total, 22 plants in the United States and one plant in Nuevo
Laredo, Mexico are included in the Chapter 11 filings.

Hayes Lemmerz International, Inc. is one of the world's leading
global suppliers of automotive and commercial highway wheels,
brakes, powertrain, suspension, structural and other lightweight
components. The Company has 41 facilities and two joint ventures
and 14,000 employees worldwide.

CONTACTS:  HAYES LEMMERZ INTERNATIONAL, INC.
           Marika Diamond
           Tel. +1-734-737-5162

           Corporate Contacts - General Information:
           Curtis Clawson, Chairman & CEO
           Hayes Lemmerz International
           15300 Centennial Drive
           Northville, MI 48167 USA
           Tel: 734.737.5000 | 800.521.0515
           Fax: 734.737.2003

           HAYES LEMMERZ (Brazil)
           Borlem S.A. Empreendimentos Industriais
           Rua Barao do Rio Branco, 20
           07042-010 Guarulhos, SP
           Brazil
           Phone 55.11.6421.1700
           Fax 55.11.6421.1834
           E-mail  borlem@hayes-lemmerz.com

           Public Relations:
           E-mail: pr@hayes-lemmerz.com
           TEL: 734.737.5162
           FAX: 734.737.2099

           Investor Relations:
           15300 Centennial Drive
           Northville, MI 48167 USA
           E-mail: investor_relations@hayes-lemmerz.com
           TEL: 734.737.5110
           FAX: 734.737.2003
           Email: ir@hayes-lemmerz.com

           Transfer Agent:
           ChaseMellon Shareholder Services L.L.C.
           85 Challenger Road
           Ridgefield Park, NJ 07660
           Tel. 1-888-261-6777

           Independent Accountants:
           KPMG Peat Marwick
           150 West Jefferson Ave.
           Suite 1200
           Detroit, MI 48226
           Telephone 1 (313) 983-0200
           Telefax 1 (313) 983-0008
           www.kpmg.com


MEXLUB: Pemex Officials Question Sale Process
---------------------------------------------
Authorities at Petroleos Mexicanos (Pemex), for the first time in
nine years, expressed skepticism on the transparency of the sale
process for its Mexican oil and lubricants company Mexicana de
Lubricantes (MexLub), Mexico City daily Reforma reveals.

A document issued by Pemex's corporate planning unit, now under
the consideration of Pemex head Raul Munoz, openly casts doubt as
to where MXN508.4 million ended up. This is the amount that the
group, represented by Salvador Martinez Garza, supposedly paid
for the business.

"How and by whom were (the funds) received? Where are the funds,
or what happened to them?" asks the document.

MexLub, in December last year, denied it was close to declaring
bankruptcy. The Company, despite cash flow problems at that time,
said it was capable of covering its debts since it still had some
MXN2.6 billion worth of assets.

The Company has MXN1 billion (US$109 million) in outstanding
debts, primarily to its chief creditor, the Banorte bank.

CONTACT:  Octavio S nchez Mejorada, Manager
          Av. 8 de Julio N 2270, Z.I.
          Guadalajara, Jal. 44940
          Phone: 31-34-05-00
          Fax: 31-34-05-00
          E-mail: export@mexlub.com.mx
          URL: http://www.mexlub.com.mx


VITRO: Salomon Ups Ratings To `Neutral' on Valuation Call
---------------------------------------------------------
Mexican glassmaker Vitro has had its rating upgraded by Salomon
Smith Barney from `underperform' to `neutral,' says Reuters.

Salomon is expecting Vitro to report fourth quarter operating
income of US$69 million, down 14 percent from the same period a
year earlier due to lower margins in all divisions. However, it
believes earnings per ADR would be boosted by foreign exchange
gains.

"We are upgrading the Vitro shares based on what we consider
cheap valuation," Salomon said in a report.


CONTACT:  Vitro S.A. de C.V.
          financial community:
          Gerardo Guajardo, 011 (52) 8329-1349
          gguajardo@vto.com
          Beatriz Martinez, 011 (52) 8329-1258
          bemartinez@vto.com
          or
          Vitro, S. A. de C.V.
          media: Albert Chico, 011 (52) 8329-1335
          achico@vto.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, Edem
Psamathe P. Alfeche and Fe Ong Vao, Editors.

Copyright 2002.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
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