/raid1/www/Hosts/bankrupt/TCRLA_Public/020211.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                   L A T I N   A M E R I C A

            Monday, February 11, 2002, Vol. 3, Issue 29

                           Headlines



A R G E N T I N A

EDEN/EDES: AES Backs Out Of Agreement To Purchase Stakes
METROGAS: Failure To Meet Debt Payments Prompts S&P Cuts
PSINET: Moves For Settlement With Global Crossing


B E R M U D A

GLOBAL CROSSING: Bermudian Winding-Up Defers to US Proceedings
GLOBAL CROSSING: Seeks Judge's Approval For Buyout Proposal
GLOBAL CROSSING: Lovell & Stewart Files Securities Fraud Suit
GLOBAL CROSSING: Berger & Montague, P.C. Sues Officers
GLOBAL CROSSING: Abbey Gardy, LLP Files Class Action Lawsuit


B R A Z I L

EMBRAER: Government Backs Air Force Bid for Mirage Jets
EMBRATEL: WorldCom 4Q, FY01 Results Include Embratel Write Down
TRANSBRASIL: Recently-Appointed Chairman Abandons Post


C O L O M B I A

WENCOL: Local Wendy's Franchise Owner Shuts Down Chain


M E X I C O

CINTRA: Aeromexico, Mexicana Conclude Debt-Restructuring
CINTRA: Ministry Cancels This Year's Planned Sale
GRUPO DINA: Int'l CofC To Decide On Truck Dispute In March
GRUPO SIDEK: Won't Sue Broker Due To High Legal Costs
MEXLUB: Pemex Cancels Contracts After Obligations Missed
VITRO: Shares Down On Expectations Of Dismal 4Q Results


T R I N I D A D   &   T O B A G O

BWIA: Workers Nervously Await Decision On Staff Reduction


     - - - - - - - - - -



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

EDEN/EDES: AES Backs Out Of Agreement To Purchase Stakes
--------------------------------------------------------
AES Corp. pulled out of a previous agreement to buy out minority
positions in five Argentine power businesses for $420 million,
according to Public Service Enterprise Group Inc. AES and Public
Service jointly own the businesses in question.

On August 24, AES agreed to buy Public Service's minority stakes
in three Argentine electric-distribution businesses and two power
plants, a transaction the companies initially valued at $376
million.

Among these companies are Empresa Distribuidora de Energia Norte
SA (Eden) and Empresa Distribuidora de Energia Sur SA (Edes).
However, Argentina's political turmoil has made the investments
seem too risky at this juncture, causing AES to back out of the
deal.

Public Service, in a filing with the U.S. Securities and Exchange
Commission, said it is disputing AES's grounds for reversing its
earlier plans.

Last month, EDEN and EDES had their local and foreign currency
ratings downgraded by Standard and Poor's (S&P) to `Selective
Default' (SD) on concern that they will have difficulty in
meeting some of their foreign currency obligations in a timely
manner due to sovereign-induced constraints.

Argentina's peso has fallen 51 percent this year, and the South
American country took other steps that hurt profit at AES's
businesses there, Chief Executive Officer Dennis Bakke told
analysts and investors this week. Argentina defaulted on its $141
billion debt in December, and has frozen most bank accounts.

CONTACTS:  AES Corp.
           Roger W. Sant, Chairman
           Dennis W. Bakke, President, CEO, and Director
           Barry J. Sharp, EVP Large Utilities, CFO, and COO

           THEIR ADDRESS:
           AES Corp.
           1001 N. 19th St.
           Arlington, VA 22209
           Phone: 703-522-1315
           Fax: 703-528-4510
           URL: http://www.aesc.com


METROGAS: Failure To Meet Debt Payments Prompts S&P Cuts
--------------------------------------------------------
Standard & Poor's (S&P) said Thursday that Argentina-based
Metrogas' selected default (SD) foreign currency rating already
reflects the Company's inability to meet interest payments due.
The company's current difficulties stem from transferability and
convertibility restrictions imposed by the government. As such,
Standard & Poor's rating action follows that of most Argentine
entities whose foreign currency ratings were placed on SD on
January 21.

Metrogas missed Thursday an interest payment for US$1.6 million
on its unrated, US$130 million floating rate notes. The missed
payment resulted from the still unclear rules regarding
transferability restrictions established by the government, and
the potential difficulties of obtaining U.S. dollars even at the
free exchange rates when the banking holiday established by the
government ends.

CONTACTS:  METROGAS
           Alberto Alfredo Alvarez, President
           William Harvey Adamson, First VP
           Gen. Director Enrique Barruti, HR Director
           Fernando Aceiro New Bus. Director
           Luis Domenech Admin. and Fin. Director

           Their Address:
           G. Araoz de Lamadrid 1360
           1267 Buenos Aires, Argentina
           Phone: (800) 422-2066
           Fax: (201) 262-2541
           Email: info@metrogas.com.ar


PSINET: Moves For Settlement With Global Crossing
-------------------------------------------------
As previously reported, Global Crossing and PSINet were in a
dispute over $2,033,577 for the first installment under a
Capacity Purchase Agreement (CPA) pursuant to which PSINet used
IRUs supplied by Global Crossing.  The parties were arguing over
the avoidability of the transfer in this amount in PSINet's
chapter 11 case and over matters related to the CPA including
rejection claims made by Global Crossing.

Pursuant to the CPA, PSINetworks initially purchased IRUs of
capacity on traffic connections between Los Angeles and Tokyo,
Los Angeles and Mexico City, and Los Angeles and Fort Amador,
Panama. PSINetworks fully paid the purchase price. PSINetworks
subsequently purchased an additional IRU of capacity on traffic
connections between New York and Amsterdam and also fully paid
the purchase price.

On September 28, 2000, PSINetworks, together with two of its
foreign affiliates, PSINet Argentina (PSINetworks, SSD S.A.) and
PSINet Brasil (PSINet do Brasil Ltda.) on the one hand, and
Global Crossing USA, Global Crossing Argentina and Global
Crossing Brazil on the other hand, entered into an additional
agreement under which PSINet purchased IRUs of capacity on
traffic connections between Buenos Aries and Miami, Buenos Aries
and Sao Paulo, and Buenos Aries and Rio de Janeiro (the Latin
American IRUs). PSINet Argentina and PSINet Brasil are non-Debtor
affiliates of PSINetworks organized under the laws of Argentina
and Brazil respectively. Pursuant to the September 28 Agreement,
PSINetworks agreed to pay the purchase price of $23 million for
the Latin American IRUs (of which $5.1 million was payable by
PSINet Argentina and $3.03 million was payable by PSINet Brazil)
in installments with an initial deposit of $2.3 million and
twelve quarterly payments of $2,033,577 falling due following
activation of the Latin American IRUs. PSINet fully paid the
deposit but not the installments. In April and May 2001, Global
Crossing issued payment default notices to PSINetworks with
respect to the initial Installment of $2,033,577.

                         May 31, 2001

May 31, 2001 was the eventful day: 12:00 noon was the time by
which Global Crossing expected payment of the $2,033,577 first
installment by PSINetworks or, according to a May 30, 2001
notice, Global Crossing would immediately suspend service on the
three circuits providing the Latin America Capacity. Global
Crossing did not receive the payment. At approximately 2:00 p.m.
(EST), Global Crossing shut down the circuits related to the
Latin American IRUs. At approximately 4:30 p.m. (EST), the Debtor
phoned Global and advised that funds in the amount of $2,033,577
had been wired to Global Crossing's account in an effort to
restore the circuits related to the Latin American IRUs. Later
that evening at approximately 7:00 p.m., PSINetworks and the
other Debtors petitioned for Chapter 11 relief.

Global Crossing restored service on the three circuits at issue
by 8:00 a.m. on June 1, 2001.

The Debtors assert that payment of the Initial Installment is
avoidable as a preference under Section 547 of the Bankruptcy
Code. Global Crossing disputes this claim and asserts, among
other things, that the Debtors agreed to refrain from pursuing
any avoidance action with respect to the Initial Installment by
way of a letter agreement of June 1, 2001 regarding the
restoration of service on the circuits related to the Latin
American IRUs.

The Debtor contends that, at the time it entered the June 1
Agreement, it believed that Global had "rejected" the money, and
that it could not comply with the June 1st Agreement unless and
until the money was returned.

In addition to the Initial Installment, PSINetworks and/or the
other Debtors made certain other payments, allegedly Preference
Period Payments, to Global Crossing for O&M Expenses and other
charges pursuant to the Capacity Agreement and certain other
agreements among PSINetworks and/or its affiliates and Global
Crossing USA and/or its affiliates.

On July 2, 2001, Global Crossing USA moved the Court for order to
compel assumption or rejection of the Capacity Agreement
(including the September 28 Agreement). The Debtors have
subsequently elected to reject the Capacity Agreement, the
September 28 Agreement and all IRUs granted in respect thereof,
effective as of December 28, 2001.

Global Crossing asserts, among others, rejection damage claims
against PSINetworks pursuant to the Capacity Agreement and the
September 28 Agreement in excess of $35 million for the remaining
Installments of the purchase price for the Latin American IRUs
and for unpaid O&M Expenses through the remaining terms
(generally 25 years) of all IRUs granted pursuant to the Capacity
Agreement and the September 28 Agreement. In addition, Global
Crossing asserts claims against PSINet Argentina in excess of $5
million and against PSINet Brazil in excess of $3 million for the
remaining Installments of the purchase price for the Latin
American IRUs.

Further, PSINetworks has incurred and/or will incur as of the
Rejection Effective Date O&M Expenses in an aggregate amount of
$818,628 (the Postpetition O&M Expenses) under the Capacity
Agreement and the September 28 Agreement during the postpetition
period for which it has not yet paid Global Crossing.

                  The Settlement Agreement

By way of a motion dated January 20, 2002, the Debtors seek
approval of a Settlement Agreement, dated as of January 18, 2002,
among PSINetworks Company, Global Crossing Bandwidth, Inc.,
Global Crossing USA Inc., Global Crossing Network Center Ltd.,
Global Crossing Telecommunications, Inc., GC SAC Argentina
S.R.L., and SAC Brasil Ltda., pursuant to Rule 9019 of the
Federal Rules of Bankruptcy Procedure.  Global Crossing's
bankruptcy case commenced on January 28, 2002.

The Agreement provides, among other things, that:

       -- Global Crossing will release PSINetworks from rejection
damage claims in excess of $35 million arising under a rejected
capacity purchase agreement, and the Debtors would release Global
Crossing from a preference claim of approximately $2 million and
pay Global Crossing approximately $0.8 million in satisfaction of
certain postpetition services provided by Global Crossing.

       -- Global Crossing will release PSINetworks, the other
Debtors, their estates, PSINet Argentina and PSINet Brazil from
all claims, including rejection damages, arising under the
Capacity Agreement, the September 28 Agreement and any IRU
purchased by PSINetworks pursuant to the Capacity Agreement or
the September 28 Agreement.

       -- In exchange, PSINetworks, the other Debtors, their
estates, predecessors, successors in interest and assigns, and
any and all other entities claiming by or through the Debtors or
any of their respective estates, would release Global Crossing
from any claims relating to the Initial Installment, including
any right to avoid or recover payment of the Initial Installment,
including without limitation an avoidance action under Section
547 or any other provision of the Bankruptcy Code.

       -- In addition, PSINetworks would pay Global Crossing the
Postpetition O&M Expenses within 15 days after an order approving
the Agreement has become final.

       -- PSINetworks and the other Debtors would not release
Global Crossing from any avoidance action the Debtors may have
under Chapter 5 of the Bankruptcy Code with respect to the
Preference Period Payments, including any right to avoid or
recover the Preference Period Payments under Section 547, 550 or
any other provision of the Bankruptcy Code.

       -- Global Crossing would retain all rights to assert any
defense otherwise available to it with respect to the Avoidance
Actions, as well as any and all other prepetition or postpetition
claims it may have against the Debtors that are not otherwise
released under the Agreement.

The Debtors believe that the Agreement is fair and reasonable,
and represents the most efficient resolution of the claims
between the parties, and is in the best interests of the PSINet
creditors and estates.  The Committee, the Debtors understand,
supports the Agreement.

Accordingly, the Debtors request approval of the Agreement among
PSINetworks and Global Crossing. (PSINet Bankruptcy News, Issue
No. 14; Bankruptcy Creditors' Service, Inc., 609/392-0900)



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

GLOBAL CROSSING: Bermudian Winding-Up Defers to US Proceedings
--------------------------------------------------------------
Harvey R. Miller, Esq., at Weil, Gotshal & Manges, LLP explains
that on January 28, 2002, in furtherance of Global Crossing's
chapter 11 restructuring, each Debtor entity that is incorporated
in Bermuda will also commence a proceeding in the Supreme Court
of Bermuda known under Bermudian Law as a "winding up"
proceeding.

Rather than working at cross purposes with the efforts in these
chapter 11 cases, the Bermuda Group will request that deference
be paid in the "winding up" to the jurisdiction of the U.S.
Bankruptcy Court and the Debtors' restructuring efforts in
accordance with the provisions of chapter 11 of the Bankruptcy
Code.  The Bermudian Group will specifically request that the
Supreme Court of Bermuda empower and direct Joint Provisional
Liquidators:

     (A) to effectuate relief granted by Judge Gerber in the
         U.S. Cases,

     (B) to oversee the continuation of Global Crossing under
         the control of its Board of Directors and under the
         supervision of the Bermuda Supreme Court and the U.S.
         Court,

     (C) to liaise with Global Crossing's Board of Directors in
         effecting a plan of reorganization under the Bankruptcy
         Code and under the supervision of the Bermuda Supreme
         Court and this Court in connection with the chapter 11
         Cases, and

     (D) to hire and compensate professionals, as needed.

The Bermuda Group will petition the Supreme Court of Bermuda to
issue an order appointing certain principals of KPMG
International as Joint Provisional Liquidators of the Bermuda
Group. (Global Crossing Bankruptcy News, Issue No. 1, Bankruptcy
Creditors' Service, Inc., 609/392-0900)


GLOBAL CROSSING: Seeks Judge's Approval For Buyout Proposal
-----------------------------------------------------------
Global Crossing Ltd. has asked a bankruptcy judge to approve a
buyout proposal made by two Asian conglomerates last week, the
Associated Press reports.

Early last week, Hutchison Whampoa Limited and Singapore
Technologies Telemedia Pte. Ltd. agreed to invest US$750 million
for a 79 percent stake in Global Crossing. The agreement entails
wiping out the firm's $12.4 billion of debt and leaves Global
Crossing's new owners with US$700 million in the Company's
coffers.

Under terms of the agreement, creditors would receive the
remaining 21 percent equity of the firm, US$300 million in cash
and US$800 million in notes in exchange for forgiving the
Company's debt. Existing shareholders would receive nothing.

As part of the terms of the agreement, Global Crossing has agreed
to have at least US$1 billion of working capital on hand (cash
plus receivables minus payables) including a minimum of US$700
million in cash as of September 30, 2002. The Company says it has
more than US$600 million in cash today.

Some investors, however, have expressed concern that the Company
is filing for bankruptcy protection with too much cash on hand.

"Having that kind of cash on hand is very unusual for a Company
seeking Chapter 11," agreed John Hansen, a bankruptcy lawyer,
with Nossaman, Guthner Knox Elliot LLP in San Francisco. However,
in Global Crossing's case, the cash may be necessary to support
the Company until demand for its fiber capacity increases, he
said. Nevertheless, the huge sum raises some questions, he added.

Although Global Crossing has agreed to the buyout with Hutchison
and SST, the firm said in court papers that it has also retained
New York's Blackstone Group to seek other bids.

Global Crossing and certain of its affiliates in late January
commenced Chapter 11 cases in the United States Bankruptcy Court
for the Southern District of New York and coordinated proceedings
in the Supreme Court of Bermuda.

For more info about the Company's bankruptcy filing:
http://bankrupt.com/misc/Global_Crossing1.txt
http://bankrupt.com/misc/Global_Crossing2.pdf

CONTACT:  GLOBAL CROSSING
          Press Contacts: Dan Coulter, 973/410-5810
          Daniel.coulter@globalcrossing.com

          Press Contact
          Becky Yeamans
          +1 973-410-5857
          rebecca.yeamans@globalcrossing.com

          Analysts/Investors Contact
          Ken Simril
          +1 310-385-5200
          investors@globalcrossing.com


GLOBAL CROSSING: Lovell & Stewart Files Securities Fraud Suit
-------------------------------------------------------------
The law firm of Lovell & Stewart, LLP filed a class action
lawsuit on February 7, 2002 on behalf of all persons who acquired
the common stock of Global Crossing Ltd. (NYSE:GX) between August
13, 1998 and February 6, 2002, inclusive.

The lawsuit asserts claims under Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934 and Rule 10b-5 promulgated by the
SEC thereunder and seeks to recover damages. Any member of the
class may move the Court to be named lead plaintiff. Anyone
wishing to serve as lead plaintiff, must move the Court no later
than April 6, 2002.

The action, Agarwal v. Winnick, et al., is pending in the U.S.
District Court for the Southern District of New York (500 Pearl
Street, New York, New York), Docket No. 02-CV-0990 (AGS) and has
been assigned to the Hon. Allen G. Schwartz, U.S. District Judge.

The complaint alleges that certain current and former officers
and directors of Global Crossing violated the federal securities
laws by failing to disclose that Global Crossing's earnings were
artificially inflated by the inclusion in revenues of sums not
actually received in cash, or counting as revenues exchanges of
bandwidth capacity with other communications companies, booking
"up front" revenue from twenty-year contracts known as
indefeasible rights of use or "IRUs" even though Global Crossing
had deceptively entered into offsetting contracts for rights of
use, misleadingly accounting for purchases of capacity from other
companies that effectively offset the above-mentioned "IRUs" as
capital expenditures, thereby artificially lowering Global
Crossing's operating expenses, and failing to disclose that
Global Crossing's artificially inflated earnings were part of a
course of conduct calculated to enable top management to cash out
of their own positions in Global Crossing stock at artificially
inflated prices.

The complaint further alleges that Global Crossing's auditors,
Arthur Andersen LLP, violated the federal securities laws by
issuing unqualified audit opinions on Global Crossing's revenues
and earnings reports that Andersen knew or recklessly failed to
discover were false and misleading.

The complaint alleges that the foregoing misstatements and
omissions of material facts in violation of the federal
securities laws had the effect of artificially inflating Global
Crossing's share price. Global Crossing's stock traded as high as
$23.75 in 2001, but closed at $0.30 on February 6, 2002 after the
truth concerning Global Crossing's misleading IRU accounting
became known to the market. Before the market for Global Crossing
stock collapsed, however, Global Crossing insiders managed to
sell over $1.3 billion of their own Global Crossing stock at
artificially inflated prices.

Christopher Lovell, the senior partner at Lovell & Stewart, has
been appointed lead counsel or co-lead counsel in numerous
significant class actions, including actions involving reportedly
the largest class action recoveries in history under three
separate federal statutes (the Sherman Antitrust Act, the
Commodity Exchange Act, and the Investment Company Act of 1940).
Recoveries for class plaintiffs included the $1.027 billion
recovery in In re: NASDAQ Market-Makers Antitrust Litigation and
a $145.35 million recovery in 1999 in In re: Sumitomo Copper
Litigation, a class action against various parties who conspired
to manipulate the worldwide copper and copper futures markets for
their own profit.

Investors who acquired Global Crossing common stock during the
period August 13, 1998 through February 6, 2002, inclusive may
contact Lovell & Stewart at the telephone number, address or E-
mail address below for more information regarding the class
action lawsuit. Investors can also visit Lovell & Stewart's
website at www.lovellstewart.com to view a copy of the complaint.

CONTACT: Lovell & Stewart, LLP, New York
         Christopher Lovell or Christopher J. Gray
         212/608-1900
         sklovell@aol.com


GLOBAL CROSSING: Berger & Montague, P.C. Sues Officers
------------------------------------------------------
Berger & Montague, P.C., filed a class action against certain of
the officers and directors of Global Crossing, Ltd. (NYSE: GX) in
the United States District Court for the Central District of
California, on behalf of all persons or entities who purchased
Global Crossing, Ltd. common stock during the period from January
2, 2001 through October 4, 2001.

The Complaint charges certain of the officers and directors of
Global Crossing with violations of Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934 and Rule 10b-5 promulgated
thereunder by the Securities and Exchange Commission. The
complaint alleges that during the Class Period, defendants issued
false and misleading statements and press releases concerning
Global Crossing's financial statements, their ability to offset
declining wholesale demand for bandwith capacity with higher-
margin, customized data services and the Company's ability to
generate sufficient cash revenue to service its debt. During the
Class Period, before the disclosure of the true facts, the
Individual Defendants and certain Global Crossing insiders sold
their personally held Global Crossing common stock generating
more than $149 million in proceeds and the Company raised $1
billion in an offering of senior notes.

However, the full extent of Global Crossing's cash flow crisis
and its failure to compete in the market for customized
communications services began to emerge on Oct 4, 2001. On that
date, the Company announced that: cash revenues in the third
quarter would be approximately $1.2 billion, $400 million less
than the $1.6 million expected by a consensus of analysts
surveyed by Thomson Financial/First Call. The cash revenue
shortfall was purportedly the result of a "sharp falloff" in
wholesale IRU sales to carrier customers. The Company further
announced that it expected recurring adjusted EBITDA to be
"significantly less than $100 million," compared to forecasts of
$400 million. Following these announcements, Global Crossing's
share price plunged by 49% to $1.07 per share.

Plaintiff seeks to recover damages on behalf of all purchasers of
Global Crossing common stock during the Class Period (the
"Class"). The plaintiff is represented by Berger & Montague, P.C.
which has expertise in prosecuting investor class actions and
extensive experience in actions involving financial fraud.

For more information, contact:

       Sherrie R. Savett, Esquire
       Barbara A. Podell, Esquire
       Kimberly A. Walker, Investor Relations Manager
       Berger & Montague, P.C.
       1622 Locust Street
       Philadelphia, PA 19103
       Telephone: (888) 891-2289 or (215) 875-3000
       Fax: (215) 875-5715
       Website: www.bergermontague.com
       e-mail: InvestorProtect@bm.net


GLOBAL CROSSING: Abbey Gardy, LLP Files Class Action Lawsuit
------------------------------------------------------------
Abbey Gardy, LLP, filed a securities class action lawsuit on
February 6, 2002 on behalf of all person who acquired common
stock of Global Crossing, LTD. (NYSE:GX) (OTCBB:GBLXQ) between
April 28, 1999 and October 4, 2001, inclusive (the "Class
Period").

The complaint alleges that certain of Global's officers and
directors violated the Securities Exchange Act of 1934. The
complaint charges that during the Class Period, defendants issued
false and misleading statements, press releases and SEC filings
concerning Global's financial condition, as well as the Company's
ability to generate sufficient Cash Revenue from new revenue
sources considering the failing market for broadband access.
Prior to the disclosure of Global's true financial condition, the
Individual Defendants and other Global insiders sold holdings of
Global's common stock for proceeds of more than $149 million. In
addition, during the class period defendants caused the Company
to sell notes on favorable terms to itself which generated $1
billion in investor capital.

On Oct. 4, 2001 Global announced that Cash Revenues in the third
quarter would be approximately $1.2 billion, $400 million less
than the $1.6 billion expected by analysts and forecast several
times earlier in the year by defendants. In addition, Global and
the defendants stated that they expected recurring adjusted
EBITDA to be "significantly less than $100 million" compared to
forecasts of $400 million made several times earlier in the year.
Following this series of announcements, Global's share priced
plummeted nearly 50% to $1.07 per share on extremely heavy
trading volume. Subsequently, with its stock trading at well
under a dollar per share of common stock, Global filed for
Chapter 11 Bankruptcy protection on January 28, 2002 after
becoming unable to service its debt.

Direct questions concerning this Notice or rights as a potential
class member or lead plaintiff, to Nancy Kaboolian, Esq. or
Jennifer Haas of Abbey Gardy, LLP at (800) 889-3701 or email
JHaas@abbeygardy.com.

CONTACT:  Abbey Gardy, LLP, New York
          Jennifer Haas
          Nancy Kaboolian, Esq.
          (800) 889-3701
          Jhass@abbeygardy.com



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B R A Z I L
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EMBRAER: Government Backs Air Force Bid for Mirage Jets
-------------------------------------------------------
A majority of the 400 Brazilian federal deputies favor the
Brazilian Air Force's plans to buy its new Mirage jet fighters
directly from Embraer. Doing so would obviate the customary
competitive bidding process with other foreign companies, reports
O Estado de Sao Paulo.

Although the competition for the contract is already underway,
the deputies want to change the process, arguing that giving the
contract to Embraer will support the country's flagship company
and help maintain jobs.

Embraer and five other groups are vying for a contract from
Brazil's air force to revamp its aging fleet of fighter jets with
the purchase of 24 new planes for up to US$700 million. Embraer,
together with France's Dassault Aviation SA, who is also an
Embraer stakeholder, have proposed to build Dassault's Mirage
fighter jets at Embraer's factories in Brazil if they win the
deal.

Embraer is the world's fourth-largest civil aircraft manufacturer
and Brazil's top exporter.

CONTACTS:  EMBRAER
           Bob Sharp, Press office mgr.
           bob.sharp@embraer.com.br
           OR
           Wagner Gonzalez, Press officer
           wagner.gonzalez@embraer.com.br
           Phone +55 12 3945 1311
           Fax + 55 12 3945 2411


EMBRATEL: WorldCom 4Q, FY01 Results Include Embratel Write Down
---------------------------------------------------------------
In an official company news release, WorldCom, Inc. announced
Thursday the financial results of the WorldCom group
(NASDAQ:WCOM) for the quarter and year ended December 31, 2001.

FOURTH QUARTER 2001 WORLDCOM GROUP RESULTS

WorldCom group generated fourth quarter 2001 revenues of $5.3
billion representing 7 percent growth from the fourth quarter of
2000. Revenues from international operations grew 23 percent
year-over-year to $768 million, data and Internet revenues grew
13 percent to just under $3 billion, and voice revenues declined
8 percent from the year-ago period to $1.6 billion.

WorldCom group cash earnings (earnings before goodwill
amortization) were $595 million, or 20 cents per share. WorldCom
group net income was $384 million or 13 cents per share in the
quarter.

WORLDCOM GROUP BALANCE SHEET HIGHLIGHTS

During the quarter, WorldCom group debt declined by nearly $1
billion to $24.7 billion. The group had strong working capital
results. Net accounts receivable declined by $277 million during
the quarter and days sales outstanding declined by two days to 65
days from the third quarter.

During the fourth quarter, WorldCom group broke even on free cash
flow (cash provided by operating activities less cash used in
investing activities) excluding a $200 million prepayment to one
of the Company's largest network equipment suppliers.

FULL-YEAR 2001 WORLDCOM GROUP RESULTS

WorldCom group full-year 2001 revenues were $21.3 billion, an
increase of 11 percent from the $19.2 billion of revenues
reported in 2000.

The WorldCom group reported cash earnings of $3.0 billion or
$1.01 per share for the year. WorldCom group net income was $2.1
billion or 70 cents per share.

MANAGEMENT'S COMMENTS

"In a year filled with unexpected challenges and tough market
conditions, WorldCom maintained its market-leading position in
key growth areas of our industry - data, Internet and
international," said Bernard J. Ebbers, WorldCom president and
CEO. "Moving into 2002 WorldCom is a company with a strong
balance sheet, positive free cash flow, a fully integrated local
to global network leveraged by a sales force aligned to deliver
the products and services our customers are demanding today and
prepared for where demand will take customers in the future. I am
more confident than ever that WorldCom is well positioned in
today's environment, as well as when economic growth returns."

WORLDCOM GROUP MANAGEMENT'S OUTLOOK

The following outlook contains forward-looking statements that
are based on WorldCom group management's best judgment at this
time. Actual results could differ materially and are subject to
various risks and uncertainties, many of which, such as economic
factors, market demand and competitive pressures, are beyond the
Company's control.

Currently, WorldCom group expects mid single digit percentage
full-year 2002 revenue and EBITDA (earnings before interest,
taxes, depreciation and amortization) growth. WorldCom group's
2002 earnings are expected to be between 75 and 80 cents per
share. Full-year 2002 WorldCom group capital expenditures are
expected to be between $5.0 and $5.5 billion.

ADOPTION OF FAS 142

WorldCom, Inc. has engaged an independent appraisal firm to
conduct impairment reviews of the Company's intangible assets
with indefinite useful lives as required by FAS 142. At this
time, the Company expects to complete this assessment in the
second quarter of 2002 and estimates that as a result of the
adoption of FAS 142 it will reduce goodwill by $15 to $20
billion, including Intermedia goodwill reductions. Approximately
$1 billion of the reduction is expected to be at the MCI group.

CONSOLIDATED WORLDCOM, INC. RESULTS

Fourth quarter 2001 consolidated revenues were $8.5 billion.
Fourth quarter 2001 WorldCom, Inc. cash earnings were $570
million. Consolidated net income applicable to common
shareholders was $295 million.

During the fourth quarter, WorldCom, Inc. generated a total of
$169 million of free cash flow excluding a $200 million
prepayment to one of the Company's largest network equipment
suppliers.

Full-year consolidated WorldCom, Inc. revenues were $35.2
billion, a decrease of one percent from $35.6 billion in 2000.
Full-year 2001 cash earnings were $3.3 billion. Consolidated net
income applicable to common shareholders was $2.1 billion.


DISCUSSION OF NON-RECURRING ITEMS

WorldCom's reported results for the quarters and years ended
December 31, 2001 and 2000 have been impacted by events as
described more fully below. For comparative purposes, the
discussion of results excludes these non-recurring items.

1) Deconsolidation of Embratel: In the second quarter of 2001,
WorldCom made a strategic decision to restructure its investment
in Embratel (allocated to the WorldCom group). As a result of
actions taken in the second quarter of 2001, the accounting
principles generally accepted in the United States prohibit the
continued consolidation of Embratel's results. Accordingly,
WorldCom's equity in Embratel's earnings for all periods is now
reported in miscellaneous income.

2) Investments in certain publicly traded and privately held
companies: As a result of events which occurred during the second
quarter of 2001, WorldCom recorded after-tax charges of $528
million ($457 million at WorldCom group and $71 million at MCI
group) in the second quarter of 2001, related to the write-off of
investments in certain publicly traded and privately held
companies.

3) Costs associated with tracking stock recapitalization: In the
second quarter of 2001, WorldCom recorded an after-tax charge of
$14 million ($7 million at WorldCom group and $7 million at MCI
group) as a result of the costs associated with the tracking
stock recapitalization.

4) Costs associated with workforce reductions: In the first
quarter of 2001, WorldCom recognized after-tax charges of $76
million ($47 million at WorldCom group and $29 million at MCI
group) associated with domestic severance packages and other
costs related to WorldCom's February 2001 workforce reductions.
In the fourth quarter of 2001, WorldCom recognized after-tax
charges of $50 million (at the WorldCom group) associated with
international severance packages and other costs related to
WorldCom's fourth quarter 2001 international workforce
reductions.

5) Impact of Embratel write-down: In the fourth quarter of 2001,
WorldCom incurred after-tax charges of $29 million (at the
WorldCom group) associated with WorldCom's proportionate share of
a receivables write-down at Embratel.

6) Impact of foreign currency exchange: In the first quarter of
2001, WorldCom incurred after-tax charges of $59 million (at the
WorldCom group) associated with the impact of foreign currency
exchange on Embratel.

7) Cumulative effect of accounting change: During the fourth
quarter of 2000, WorldCom implemented SAB 101, which requires
certain activation and installation fee revenues to be amortized
over the average life of the related service rather than be
recognized immediately. Costs directly related to these revenues
may also be deferred and amortized over the customer contract
life. As required by SAB 101, WorldCom retroactively adopted this
accounting effective January 1, 2000, which resulted in a one-
time, after-tax expense of $85 million ($75 million at WorldCom
group and $10 million at MCI group).

8) Sprint Merger costs: In the second quarter of 2000, WorldCom
recorded a $55 million after-tax charge (allocated to the
WorldCom group) associated with the termination of the Sprint
merger agreement, including regulatory, legal, accounting and
investment banking fees and other costs.

9) Charge in third quarter of 2000: In the third quarter of 2000,
WorldCom recorded an after-tax charge of $405 million ($197
million at WorldCom group and $208 million at MCI group)
associated with specific domestic and international wholesale
accounts that were no longer deemed collectible due to
bankruptcies, litigation and settlements of contractual disputes
that occurred in the third quarter of 2000.


OFF BALANCE SHEET FINANCING

As previously disclosed in the Company's 10-Q and 10-K filings,
since 1995, the Company has used a receivables purchase program
as a means of obtaining interest rates that are more favorable
than other forms of commercial bank debt financing. At December
31, 2001, there was a balance of approximately $2 billion
outstanding under this program. The size of this program has
increased by less than $50 million in the last two years and has
had virtually no change in the last year.

Other than operating leases incurred in the normal course of
business, WorldCom has no off balance sheet financings. WorldCom
has no special purpose entities.

LIQUIDITY

As of December 31, 2001, WorldCom has approximately $10 billion
of available liquidity including $1.4 billion of cash and cash
equivalents and $8 billion of unused bank lines of credit and
commercial paper availability. WorldCom currently has no
commercial paper or bank borrowings. We anticipate that free cash
flow will exceed $1 billion in 2002 while scheduled debt
maturities are $172 million. Scheduled debt maturities are $1.7
billion in 2003, $2.6 billion in 2004, $2.3 billion in 2005, $2.6
billion in 2006 and $1.1 billion in 2007. WorldCom will continue
to retire debt when economically prudent.

CAPITALIZED INTEREST

WorldCom constructs certain of its own transmission systems and
related facilities. Interest costs associated with the
construction of such assets are capitalized until the
construction is substantially complete and the asset is ready to
be placed into service.

SG&A ALLOCATION BETWEEN WORLDCOM AND MCI GROUPS

The Company directly charges specifically identifiable expenses
to WorldCom group and MCI group. Shared corporate services costs,
which cannot be identified based on specific usage by a group,
are allocated based on revenues, headcount or line costs. The
allocation methods used to allocate shared corporate services
have been consistently applied in all periods. For instance,
shared Operations and Technology expenses, which comprise more
than 60 percent of shared corporate services, are allocated
proportionally based on total line costs.

BANKRUPTCIES

Global Crossing: WorldCom has less than $10 million in
receivables from Global Crossing. We do not anticipate any
material negative operational impact from the bankruptcy
proceeding or its outcome.

Enron: WorldCom wrote off less than $1.5 million of receivables
from Enron in the fourth quarter. There is no other known
exposure remaining with respect to the Enron bankruptcy.

The Company does not believe that it has material exposure to any
individual emerging carrier.

To see Worldcom's financial statements:
http://bankrupt.com/misc/Worldcom.doc

CONTACT:  WorldCom, Inc.
          News Media: Brad Burns, 800/644-NEWS
          or
          Investors: Scott Hamilton, 877/624-9266


TRANSBRASIL: Recently-Appointed Chairman Abandons Post
------------------------------------------------------
Michael Tuma Ness decided to leave the chairmanship of
Transbrasil a few days after his appointment by the Company's
board of directors.

Ness attributed his move to the fact that the Company failed to
fulfill its promise made in a shareholders meeting at the
beginning of the month to pay back salaries to 1,200 employees.
Transbrasil still owes employees between BRL8 million and BRL10
million.

Ness said he would reconsider the nomination for chairman if the
salaries were paid. Furthermore, Ness said that he had not been
informed of the source of the US$25 million in capital to be
injected into the Company by unknown interests.

Afonso Coelho remains at the head of the Company's administration
and will be responsible for negotiations with the as-yet unknown
investors.

CONTACT:  Antonio Celso Cipriani, CFO
          Rua Geral Pantaleao Telles, No. 4,
          Jardim Aeroporto
          04355-040 Sao Paulo, Brazil
          Phone: +55-11-533-7111
          Fax: +55-11-543-9083



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

WENCOL: Local Wendy's Franchise Owner Shuts Down Chain
------------------------------------------------------
Colombian franchise holder Wencol decided to close down the local
operations of fast-food chain Wendy's, reports Portafolio.
The decision was taken based on economic recession and the
difficulty in obtaining quality suppliers locally.

Wencol reportedly invested COP3 billion in the U.S.-based chain
in three years since its inauguration in the country in 1998. But
in 2000, it posted losses of COP690 million.

Upon its inauguration, Wendy's planned to have 24 stores opened
by 2004.

CONTRACTS:  Jack Schuessler, Chairman & CEO
            Kerrii B. Anderson, CFO & Executive VP
            John D. Barker, VP, Investor Relations and
                            Financial Communications
            Email: john_barker@wendys.com

            THEIR ADDRESS:
            WENDY'S and Wencol S.A. (Franchisee in Colombia)
            Wendy's International, Inc.
            4288 W. Dublin-Granville Rd
            Dublin, Ohio 43017
            Phone: (614) 764-3044
            Fax: (614) 764-3330

            STOCK TRANSFER AGENT:
            American Stock Transfer & Trust Company
            Attn: Shareholder Services
            59 Maiden Lane
            New York, NY 10038
            Phone: 1 -800-937-5449
            http://www.amstock.com

            WENCOL S.A. (FRANCHISEE IN COLOMBIA)
            Contacts: Antonio and Eduardo Robayo Ferro, Owners



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

CINTRA: Aeromexico, Mexicana Conclude Debt-Restructuring
--------------------------------------------------------
Mexico's Cintra, the holding company that controls AeroMexico and
Mexicana airlines, said on Wednesday that both carriers have
successfully concluded debt-restructuring deals allowing them to
continue operating normally.

Cintra sources revealed that Aeromexico reached an agreement with
its creditors to extend the maturity of a US$50-million debt from
this year to 2006.

Part of the debt is based on U.S. accounts receivable, and the
new agreement modifies the requirements of the deal to be more in
line with the world industry's current situation.

BBVA-Bancomer brokerage analyst Carlos Perez Alonso said the
agreement was important not only for the airline but also for the
federal government, because a company scheduled to be privatized
can't afford to fall into financial problems.

Mexicana, on the other hand, also restructured their debts
associated with a program to securitize accounts receivable in
the United States.

Mexicana CEO Fernando Flores announced that his company decided
to prepay US$36 million that it had as the balance from the
program.

This was possible through credit for pesos equivalent to US$100
million with Banco Inbursa, with a five-year term and two years
grace, said Flores.

The interest rate on the new credit is very competitive, and
lower than the rate that Mexicana had on its dollar debt, he
said.

The arrangement terminates the company's debt related to its U.S.
accounts receivable, once again freeing up the airline's U.S.
revenues, he said.

Aeromexico's and Mexicana's recent dealings affirm that neither
company has missed debt payments, as earlier reported by some
media sources.

CONTACT:  AEROMEXICO
          Mayte Sera Weitzman of AeroMexico, +1-713-744-8446, or
          mweitzman@aeromexico.com

          MEXICANA DE AVIACION
          Jenny Jenks, Marketing Director, International
          Division of Mexicana Airlines, +1-210-491-9764, or
          ennyjenks@mexicana.com


CINTRA: Ministry Cancels This Year's Planned Sale
-------------------------------------------------
Aaron Dychter, a senior official at the Communications and
Transport Ministry (SCT) said that the ministry has abandoned
plans to sell airline holding company Cintra this year,
considering the fact that the world aviation industry continues
to struggle following the September 11 events.

"We aren't going to go out and sell it if conditions are
inadequate. We won't undersell it. It will depend on how the
economic indicators evolve," he said.

However, according to Dychter, it's still necessary to discuss
plans to sell the Company in order to be ready when ideal market
conditions present themselves. Cintra's sale will depend on
Mexico's economic condition, he added.

Cintra-owned airlines AeroMexico and Mexicana were brought under
government control during a severe economic crisis sparked by the
botched devaluation of the peso currency in late 1994.

Both have been hit in recent months by an economic slowdown and
the drop in passenger numbers that followed the Sept. 11 attacks
on the United States.

CONTACTS:  Jaime Corredor Esnaola, Chairman
           Juan Dez-Canedo Ruiz, CEO
           Rodrigo Ocejo Rojo, CFO

           Xola 535, Piso 16, Col. del Valle
           03100 M,xico, D.F., Mexico
           Phone: +52-5-448-8050
           Fax: +52-5-448-8055

           OR
           C.P. Francisco Cuevas Feliu, Investor Relations
           Xola 535, Piso 16
           Col. del Valle
           03100 M,xico, D.F.
           Tel. (52) 5 448 80 50
           Fax (52) 5 448 80 55
           infocintra@cintra.com.mx


GRUPO DINA: Int'l CofC To Decide On Truck Dispute In March
-------------------------------------------------------------
Paris-based International Chamber of Commerce is expected to
announce next month its verdict in the dispute between the near-
bankrupt Mexican truck manufacturer Grupo Dina and Canadian-based
Western Star Trucks.

Last year, Grupo Dina presented before the International Chamber
of Commerce a claim of US$123.161 million against Western Star
Trucks for unilaterally canceling a contract to buy 9,000 trucks,
an agreement valued at close to US$200 million.

The cancellation precipitated Dina's financial problems over the
following months, eventually leading to the closure of Dina's
Camiones plant in Sahagun, Hidalgo, said Dina Legal Director
Mauricio G. Mendoza Silva.

A victory for Dina's in the dispute would help it emerge from the
economic crisis caused by the cancellation.


GRUPO SIDEK: Won't Sue Broker Due To High Legal Costs
-----------------------------------------------------
Grupo Sidek, headed by Luis Rebollar, will not take legal action
against broker Hodges Ward Elliott due to the high legal costs of
litigation in the United States, according to a report released
by Mexico City daily Reforma.

Sidek hired Hodges Ward Elliott, which is represented by Dana
Ciraldo, to sell the eight Situr hotels that eventually led to
the exchange of legal suits between the Company and AMX Resorts
Holdings.

Instead, Sidek's legal team, headed by Jaime Guerra, will
concentrate on the dispute with Steadfast and its top executive
Rodney F. Emery.

CONTACT:  GRUPO SIDEK
          Arturo Perez Courtade, Legal Director
          Alejandro Giordano Trejo, Deputy Director
          Tel. +523-678-5911/
          Web site:  http://www.sidek.com.mx

          HODGES WARD ELLIOTT, INC.
          Contact: Dana Michael Ciraldo, Sr. Vice Pres.
          The Lenox Building
          3399 Peachtree Road NE, 12th Floor
          Atlanta, Georgia 30326
          404.238.0924
          404.238.0926 fax
          www.hwehotels.com


MEXLUB: Pemex Cancels Contracts After Obligations Missed
--------------------------------------------------------
Petroleos Mexicanos' (Pemex) board of directors decided to cancel
three contracts with Mexicana de Lubricantes (MexLub) as part of
an effort to end its relationships with companies it deemed as
"unproductive," reports Mexico City daily Reforma.

The contracts were cancelled based on the fact that MexLub failed
to meet various contractual obligations

The board also sees its decision as preventing the further
deterioration of brands owned by Pemex that were licensed to
MexLub, and to encourage free competition in the market of oils
and lubricants.

Pemex Refinacion CEO Armando Leal Santa Ana sent MexLub legal
representative Salvador Martinez Garza a document canceling
contracts for the license to use brands, and the supply of basic
oils, and other products.

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: Shares Down On Expectations Of Dismal 4Q Results
-------------------------------------------------------
Vitro, Mexico's largest glassmaker, fell Thursday for a fifth
day, plunging MXN0.28, or 3.7 percent, to MXN7.32, reports
Bloomberg.

Expectations of bad fourth-quarter results pulled down the value
of the Company's shares, according to Marco Reyes, an analyst
with Scotiabank Inverlat SA in Mexico City.

"After all the other conglomerates reported weak results, I don't
think Vitro will be an exception," said Reyes.

Just recently, the Company's rating was upgraded by Salomon
Smith Barney from `underperform' to `neutral.' Although Salomon
was expecting Vitro to report fourth quarter operating income of
US$69 million, down 14 percent from the same period a year
earlier, 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 had said in a report. Vitro is expected
to report earnings later this month.

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



=================================
T R I N I D A D   &   T O B A G O
=================================

BWIA: Workers Nervously Await Decision On Staff Reduction
---------------------------------------------------------
Workers at Trinidad national airline BWIA are flying under
pressure as they wait to see how much longer they can keep their
jobs, according to a report released by The Trinidad Guardian.

"There is no way you can give superior customer service and
Caribbean warmth when the Company is looking to send people home
without justification. My family is concerned. My kids are
worried," said an employee of the airline who asked not to be
identified.

Already, pilots and flight attendants are flying under the
pressure of the possibility of aviation terrorism. The
restructuring exercise has only added to that pressure.

However, Conrad Aleong, BWIA chief executive officer, has
insisted the airline will continue to be safe, secure and
friendly despite the continuing cost cutting exercise.

But the waiting game now being played out is having an impact on
the peace of mind of those who are tasked with getting safely and
comfortably through the air.

Flight attendants, pilots, maintenance workers, office staff are
all waiting to see where the restructuring axe will fall.

The exact number of workers to be fired has yet to be determined,
but Aleong had said he was certain employees have to go if the
airline is to avoid losing an estimated US$30 million in revenue
during the next financial year.

"Even the management is under consideration," said Clint
Williams, BWIA director - corporate communications. Some BWIA
employees expressed job security concerns before the
restructuring exercise was announced by Aleong several weeks ago.



               ***********


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 Va¤o, Editors.

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
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Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
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