/raid1/www/Hosts/bankrupt/TCRLA_Public/020214.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, February 14, 2002, Vol. 3, Issue 32

                           Headlines


A R G E N T I N A

AUTOPISTAS DEL SOL: Hires Bank To Aid in Debt-Restructuring
CABLEVISION: Seeks Bondholder Approval To Delay Bond Payment


B E R M U D A

GLOBAL CROSSING: Execs Explain Move To Employees
GLOBAL CROSSING: Glancy & Binkow LLP Commences Class Action Suit
GLOBAL CROSSING: Weinstein Kitchenoff Files Class Action Suit


B R A Z I L

TELECOM AMERICAS: BCI Reaches Deal With Investor On Stake Sale
TRANSBRASIL: Prado Sues Ex-Pres, Owners For Scrapping Sale


C H I L E

EDELNOR: Talking To Foreign Creditors On US$340M Debt Deal
TELEX-CHILE: Southern Cross, GE Capital To Tender 29% Stake


C O L O M B I A

COLPAPEL: Union Members Dubious About Future


J A M A I C A

KAISER ALUMINUM: Jamaican Ops Excluded In Bankruptcy Filing
KAISER ALUMINUM: Company Profile


M E X I C O

CINTRA: IPAB Board Schedules Meeting To Discuss Fate
LUZ Y FUERZA: Moving To End Electricity Theft


U R U G U A Y

GALICIA URUGUAY: Potential Liquidity Problem Surfaces


     - - - - - - - - - -


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

AUTOPISTAS DEL SOL: Hires Bank To Aid in Debt-Restructuring
-----------------------------------------------------------
Luis Freixas, president at Argentine-based Autopistas del Sol SA
(Ausol), announced his company has hired a bank to help
restructure dollar-denominated debt currently in default, reports
AFX. Freixas didn't disclose the name of the bank.

Ausol missed interest payments of US$7.9 million on its series A
notes and US$10.8 million on its series B notes, both due on
February 1, 2002.

According to Freixas, the restructuring could take the form of an
extension of the debt maturity, a partial debt forgiveness or
equity-for-debt transaction.

Ausol could not meet the interest payments due to the combined
negative impact that the unsettled currency devaluation following
the end of convertibility and the "pesofication" of tolls had on
the Company's cash flow. The difficult financial situation was
compounded by a steep decline in traffic caused by the deep
economic crisis affecting Argentina and the lack of liquidity in
the financial system.

Ausol holds the concession to operate and collect tolls on the
Autopistas Highway System, one of the most important access roads
to the city of Buenos Aires. The concession includes 95
kilometers of the northern access road (Ruta Panamericana) and 24
kilometers of the General Paz Avenue (the Buenos Aires
metropolitan area beltway). The northern access road consists of
a toll road and parallel toll-free lanes. The General Paz Avenue
is toll free. The concession requires the operation and
maintenance of the toll road, the parallel toll-free lanes, and
the Avenida General Paz. The toll road provides an important link
with the suburbs northwest of downtown Buenos Aires, with average
daily traffic of about 250,000 vehicles.


CABLEVISION: Seeks Bondholder Approval To Delay Bond Payment
------------------------------------------------------------
Leading Argentine cable company Cablevision SA issued a statement
to regulators saying it requested approval from bondholders to
delay for as much as four months payment on a $100 million one-
year bond due Friday, reports Bloomberg.

The Buenos Aires-based company said it would pay US$1.65 million
of interest on the bond Friday, even though the central bank
prohibits most overseas transfers. Cablevision didn't say how it
would make the interest payment on the floating-rate bond.

Currently, most Argentine companies can't pay their international
debts since the country devalued the peso by about 50 percent and
the central bank banned overseas wire transfers to service debts.



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

GLOBAL CROSSING: Execs Explain Move To Employees
------------------------------------------------
Gary Winnick and Lodwrick Cook, two top executives of the
embattled fiber optics firm Global Crossing Ltd., sent letters to
employees, explaining to them that the Company had no choice but
to file for bankruptcy, reports the Associated Press.

"We recognize that many of you have been hurt by the collapse of
our company's stock," the executives said. "There are no words to
explain how deeply we wish there had been a solution to our
current situation that could have been different."

Separately, CEO John Legere also sent letters to employees
defending his multimillion-dollar compensation package. In his
letter, Legere wrote that a $15-million loan he received that was
later forgiven was intended to compensate him for giving up stock
and options in Dell Computer Corp., where he was a high-ranking
executive before leaving to join Asia Global Crossing, of which
Global Crossing owns 59 percent.

He explained further that the $1.5 million salary and $3.5
million signing bonus he received when he joined Global Crossing
as chief executive in October, 2000, was considered reasonable by
the Company's board of directors.

Legere said he welcomed an investigation of the Company's
accounting practices by the Securities and Exchange Commission
(SEC), which launched its probe after allegations of questionable
accounting practices were raised by Global Crossing's former vice
president of finance.

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

CONTACT:  GLOBAL CROSSING
          PRESS:
          Dan Coulter
          +1-973-410-5810
          daniel.coulter@globalcrossing.com

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

          ANALYSTS/INVESTORS:
          Ken Simril
          +1-310-385-5200
          investors@globalcrossing.com


GLOBAL CROSSING: Glancy & Binkow LLP Commences Class Action Suit
----------------------------------------------------------------
Notice is hereby given that Glancy & Binkow LLP commenced a Class
Action lawsuit in the United States District Court for the
Central District of California on behalf of a class (the "Class")
consisting of all persons who purchased securities of GLOBAL
CROSSING LTD. ("GLOBAL CROSSING") (NYSE: GX) between January 2,
2001 and October 4, 2001, inclusive (the "Class Period").

The Complaint charges GLOBAL CROSSING and certain of its officers
and directors with violations of federal securities laws. Among
other things, plaintiff claims that defendants' material
omissions and the dissemination of materially false and
misleading statements regarding the nature of GLOBAL CROSSING's
financial statements caused GLOBAL CROSSING's stock price to
become artificially inflated, inflicting enormous damages on
investors.

For more information, contact Michael Goldberg, Esquire, of
Glancy & Binkow LLP, 1801 Avenue of the Stars, Suite 311, Los
Angeles, California 90067, by telephone at 310/201-9150 or Toll
Free at 888/773-9224 or by e-mail to info@glancylaw.com.

CONTACT:  Glancy & Binkow LLP, Los Angeles, CA
          Lionel Z. Glancy, 310/201-9150 or 888/773-9224
          Michael Goldberg
          info@glancylaw.com


GLOBAL CROSSING: Weinstein Kitchenoff Files Class Action Suit
---------------------------------------------------
Weinstein Kitchenoff Scarlato & Goldman Ltd. announced Tuesday
that a class action lawsuit has been filed on behalf of persons
who purchased the convertible preferred stock of Global Crossing
Ltd. (NYSE: GX) (OTC Bulletin Board: GBLXQ) between January 2,
2001 and October 4, 2001 (the "Class Period").

The lawsuit, filed in the United States District Court for the
Central District of California, charges certain of Global
Crossing's officers and directors with violating the Securities
Exchange Act of 1934 by issuing false and misleading public
statements during the Class Period concerning Global Crossing's
financial condition, and its ability to generate cash sufficient
to service its debt. The true picture of Global Crossing's
financial condition began to emerge on October 4, 2001, when
defendants issued a string of stunning announcements
contradicting their earlier public statements. On January 28,
2002, Global Crossing announced that it had commenced bankruptcy
proceedings. A proposed plan of reorganization will extinguish
the interests of Global Crossing's preferred and common
stockholders.

Prior to the disclosure of Global Crossing's true financial
condition, the individual defendants and certain other insiders
sold their personally held Global Crossing stock for more than
$149 million.

The lawsuit seeks to recover losses suffered by investors who
purchased Global Crossing's stock during the Class Period
(1/02/01 - 10/04/01) at artificially inflated prices.

Andrea Adlam or Paul Scarlato at 877/805-7200, or by email at
scarlato@wksg.com are listed as primary contacts regarding the
matter.


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

TELECOM AMERICAS: BCI Reaches Deal With Investor On Stake Sale
--------------------------------------------------------------
Bell Canada International Inc. ("BCI") (Nasdaq:BCICF) (TSE:BI)
today announced that a private investor has signed an agreement
to purchase US$300 million of common shares in Telecom Americas
Ltd. ("Telecom Americas"), BCI's Latin American joint venture.
BCI's interest in Telecom Americas would decrease to 39% from 42%
as a result of this purchase. The proceeds will be used to retire
debt. The deal is expected to close by the end of February 2002,
subject to the negotiation of definitive documentation and
customary closing conditions.

BCI, through Telecom Americas, owns and operates 4 Brazilian B
Band cellular companies serving more than 4.3 million subscribers
in territories of Brazil with a population of approximately 60
million. BCI is a subsidiary of BCE Inc., Canada's largest
communications company. BCI is listed on the Toronto Stock
Exchange under the symbol BI and on the NASDAQ National Market
under the symbol BCICF. Visit our Web site at www.bci.ca.

CONTACT:  Bell Canada International Inc.
          Brian Quick, 514/392-2369
          brian.quick@bci.ca


TRANSBRASIL: Prado Sues Ex-Pres, Owners For Scrapping Sale
----------------------------------------------------------
Dilson Prado da Fonseca went to court to reclaim control of the
Brazilian airline Transbrasil, which he lost when the sale was
scrapped after he failed to comply with necessary legal
requirements to finalize the acquisition.

Prado is initiating legal action against Celso Cipriani,
Transbrasil's former president, and the Fontana family, which
owns it, accusing them of irregularities and of hiding their
motives for suspending the sale.

Prado, who bought control of the airline for a symbolic one real
in January, was removed from the deal after he failed to provide
sufficient proof that he had the funds to help the grounded
carrier take flight again and never told regulators about the
sources of his investment.

Since 1999, Brazil's fourth-largest carrier has posted losses of
BRL365.5 million (US$155 million). The airline has liabilities of
more than BRL1 billion (US$416.7 million).

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

EDELNOR: Talking To Foreign Creditors On US$340M Debt Deal
----------------------------------------------------------
Talks between Empresa Electrica del Norte Grande SA (Edelnor) and
its foreign creditors on restructuring a US$340-million in debt
are underway, reports AFX.

The negotiatiosn, according to the report, focus both on the
amount of debt and maturities. Specific names of foreign
creditors involved were not disclosed.

Edelnor said that without the restructuring, the company could
face "serious difficulties" in meeting its financial obligations
this year.

Edelnor still has a bond payment coming due in March. Whether the
Company would make the bond payment if it fails to negotiate a
restructuring by then remains unclear.


TELEX-CHILE: Southern Cross, GE Capital To Tender 29% Stake
-----------------------------------------------------------
Jorge Dominguez, corporate finance director of investment bank
Banco Santander, revealed that US-based investment fund Southern
Cross and partner GE Capital plan to launch a public tender offer
for 29 percent of Chilean telecoms holding Telex-Chile at the end
of this week, Business News Americas reports.

Banco Santander is acting as Southern Cross's advisor in the
tender offer, which will cost the fund and GE Capital an
estimated US$1.7 million.

Once the tender offer is concluded they will control 44 percent.
Subsequently, the partners will have the opportunity to further
raise their stake in Telex through a US$387-million capital
increase, part of which will be used to pay off US$100 million in
debts.

The representatives of Southern Cross are now preparing to submit
the necessary documentation to the securities regulator SVS for
approval to carry out the capital increase. The SVS has 30 days
to respond to the request.

After these two operations, Southern Cross plans to make a US$10
million cash investment in Telex and secure a US$15 million line
of credit from Santander.

CONTACTS:  Banco Santander de Chile
           Jorge Dominguez
           Corporate Finance Director of Investment Bank
           Casa Matriz: Bandera 140
           Santiago, Chile
           Tel: 56 (2) 320-2000
           URL: http://www.bsantander.cl



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

COLPAPEL: Union Members Dubious About Future
--------------------------------------------
The operational restructuring at the Colombiana Kimberly Colpapel
plant in Pereira has had the Company's union members questioning
its survival.

The plant is now down to just 250 workers from its prior level of
700. The diapers line closed a year and a half ago and the
kitchen towels line closed at the end of 2001, taken to
Antioquia.

The firm also moved its administrative and financial operations
to Bogota and Medellin four years ago and has only registered in
Pereira as an `agency.'

Furthermore, machinery is set to be taken to Tocancipa
(Cundinamarca), where the firm runs its principal production
plant, or to the new plant in Puerto Tejada (Cauca).

Colombiana Kimberly produces hygienic paper, facial napkins,
special paper of kitchen, papers for the press and writing,
notebooks, diapers and feminine towels.

CONTACT:  COLOMBIANA KIMBERLY COLPAPEL S.A..
          Street 97A No. 9A-34 Floor 2, Bogota
          Telephone: (1) 600 3333
          Fax: (1) 601 7589



=============
J A M A I C A
=============

KAISER ALUMINUM: Jamaican Ops Excluded In Bankruptcy Filing
-----------------------------------------------------------
Kaiser Aluminum Corporation (NYSE:KLU) said Tuesday that the
company and its operating subsidiary Kaiser Aluminum & Chemical
Corporation and certain of its wholly owned subsidiaries have
filed voluntary petitions under Chapter 11 of the Federal
Bankruptcy Code in the United States Bankruptcy Court for the
District of Delaware.

In conjunction with the filing, the company expects to enter into
definitive documentation today for $300 million in Debtor-in-
Possession (DIP) financing from Bank of America, subject to court
approval. The DIP financing, in combination with the company's
current invested cash, should provide sufficient liquidity to
meet its ongoing operating needs. Kaiser's production and
shipment of bauxite, alumina, primary aluminum products, and
fabricated aluminum products will continue without interruption.

Kaiser has been facing significant near-term debt maturities at a
time of unusually weak aluminum industry business conditions,
depressed prices, and a broad economic slowdown that was further
exacerbated by the events of September 11. In addition, the
company has become increasingly burdened by asbestos litigation
and growing legacy obligations for retiree medical and pension
costs. The confluence of these factors has created the prospect
of continued operating losses and negative cash flow, resulting
in lower credit ratings and an inability to access the capital
markets.

In October 2001, Jack A. Hockema, who led the turnaround in
Kaiser's fabricated products businesses, was named the company's
President and Chief Executive Officer.

"When I came on board as President and CEO, it became evident
that Kaiser needed to accelerate the process it was pursuing to
establish a sustainable financial and operational framework,"
said Hockema. "While we have examined many alternatives
including, but not limited to, asset sales and debt
restructuring, no alternative provided more than a partial or
temporary fix. Only a filing provided the time and tools
necessary to adequately address these issues.

"The decision to seek protection under Chapter 11 will provide
Kaiser with the opportunity to reorganize its financial structure
and implement a strategic plan to return to sustained
profitability," said Hockema. "The reorganization process will
also allow the company to expand on and quicken the pace of its
operational improvements."

"Our core businesses are sound. Our fabricated operations have
good market positions, 'best-in-class' customer service rankings,
and continue to make progress in implementing 'lean sigma'
methods. At the same time our commodities businesses are
aggressively pursuing performance improvement initiatives," added
Hockema.

For well over half a century, Kaiser Aluminum has produced a wide
range of products from "upstream" bauxite, alumina and aluminum
to "downstream" products for the aerospace, ground
transportation, and industrial markets. The company will continue
to focus its energies on the quality products and superior
service for which it is known.

Hockema concluded, "Kaiser employees have been the key to our
past success, and their continued loyalty and commitment to the
job at hand will ensure that we meet the challenges we face.
There will be hard work and tough decisions ahead, but we have
weathered difficult times before and will use the reorganization
process to implement the financial and operational initiatives
that will position us for long-term success."

Although the filing includes certain U.S. subsidiaries through
which the company holds an interest in foreign operations, it
does not include the operations of the following entities: the
65%-owned Alpart alumina refinery and the 49%-owned Kaiser
Jamaica Bauxite Company in Jamaica; the 20%-owned QAL alumina
refinery in Australia; the 90%-owned Valco aluminum smelter in
Ghana; the 49%-owned Anglesey aluminum smelter in Wales, or the
100%-owned extrusion plant in Ontario, Canada. In this regard,
and in conjunction with expected approval of first-day court
motions, Kaiser has taken appropriate steps designed to ensure
that its participation in each of these entities, including the
funding of certain costs and expenses, will not be impacted by
the filings.

For additional information, see the newly established
restructuring section of the company's Web site (
www.kaiseral.com) or call the newly established restructuring
hotline at 888/829-3340 or 402/220-0856.

Kaiser Aluminum is a leading producer of alumina, primary
aluminum and fabricated aluminum products.

CONTACT:  Kaiser Aluminum Corporation, Houston
          Scott Lamb, 713/267-3826
          or
          Richard Tauberman, 713/267-3630
          or
          Jamie Schwartz, 713/267-3630


KAISER ALUMINUM: Company Profile
--------------------------------
NAME: Kaiser Aluminum Corporation
      5847 San Felipe, Suite 2600
      Houston, TX 77057-2887

PHONE: (713) 267-3675
        1-888-829-3340 or 1-402-220-0856 (Restructuring hotline)

WEBSITE: http://www.kaiseral.com

EXECUTIVE MANAGEMENT TEAM: Jack A. Hockema, President & CEO
                           John T. La Duc, Executive VP & CFO

INVESTOR RELATIONS:

      W. Scott Lamb, VP Investor Relations & Corp. Communications
      mailto:investor.relations@kaiseral.com

TYPE OF BUSINESS: Kaiser Aluminum Corporation (NYSE:KLU) is a
                  holding company that operates through its
                  wholly owned subsidiary, Kaiser Aluminum &
                  Chemical Corporation, which produces and
                  markets alumina and aluminum products.

BANKRUPTCY CASE NO.: 02-10429-PJW

CHAPTER 11 PETITION DATE: February 12, 2002

COURT: District of Delaware

JUDGE: Peter J. Walsh

SIC: Aluminum & Chemical

EMPLOYEES: 7,800

NET SALES: $480.3 (millions of dollars, Q ended March 31, 2001)

TOTAL ASSETS: Total Assets: $3,300,000,000

TOTAL LIABILITIES: Total Debts: $3,100,000,000

DEBTORS' COUNSEL: Daniel J. DeFranceschi, Esq.
                  John Henry Knight, Esq.
                  Patrick Michael Leathem, Esq.
                  Paul Noble Heath, Esq.
                  Richards, Layton & Finger, P.A.
                  One Rodney Square, P.O. Box 551
                  Wilmington, DE 19899
                  Tel: 302 658 6541

                         -and-

                  Corinne Ball, Esq.
                  James, Day, Reaves & Pogut
                  599 Lexington Ave., 32nd Floor
                  New York, New York 10022
                  Tel: 212 326 3939

FINANCIAL ADVISOR: Lazard Asset Management
                   30 Rockefeller Plaza
                   New York, NY 10020
                   (212) 632 6000
                   http://www.lazard.com

LEGAL ADVISOR: Jones, Day, Reavis & Pogue (Houston)
               Chase Tower, Suite 6500
                600 Travis Street
                Houston, Texas  77002-3008
                Tel: 832.239.3939
                Fax: 832.239.3600
                Contacts: Hugh R. Whiting

                       -OR-
                Jones, Day, Reavis & Pogue (New York)
                599 Lexington Avenue
                New York, NY 10022-6030
                Tel: 212.326.3939
                Fax: 212.755.7306
                Contacts: Dennis W. LaBarre

TRANSFER AGENT AND REGISTRAR FOR KAISER ALUMINUM CORPORATION
COMMON STOCK: BankBoston, N.A.
              c/o EquiServe
              P.O. Box 8040
              Boston, MA 02266-8040
              1-781-575-3400
              http://www.equiserve.com

Trustee for Kaiser Aluminum & Chemical Corporation 12-3/4% Senior
Subordinated Notes due 2003:

        State Street Bank and Trust Company
        Corporate Trust Customer Service Dept.
        2 Avenue de Lafayette
        Corporate Trust Window, Sixth Floor
        Boston, MA 02111-1724M
        1-800-531-0368


Trustee for Kaiser Aluminum & Chemical Corporation 9-7/8% Senior
Notes due 2002, 10-7/8% Series B Senior Notes due 2006, and 10-
7/8% Series D Notes due 2006:

        U.S. Bank Trust National Association
        180 E. 5th Street
        St. Paul, MN 55101
        1-800-934-6802

UNSECURED CREDITORS:

Entity                      Nature Of Claim       Claim Amount
------                      ---------------       ------------
State Street Bank &         12 3/4% Senior        $400,000,000
   Trust Company            Subordinated Notes
David Ganss                 Due 2003
2 Avenue de LaFayette
Boston, MA 02112-1724
Tel: 617 662 1724
Fax: 612 662 1466

U.S. Bank Trust National    9 7/8% Senior Notes   $397,780,000
   Association              Due 2002 and 10 7/8%
Rick Prokasch               Senior Notes Due 2006
180 East 5th Street
Suite 200
St. Paul, MN 55101
Tel: 651 244 0721
Fax: 651 244 0711

Bank One Trust Company,     State of Louisiana     $20,000,000
   N.A.                     Solid 7 3/4% Waste
Terri Franklin              Disposal Revenue Bonds
Corporate Trust Services
201 St. Charles Avenue
29th Floor
New Orleans, LA 7417
Tel: 504 623 1586
Fax: 504 623 1432

JP Morgan Chase Bank        West VA Pollution     $12,400,000
   Institutional Trust      61/2% Control Revenue
   Services                 Bonds
Pilar Maybill
2001 Bryan Street
10th Floor
Dallas, TX 75201
Tel: 214 468 6042
Fax: 214 468 6430

Defense Logistics Agency    Trade Debt             $10,852,325
Danny Lester
8725 Jhon J. Kingman Rd.
Suite 4616
Ft. Belvoir, VA 22060-6223
Tel: 703 767 5482
Fax: 703 767 5484


KAISER ALUMINUM: Seeks Court Ban To Protect Jamaican Units
----------------------------------------------------------
Kaiser Aluminum Corp. has asked a bankruptcy court to prohibit
certain noteholders from enforcing guarantees against two of the
Company's Jamaican subsidiaries that aren't bankrupt, reports Dow
Jones.

Kaiser, in its bankruptcy filing, explained that moves against
the Jamaican units, including a possible involuntary bankruptcy
filing, could prevent them from getting materials they need to
meet customer needs, resulting in a loss of significant revenue.

The company listed US$3.3 billion in assets and US$3.1 billion in
debt.



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

CINTRA: IPAB Board Schedules Meeting To Discuss Fate
----------------------------------------------------
Bank bailout agency IPAB's board of directors was scheduled to
meet February 13 to discuss the fate of airline holding company
Cintra, the Mexico City daily Reforma understands.

IPAB seemed keen on putting its 50.5-percent owned Cintra on the
block as soon as possible despite advice from several experts to
the contrary.

Just recently, the Communications and Transport Ministry (SCT)
announced the cancellation of its plans to sell Cintra
considering the fact that the world aviation industry continues
to struggle following the September 11 events.

Analysts were expecting Cintra to close 2001 with net losses
amounting to almost MXN1 billion as it struggled to stay afloat
amid the airline sector's current situation.

The Federal Competition Commission (CFC) has also expressed
opposition to the sale of Aeromexico and Mexicana together.
Aeromexico and Mexican are controlled by Cintra

CONTACTS:  CINTRA
           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

           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


LUZ Y FUERZA: Moving To End Electricity Theft
---------------------------------------------
Government-owned electricity utility Luz y Fuerza del Centro
(LFC) introduced a program to stave off heavy losses resulting
from electricity theft, primarily by the nation's thousands of
street vendors.

The goal of the program is for 100,000 new service contracts to
be signed, said LFC CEO Alfonso Caso Aguilar. The strategy is
expected to reduce electricity theft by 25 percent and save LFC
some MXN700 million.

Some MXN2.649 billion worth of electricity was stolen in 2001,
Aguilar informed.



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

GALICIA URUGUAY: Potential Liquidity Problem Surfaces
-----------------------------------------------------
Uruguayan bank Banco Galicia Uruguay S.A., controlled by the same
shareholders as Argentina's largest private bank, is currently
experiencing a run on deposits.

According to a Galicia Uruguay source, over US$300 million in
deposits had been withdrawn from the bank in just the last five
working days from a previous total of roughly US$1.2 billion in
deposits. If the situation continues, the Uruguayan bank will
face a short-term liquidity problem, revealed the source.

"I think that if the run continues, we're going to have a
transitory liquidity problem in Galicia in Uruguay," the Galicia
Uruguay source said.

Analysts believe the run on deposits is due to a lack of
confidence in Galicia stemming from the bank's problems in
neighboring Argentina, where many deposits have been frozen since
December and the banking system is deemed by ratings agencies to
be insolvent after a recent steep currency devaluation.

"It looks like people are concerned that Galicia's problems in
Argentina could affect their ability to get out their deposits in
the bank's unit in Uruguay," said Robert Lacoursiere, a banking
analyst for Lehman Brothers.

Banco Galicia Uruguay is controlled by the same primary
shareholders who control Argentina's Grupo Financiero Galicia
(GFG) (GFG) (GAL), which in turn controls Argentina's largest
privately run bank.

Analysts said the liquidity problem may also result from
transfers by Banco Galicia Uruguay to GFG's Argentine unit Banco
Galicia y Buenos Aires (GAL).

"It's highly likely that liquidity from Banco Galicia Uruguay was
being sent back to Argentina by the bank itself," Lacoursiere
said.

Banco Galicia Uruguay is controlled by Escasany, Ayerza and Braun
families, which also hold most of GFG.

CONTACTS:  Banco Galicia Uruguay S.A.
           Montevideo Word Trade Center
           Luis A. Herrera 128, pisos 21 y 22 (11300)
           Montevideo, Uruguay
           Tel: (059) 628-1230
           Fax: (059) 628-3989
           http://www.e-galicia.com

                    or

           Punta del Este
           Calle 18 (Baupres)
           940 Punta del Este, Uruguay
           Tel: (0842) 41121/41122/44862
           Fax: (0842) 44861

                    Or

           Colonia Gral. Flores 200 Colonia de sacramento
           Uruguay
           Tel: (022) 24633/24634
           Fax: (022) 24633/24634

                    or

           Salto Uruguay 534 Salto
           Uruguay
           Tel: (00598) 73 28280/28281
           Fax: (00598) 73 28280



               ***********


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.

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