TCRLA_Public/020218.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 18, 2002, Vol. 3, Issue 34



GLOBAL CROSSING: Applies To Employ Appleby As Bermuda Counsel
GLOBAL CROSSING: Schatz & Nobel Suing on Equity Holders' Behalf
GLOBAL CROSSING: Spector, Roseman Files Class Action Suit
GLOBAL CROSSING: Milberg Weiss Expands Class Period for Suit
GLOBAL CROSSING: Weiss & Yourman Files Shareholder Class Action
GLOBAL CROSSING: Filings Reveal More Of Chairman's Dealings


EMBRAER: Shares Move Up On Planned Share Issue
LOBO CABO: Competitor's Sluggish Satellite Growth A Plus
GLOBO.COM: Telecom Italia Looking To Get Rid Of Stake


BURLINGTON INDUSTRIES: Losses Widen In The First Quarter
ENRON: Talks With Suez Lyonnaise Over Asset Acquisition Underway
SAVIA: Shares Down On Seminis' Plummeting Share Value
SAVIA: Seminis Reports $3.7 Mln Improvement in EBITDA for 1Q02


SIMSA: Readies Restructuring Plan For June Vote


INTER TROPICAL: Puts Aircraft On The Block To Raise Cash


BANCO COMERCIAL: S&P Lowers Ratings; Still on Watch Negative
GALICIA URUGUAY: Uruguayan Central Bank Rules Out Bailout

   - - - - - - - - - - -


GLOBAL CROSSING: Applies To Employ Appleby As Bermuda Counsel
By this Application, Global Crossing seeks to employ and retain
Appleby Spurling & Kempe as Global Crossing's special Bermuda
insolvency counsel to advise and represent the Company in Bermuda
in relation to all aspects of Bermuda Corporate Insolvency,
Restructuring and Liquidation law.

According to Mitchell C. Sussis, the Debtors' Corporate
Secretary, since October 1997, Appleby and certain of its members
and associates have rendered legal services to the Debtors in
connection with various matters. Appleby's services have
primarily related to counseling the Debtors on Bermuda law in
relation to incorporations, corporate administration, initial
public offerings, credit agreement opinions, employment
regulations, joint venture agreements and general corporate and
legal advice.

As a consequence of the breadth of their representation of the
Debtors for the past 4 years, Mr. Sussis believes that Appleby is
intimately familiar with the complex legal issues that have
arisen and are likely to arise in connection with the Debtors'
business and operations, their restructuring, and their strategic
and transactional goals. The Debtors believe that both the
interruption and the duplicative cost involved in obtaining
substitute counsel to replace Appleby's unique role at this
juncture would be extremely harmful to the Debtors and their
estates and creditors.

Were the Debtors required to retain counsel other than Appleby in
connection with the specific and limited matters upon which
Appleby's advice is sought, the Debtors, their estates and all
parties in interest would be unduly prejudiced by the time and
expense necessary to replicate Appleby's ready familiarity with
the intricacies of the Debtors' business operations, corporate
and capital structure, and strategic prospects.

The Debtors submit that Appleby is well qualified and uniquely
able to provide the advice sought by the Debtors on a going
forward basis. As Appleby is a general practice law firm
incorporated in Bermuda which offers corporate, litigation,
insolvency, asset finance, property and regulatory advice to its
clients, the Debtors believe Appleby will be an efficient
provider of legal services with respect to matters of Bermuda
law. Appleby's retention as special Bermuda insolvency counsel in
these areas is in the best interest of the Debtors and their
estates and creditors.

Mr. Sussis explains that the Debtors' parent company, Global
Crossing Ltd., and a number of its subsidiaries, are Bermuda
corporations and thus, the Debtors have assets, operations and
employees located in Bermuda. A bankruptcy filing in the United
States will require the commencement of winding up proceedings in
Bermuda pursuant to the Bermuda Companies Act 1981. Therefore, an
ongoing review and analysis of various laws of Bermuda will be
necessary. The Debtors will need counsel well versed in the local
laws of Bermuda and as a result, seek to retain Appleby to advise
and represent them on all aspects of Bermuda Corporate
Insolvency, Restructuring and Liquidation law.

Jennifer Yolande Fraser, Esq., a partner of Appleby Spurling &
Kempe, assures the Court that Appleby does not represent or hold
any interest adverse to the Debtors and their estates with
respect to the matters on which Appleby is to be employed and
Appleby has no connection to the Debtors, their creditors or
their related parties. Appleby will also conduct an ongoing
review of its files to ensure that no conflicts or other
disqualifying circumstances exist or arise. If any new facts or
relationships are discovered, Appleby will supplement its
disclosure to the Court.

Subject to Court approval under section 330(a) of the Bankruptcy
Code, compensation will be payable to Appleby on an hourly basis,
plus reimbursement of actual, necessary expenses and other
charges incurred by Appleby. The hourly rates charged by Appleby

       Partners                     $425.00-$500.00
       Associates and Paralegals    $175.00-$425.00
       Legal Assistants             $150.00-$200.00

The partners, counsels, associates and paralegals currently
expected to work on these matters together with their current
hourly rates are:

       John Riihiluoma     $500.00/hour
       Peter Bubenzer      $500.00/hour
       Jennifer Fraser     $475.00/hour
       Judy Collis         $500.00/hour
       Susan Davis         $250.00/hour
       Renee Lambert       $175.00/hour

Prior to the date on which the Debtors filed their chapter 11
cases, Ms. Fraser informs the Court the Debtors have paid Appleby
approximately $155,000 for pre-petition services rendered and
that Appleby is holding $400,000 as a retainer for post-petition
services to be rendered to the Debtors and for post-petition
expenses to be incurred for such services.

The Debtors seek approval of the application on an interim basis
in order to provide parties an opportunity to object to the
relief requested herein. If the Court approves the application
and no objections are timely filed, the Debtors request that the
application be deemed granted on a final basis without further
notice or hearing.

                               * * *

Judge Gerber entered an interim order approving Appleby's
employment, with objections due by February 22, 2002 and a
hearing on March 1, 2002. If no objections are filed, Judge
Gerber orders that this interim order shall be deemed a final
order. (Global Crossing Bankruptcy News, Issue No. 3, Bankruptcy
Creditors' Service, Inc., 609/392-0900)

GLOBAL CROSSING: Schatz & Nobel Suing on Equity Holders' Behalf
A lawsuit seeking class action status has been filed in the
United States District Court for the Southern District of New
York on behalf of all persons who purchased securities of Global
Crossing, Ltd. (Nasdaq: GX) ("Global Crossing" or "Company")
between August 13, 1998, and January 28, 2002, inclusive (the
"Class Period").

Plaintiff is represented by the law firm of Schatz & Nobel, P.C.,
which has significant experience prosecuting class actions on
behalf of investors. If you wish to discuss this action or have
any questions concerning this notice or your rights or interests
with respect to these matters, please contact attorneys Andrew M.
Schatz, Patrick A. Klingman, Wayne T. Boulton, or Nancy A. Kulesa
at (800) 797-5499, or by e-mail at For more
information about Schatz & Nobel, P.C., and class action cases,
please visit our website at

The Complaint alleges that Global Crossing, a worldwide
telecommunications provider, several members of its top
management, and Arthur Andersen, LLP, the Company's auditor,
misled the investing public during the Class Period regarding
Global Crossing's financial condition. In particular, the Company
engaged in barter transactions in which it contracted to share
capacity on its network with other telecommunications providers
in exchange for similar use of theirs. The "sale" side of the
barter transaction was booked as current revenue while the
"purchase" was booked as capital expense, thus enabling the
Company to report the transaction as revenue enhancing when in
fact it was revenue neutral. The Complaint alleges such reporting
violated the most basic accounting principles. Nevertheless,
Arthur Andersen, LLP provided unqualified audit opinions
throughout the Class Period.

Plaintiff seeks to recover damages on behalf of all Class
members. For more information contact Schatz & Nobel, P.C. toll-
free at (800) 797-5499, or by e-mail at

CONTACT:  Andrew M. Schatz
          Patrick A. Klingman
          Wayne T. Boulton
          Nancy A. Kulesza
          Tel. +1-800-797-5499


GLOBAL CROSSING: Spector, Roseman Files Class Action Suit
Spector, Roseman & Kodroff, P.C. filed a class action suit
against Global Crossing, Ltd. (NYSE:GX) (OTCBB:GBLXQ) ("Global"
or the "Company") and certain of its officers and/or directors in
the United States District Court for the Western District of New
York on behalf of purchasers of the common stock of Global during
the period between April 28, 1999 through 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, Global filed for Chapter 11 Bankruptcy
protection on January 28, 2002 after becoming unable to service
its debt.

Those who have sustained substantial losses in Global Crossing,
Ltd. securities during the Class Period, are encouraged to
contact Spector, Roseman & Kodroff, P.C. at classaction@srk- for a more thorough explanation of the Lead Plaintiff
selection process.

For more information contact plaintiff's counsel Robert M.
Roseman toll-free at 888-844-5862 or via E-mail at For more detailed information about the
firm see its Website at

CONTACT:  Spector, Roseman & Kodroff, P.C., Philadelphia
          Robert Roseman
          (888) 844-5862

GLOBAL CROSSING: Milberg Weiss Expands Class Period for Suit
Milberg Weiss ( announced
Thursday that a class action has been commenced in the United
States District Court for the Central District of California on
behalf of purchasers of Global Crossing Ltd. ("Global Crossing")
(NYSE: GX) publicly traded securities during the period between
February 14, 1999 and October 4, 2001 (the "Class Period").

The complaint charges certain of Global Crossing's officers and
directors with violations of the Securities Exchange Act of 1934.
Due to its recent bankruptcy filing, Global Crossing is not named
as a defendant in the action. 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 bandwidth 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 $1.5 billion in
proceeds and the Company raised over $7 billion in debt and
equity offerings.

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 October 4, 2001. On
that date, the Company issued a string of stunning announcements:
cash revenues in the third quarter would be approximately $1.2
billion, $400 million less than the $1.6 billion 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 priced plunged by 49% to $1.07 per share.

Plaintiff seeks to recover damages on behalf of all purchasers of
Global Crossing publicly traded securities during the Class
Period (the "Class").

Milberg Weiss Bershad Hynes & Lerach LLP, a 170-lawyer firm with
offices in New York, San Diego, San Francisco, Los Angeles, Boca
Raton, Seattle and Philadelphia, is active in major litigations
pending in federal and state courts throughout the United States.
The Milberg Weiss website ( has more
information about the firm.

CONTACT:  William Lerach

          Darren Robbins
          Tel. +1-800-449-4900

GLOBAL CROSSING: Weiss & Yourman Files Shareholder Class Action
A shareholder of Global Crossing (NYSE:GX) has filed a securities
class action lawsuit in the United States District Court for the
Central District of California, Case No. CV-02-1074 R (PJWx), on
behalf of all persons who acquired Global Crossing common stock
between January 2, 2001 and October 4, 2001, inclusive.

The complaint charges that certain officers and directors of
Global Crossing violated Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934 and Rule 10-b(5) by, among other
things: violating Generally Accepted Accounting Principles to
artificially inflate the Company's revenues and earnings and
issuing false and misleading statements regarding the Company's
past financial performance, the global market for bandwidth on
its fiber optic network and the Company's anticipated future

According to the complaint, 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 October 4,
2001 with a string of stunning announcements. As a result of
these announcements, the price of Global Crossing stock plunged
almost 50%.

Due to its recent bankruptcy filing, Global Crossing is not named
as a defendant in the action.

Plaintiffs seek to recover damages on behalf of class members and
is represented by the law firm of Weiss & Yourman which has
significant experience and expertise in prosecuting class actions
on behalf of investors and shareholders.

For more information on this case, see the firm's website ( or contact them at the numbers below.

CONTACT:  Weiss & Yourman (New York)
          Telephone: 888/593-4771
          Weiss & Yourman (Los Angeles)
          Telephone: 800/437-7918
          TICKERS: NYSE:GX

GLOBAL CROSSING: Filings Reveal More Of Chairman's Dealings
Regulatory filings revealed that Gary Winnick, chairman at the
recently-bankrupted Bermuda and California-based Global Crossing,
controlled companies that had lucrative dealings with the fiber
optics network firm prior to its demise.

According to an article in the Associated Press, the special
relationships between the firms added an undisclosed amount to
the personal profits of Winnick.

Documents filed with the Securities and Exchange Commission
showed that these dealings involved Global Crossing paying
millions of dollars to Winnick through Pacific Capital Group Ltd.
and its subsidiaries, which covered real estate leases, corporate
aircraft fees and financial advice.

In one deal made in October 1999, Global Crossing agreed to pay
North Cresent Realty, a subsidiary of Pacific Capital, US$400,000
a month to lease office space in Beverly Hills. Pacific Capital
then subleased space back to North Cresent Realty for US$53,000 a

The agreement also involved Global Crossing paying North Cresent
US$3.2 million toward US$7.5 million of renovations.

The company said an independent real estate consultant reviewed
the complex transaction and determined it to be "the product of
an arm's length negotiation."

Winnick's spokesman, Mike Sitrick, revealed Global Crossing got
three independent valuations of the property and paid North
Cresent the middle quote. In addition, Winnick excused himself
from the negotiations, Sitrick said.

Pacific Capital also billed Global Crossing US$2 million during
1999 for using airplanes in which Pacific had a stake. Sitrick
said the fee was less than Global Crossing would have paid an
independent charter company.

Global Crossing made another large payment to Winnick's companies
as part of a consulting contract drawn up in 1997, in which a
unit of Pacific Capital advised Global Crossing's wholly owned
subsidiary, Atlantic Crossing Ltd., on a US$482-million loan.

Under terms of the deal, Pacific Capital's PCG Telecom was to
receive 2 percent of Atlantic Crossing's gross revenue over a 25-
year period.

In June 1998, Global Crossing terminated the deal by agreeing to
pay US$135 million to Pacific Capital, several members of Global
Crossing's own board, including Winnick, and two financial
partners: the CIBC and Union Labor Life Insurance Co.

For more info about the Company's bankruptcy filing:

          Dan Coulter

          Becky Yeamans

          Ken Simril


EMBRAER: Shares Move Up On Planned Share Issue
Empresa Brasileira Aeronautica SA's (Embraer) shares edged 5.4
percent higher to BRL14.49, its biggest gain since a 9.4 percent
rise on Oct. 11, after it said it would hand out an extra
dividend of BRL342 million in shares, says Reuters.

The world's fourth-biggest jet aircraft maker told the bourse
about its plans to increase the number of preferred shares in the
market. The Company also informed the bourse it may issue more
88.4 million shares to distribute among shareholders as a bonus.

"Preferred shares will gain liquidity and that is very positive
for investors," said Fabio Zagatti, an analyst at HSBC Investment
in Sao Paulo.

"The company was hit last year by the attacks on Sept. 11, but it
is now recovering and had good cash flow," said Credit Lyonnais
analyst Ricardo Fernandez.

About 61 percent of Embraer's shares are preferred while about 39
percent are common. If the new issue is approved, preferred
shares would represent 66 percent of total shares, Zagatti said.

Embraer said a general shareholder meeting will vote the subject
on March 1.

           Bob Sharp, Press office mgr.
           Wagner Gonzalez, Press officer
           Phone +55 12 3945 1311
           Fax + 55 12 3945 2411

GLOBO CABO: Competitor's Sluggish Satellite Growth A Plus
Shares of Globo Cabo, Brazil's biggest cable service operator,
rose 6.7 percent to BRL0.64 on speculation a slowdown in a
competing satellite technology may boost earnings at the cable
television provider, reports Bloomberg.

"Satellite growth slowed for Sky Brasil in the fourth quarter,
and that could indirectly benefit Globo Cabo," as people opt for
cable television service instead, said Matthieu Coppet, Latin
America media analyst with UBS Warburg LLC in New York. Sky
Brasil is a unit of News Corp Ltd.

Globo Cabo is the biggest decliner this year among the 57 stocks
on the Bovespa index, losing 22 percent, compared to a 6.1
percent decline by the Bovespa. The drop in share value reflects
the Company's losses in cable TV and Internet subscribers,
amplified by the general economic downturn affecting its bottom

Due to a slowdown in Brazil's economic growth last year, the
number of Globo Cabo's subscribers fell by 41,600 to 1.43
million. Meanwhile, a 16 percent slump in the real has also
caused the Company's debt, most of which is denominated in U.S.
dollars, to rise. By Sept. 30, 2001, debt had grown to BRL1.82
billion from BRL1.55 billion a year earlier.

          Luis Henrique Martinez, 5511-5186-2684,

          Marcio Minoru, 5511-5186-2811,

GLOBO.COM: Telecom Italia Looking To Get Rid Of Stake
Telecom Italia chairman, Marco Tronchetti Provera, announced that
the group is considering the sale of its 30 percent stake in
Brazilian Internet portal firm in an effort to slash
debts, reports Reuters.

"We are trying to find people who can manage We are
trying to see if we can use it or sell it," Tronchetti Provera

Telecom Italia said it was writing down about EUR900 million on
account of its position, part of a wider EUR3.6-billion write-
down of assets throughout the group.

Telecom Italia purchased for US$810 million in the
midst of the dotcom craze in 2000. is part of Brazil's
powerful Globo Network media empire but has struggled in the
country's competitive online environment. Tronchetti Provera said
the Brazilian investment is worth "virtually nothing."


BURLINGTON INDUSTRIES: Losses Widen In The First Quarter
Losses at Burlington Industries, which filed for Chapter 11
bankruptcy protection in November, widened in the first quarter
ended Dec. 29, 2001, reports Knight-Ridder Business News.

In documents filed with the SEC, the textile manufacturer posted
a loss of $75.2 million, or $1.42 a share, compared with a loss
of $11.5 million, or 22 cents a share, for the same quarter in

The Company's sales during the period were $246.2 million, a 32.4
percent drop from $364.3 million for the comparable period a year

Burlington's apparel-fabrics business recorded a loss of $18
million, compared to a loss of $7.6 million for the first quarter
in 2000. Its interior-furnishings business had a loss of $6.6
million, compared to a loss of $2.8 million for the same period
the previous year.

The Company's carpet business did not show a loss, but its net
income fell to $6.2 million from $12.2 million for the first
quarter in 2000.

However, despite these losses, cash flow in the first quarter was
better than expected, according to company spokeswoman, Delores

"Liquidity remains very good, and that is an important focus as
we go through this restructuring process," she said.

Plagued with debt of $1.1 billion and competition from foreign
imports, Burlington began working on a new business model in

As part of its reorganization, the company said in early January
that it would restructure its apparel fabrics group because of
continued pressure from foreign imports and a weak economy,
cutting 4,000 jobs in the United States and Mexico, and selling
or closing five plants.

To see financial statements:

NAME: Burlington Industries, Inc.
      3330 W. Friendly Ave.
      Greensboro, NC 27410-4800

PHONE: (336) 379-2000

FAX: (336) 332-0815



George W. Henderson, III, Chairman of the Board & CEO
   2001 annual salary $630,000

Douglas J. McGregor, President & Chief Restructuring Officer
   2001 annual salary    $525,000

Charles E. Peters, Jr., Senior VP & CFO
   2001 annual salary $370,833

                    Manager of Investor Relations
                    Burlington Industries, Inc.
                    P. O. Box 21207
                    Greensboro, NC 27420
                    Tel. +1-336-379-2788
                    Fax. (336) 379-4504

TYPE OF BUSINESS: Diversified manufacturers of softgoods for
                  apparel and interior furnishings.

TRIGGER EVENT: Burlington Industries, Inc. filed for Chapter 11
               bankruptcy protection in November due to massive
               debts, tight competition from cheaper imported
               textiles and a slowdown in consumer spending

               As part of the filing, the Company announced a
               comprehensive reorganization of its apparel
               fabrics, which included a plan to sell or close
               its denim garment operation in Aguascalientes,
               Mexico. The Company then estimated a loss of
               approximately 1200 jobs in Mexico as the result of
               the plant closings.


EMPLOYEES: 13,700 (2001)

SALES: $ 1,403,905 (2001)

TOTAL ASSETS: $ 1,184,995 (2001)

TOTAL LIABILITIES: $ 1,184,995 (2001)

FINANCIAL STATEMENTS: For year end 1999, 2000 and 2001 view at

AUDITOR: Ernst & Young LLP
         21800 Oxnard Street, Suite 500
         Woodland Hills, CA 91367
         Telephone:  818-703-4848


U.S. BANKRUPTCY COURT: United States Bankruptcy Court
                       District of Delaware
                       824 Market Street, Fifth Floor
                       Wilmington, Delaware 19801
                       Telephone (302) 252-2900

BANKRUPTCY JUDGE: The Honorable Peter J. Walsh

DEBTORS' LEAD COUNSEL: David G. Heiman, Esq.
                       Richard M. Cieri, Esq.
                       Carl E. Black, Esq.
                       JONES, DAY, REAVIS & POGUE
                       North Point
                       901 Lakeside Avenue
                       Cleveland, Ohio 44114
                       Telephone (216) 586-3939
                       Fax: (216) 579-0212


                       Brett J. Berlin, Esq.
                       JONES, DAY, REAVIS & POGUE
                       3500 SunTrust Plaza
                       303 Peachtree Street, N.E.
                       Atlanta, Georgia 30308
                       Telephone (404) 521-3939
                       Fax (404) 581-8330


                       Michelle Morgan Harner, Esq.
                       JONES, DAY, REAVIS & POGUE
                       77 West Wacker, Suite 3500
                       Chicago, Illinois 60601
                       Telephone (312) 782-3939
                       Fax (312) 782-8585

Debtors'Local Counsel: Daniel J. DeFranceschi, Esq.
                       Paul N. Heath, Esq.
                       RICHARDS, LAYTON & FINGER, P.A.
                       One Rodney Square
                       P.O. Box 551
                       Wilmington, Delaware 19899
                       Telephone (302) 658-6541
                       Fax (302) 651-7701

U.S. TRUSTEE:          United States Trustee for Region III
                       844 King Street, Suite 2313
                       Lockbox 35
                       Wilmington, Delaware 19801-3519
                       Telephone (302) 573-6491
                       Fax (302) 573-6497


Entity                      Nature Of Claim       Claim Amount
------                      ---------------       ------------
The Bank of New York        Unsecured Claims      $150,000,000
As Indenture Trustee for
the 7.25% Notes Due 2005
Attn: Ming Shiang
Vice President
5 Penn Plaza, 13th Floor
New York, NY 10001-1810
Tel: 212-896-7197
Fax: 212-896-7298

El DuPont NeMour            Trade Debt              $8,102,420
Attn: Bob Novotny
Chestnut Run Plaza
Bldg. 728, Room 133
Wilmington, DE 19880
Tel: 302-892-7215
Fax: 302-999-4064

Unifi Inc.                  Trade Debt              $1,529,883
Billy Moore
7201 W. Friendly Avenue
Greensboro, NC 27410
Tel: 336-316-5664

KOSA                        Trade Debt              $1,222,550
Attn: Frank Tammel
PO Box 651558
4501 Charloote Park Dr
Charlotte, NC 28265-1558
Tel: 704-586-7497
Fax: 704-480-4848

ENRON: Talks With Suez Lyonnaise Over Asset Acquisition Underway
Suez Lyonnaise des Eaux is in contact with Enron Corp's Chapter
11 administrators over the acquisition of Enron holdings in
Mexico, Suez chairman and chief executive Gerard Mestrallet said
in an AFX report. Suez handles a water project in Mexico through
its unit Ondeo at Cancun.

Suez/Tractebel had completed a deal to buy Enron's Monterrey 250
megawatt co-generation plant near Mexico's border with Texas just
before Enron went into Chapeter 11, Mestrallet said.

He noted that it is harder to negotiate now that Enron is in the
bankruptcy administration process than previously with its
corporate managers.

SAVIA: Shares Down On Seminis' Plummeting Share Value
Shares in the embattled conglomerate Savia SA, the world's
largest vegetable-seed producer, on Wednesday, fell 4.4 percent
to MXN2.37 pesos on investor concern over the sinking share price
of its U.S. seed unit Seminis Inc., reports Bloomberg.

Shares of Seminis, Savia's principal asset, dropped 5.7 percent
the previous day to US$1.16.  Savia is in the process of
restructuring its operations and reducing its heavy debt load.

Savia, through its subsidiaries Seminis and Bionova, is a world
leader in the development, production and marketing of seeds for
fruits and vegetables. It is also a principal distributor of
fresh fruits and vegetables in North America. Its operations
extend to 120 countries and employ nearly 8,000. Annual sales are
approximately $800 million (U.S.)

SAVIA: Seminis Reports $3.7 Mln Improvement in EBITDA for 1Q02
According to an official company press release, Savia disclosed
the following:

* Adjusted EBITDA Positive for First Time during a 1st Quarter
* Seed sales Up 1.3% in Constant Dollars
* Gross Margins Improve from 59.4% to 62.2%
* Syndicated Bank Debt Reduced by $32.5 Million during 1st Q and
Jan '02

Seminis Inc. (Nasdaq: SMNS), the world's largest developer,
grower and marketer of vegetable and fruit seeds, announced that
earnings before interest, taxes, depreciation and amortization
(EBITDA) for its first quarter ended December 28, 2001, improved
$3.7 million, from a loss of $4.2 million in the same period last
year to a loss of $0.5 million this period.

To show the results of the Company's ongoing operations, on an
adjusted basis, excluding the impact of divested non-core
businesses during the quarter, EBITDA increased by $4.0 million
to $0.9 million. Accounting for these considerations, this was
the first time Seminis posted a positive EBITDA for the first
quarter of a fiscal year. The first quarter is typically one of
the company's most challenging reporting periods due to the
seasonal nature of seed industry sales. The company credits
improved efficiencies in operations stemming from its Global
Restructuring and Optimization Plan for the turnaround.

"The positive EBITDA from ongoing operations excluding divested
businesses is the direct reflection of more efficient operations
and the healthier financial structure of our core business
activities," said Eugenio Najera, President and Chief Operating
Officer. "Non-recurring charges associated with our
reorganization are largely behind us, and our results are more
clearly showing the cash-generating potential of the company."

Seminis reported that net sales were $80.1 million, down 1.4%
from $81.2 million reported in the first quarter of fiscal year
2001. Excluding the impact of a negative currency fluctuation of
$1.7 million in the first quarter of FY 2002, net sales were
$81.8 million compared to $81.2 million in the same period last
year. The company also reported that in constant dollars its core
seed sales increased by $1.0 million to $76.6 million, up 1.3%
from the same period last year.

Seminis announced that gross profit improved this quarter to
$49.8 million, or 62.2% of net sales, up 3.2% from $48.3 million,
or 59.4%, in the same quarter last year. Gross margin for net
seed sales was 62.7% compared to 60.8% during the first quarter
last year.

In line with the company's streamlined organization and mainly as
a result of the Company's Global Restructuring and Optimization
Plan, total operating expenses for the quarter declined by $6.0
million, or 9.1%, to $60.0 million, compared to $66.0 million in
the same quarter last year.

The company's operating loss narrowed by 42.6% during the first
quarter of FY 2002 to $10.2 million, from $17.7 million during
the same period a year ago. Due to the cyclical nature of the
seed business, losses during this quarter are considered normal.
Primarily as a result of an $8 million increase in income tax
expense versus the same quarter last year, the company posted a
net loss for the quarter of $19.3 million compared with a loss of
$16.8 million for the same period in FY 2001.

"The initiatives associated with our Global Restructuring and
Optimization Plan such as cash flow and working capital
optimization, inventory reduction, workforce consolidation,
product rationalization, and new risk-management systems, have
been implemented successfully, and are positively affecting both
our operational and financial results," said Mr. Najera. "As we
move forward, we expect that these initiatives will continue to
provide a positive catalyst for profitability and growth."

As of the first quarter of FY2002, Seminis' syndicated bank debt
was $273.7 million compared to $315.5 million at December 2000.
In addition, the company paid another $13 million toward the
principal during January 2002 with proceeds from the sale of a
non-core business to further reduce its syndicated loan to $261
million. The company is in compliance with all of its financial
covenants under its current loan agreement.

Mr. Alfonso Romo, Chairman and CEO, commented: "The company has
acted aggressively to retire its debt, reducing the syndicated
credit facility by $60 million in the last sixteen months. This
has led the Company to increased financial flexibility."

Mr. Romo concluded: "The positive EBITDA results from our ongoing
operations during a quarter with historically negative cash flow
demonstrate that Seminis has become a lean and efficient
organization focused on creating and capturing value and
represents a strong indication of the Company's recovery and
future business potential. Our powerful R&D capabilities -- which
are being fully funded during our short-term reorganization --
provide Seminis with an unrivaled platform for sustained, long-
term growth. Matched with a product delivery system that is fast-
becoming the most efficient in the industry, Seminis can take
full advantage of its growth and cash flow generation potential.
This efficiency that the Company is attaining will greatly
support our vision of creating and capturing value in the

About Seminis

Seminis (Nasdaq: SMNS) is the largest developer, grower and
marketer of vegetable seeds in the world. The company uses seeds
as the delivery vehicle for innovative agricultural technology.
Its products are designed to reduce the need for agricultural
chemicals, increase crop yield, reduce spoilage, offer longer
shelf life, create better tasting foods and foods with better
nutritional content. Seminis has established a worldwide presence
and global distribution network that spans 120 countries. Seminis
is a majority owned subsidiary of Savia (NYSE: VAI), a leading
Mexico-based conglomerate.

To see financial statements:

CONTACTS:  Enrique Osorio
           Seminis Inc.
           Dieter Holtz
           Seminis Inc.


SIMSA: Readies Restructuring Plan For June Vote
Peruvian lead-zinc miner San Ignacio de Morococha (Simsa),
presently operating under bankruptcy protection from creditors,
is currently working out the details of a restructuring plan,
says Business News Americas.

The Company is working hard to finalize the plan in order to have
its creditors vote on it by June. This time, according to the
report, it will be the suppliers, not the banks, who will have
the final say.

Simsa owes suppliers US$9.71 million, banks US$3 million, workers
US$2.46 million, tax authorities US$460,000 and others US$2.6

The Company's shareholders voted to enter Peru's version of
Chapter 11 late in December to restructure the debts after
suffering US$14 million of losses in the last two years, a result
of low zinc prices, rockfalls at its underground operations,
fatal accidents, legal disputes among shareholders and low

The one dissenter to the decision was the world's number two
copper miner, Phoenix-based Phelps Dodge, which is Simsa's
largest shareholder with 40 percent. It recommended the company
should declare itself insolvent.

Simsa mines at San Vicente in the Chanchamayo area of Junin
department in central Peru and ranks as a medium-sized Peruvian
mining company.


INTER TROPICAL: Puts Aircraft On The Block To Raise Cash
Suriname-based airline Inter Tropical Aviation (ITA) announced
plans to auction off its aircraft because it cannot pay its US$2-
million debt, the Associated Press reports.

According to ITA Chairman Shyam Guptar, the carrier was unable to
pay its debt because Suriname's government pulled its operating
license, leaving it unable to generate any revenue.

"I literally begged the government to give us permission to
continue our domestic flights so we could pay our debts, but they
refused," Guptar said.

ITA plans to sell off two Cessna aircraft, one Antonov plane and
one helicopter to be able to pay two foreign investors, whose
names were not specified.

The government pulled the license in September, shortly after the
airline stopped flying and closed its offices, stranding 800
passengers in Suriname and 300 in the Netherlands for up to three


BANCO COMERCIAL: S&P Lowers Ratings; Still on Watch Negative
Standard & Poor's lowered Thursday its long- and short-term
counterparty and CD ratings on Banco Comercial S.A., the largest
private-sector bank in Uruguay.  The bank's long-term foreign
currency debt rating has also been lowered (see list below). The
ratings remain on CreditWatch Negative.

The bank's ratings were downgraded on Dec. 21, 2001, as a
consequence of the significant direct and indirect exposure the
bank had to Argentina, and from the pressure of that exposure on
asset quality and profitability. On Jan. 31, 2002, Standard &
Poor's placed Banco Comercial's ratings on CreditWatch with
negative implications, following fraud allegations made in
Argentina against two indirect owners and executive board members
of the bank. The men were also indirect owners and managers of
the Argentine entity Banco General de Negocios S.A. (SD/--/SD).

The current rating action derives from the potential impact the
bank might have in relation to the alleged improper activities
carried out at Banco General de Negocios.  The magnitude of the
impact is uncertain, but the bank will probably need to be
recapitalized.  The international shareholders of the bank (that
also participate in the ownership of Banco General de Negocios),
JPMorganChase Bank, Credit Suisse First Boston, and Dresdner Bank
Lateinamerika AG, are likely to recapitalize Banco Comercial, in
which case the ratings will probably be maintained at the current
level.  If the recapitalization fails to occur, the ratings will
probably be lowered further.

With total assets of US$2.3 billion and equity of US$174 million
as of Sept. 31, 2001, Banco Comercial is the largest Uruguayan
private-sector bank. It maintains 50 full-service branches
nationwide.  The bank is engaged mainly in commercial banking to
individuals and to small and midsize companies.  Its operations
are primarily domestic, with about 80% of its loans and 90% of
its deposits to local customers.  The bank continues to enjoy a
strong competitive position as the country's largest private
commercial bank, with a leading market share among private banks
in terms of both total loans and domestic deposits.  However,
even if recapitalized, recent events have damaged the bank's
reputation and continuity of management, which will take time to


                                       TO          FROM
Banco Comercial S.A.
      Counterparty credit ratings      BB-/B       BB+/B
      CDs                              BB-/B       BB+/B
      Senior unsecured debt            BB-         BB+

          Cristian Krossler, Buenos Aires

          Gabriel Caracciolo, Buenos Aires

          Roger B. Taillon, New York

GALICIA URUGUAY: Uruguayan Central Bank Rules Out Bailout
Banco Galicia Uruguay SA, the local unit of Argentina's largest
private bank, can't expect financial assistance from Uruguay's
Central Bank, according to a report released by Reuters.

Uruguay's Central Bank President Cesar Rodriguez Batlle announced
Thursday that he has no plans to provide funds to bailout Galicia
Uruguay as he considers it an "offshore" bank and therefore
undeserving of central bank aid.

"The conditions just aren't there for the (Uruguayan Central
Bank) to act as a lender of last resort," Rodriguez Batlle said.
"That is not possible."

Uruguay's Central Bank on Wednesday suspended activity by the
bank, which is wholly controlled by Argentina's Banco Galicia y
Buenos Aires SA (GAL). The suspension for 90 days came after
US$500 million, or a third of the bank's deposits, were

Banco Galicia's depositors in Uruguay pulled funds on concern the
bank would collapse after Argentina defaulted on US$95 billion of
bonds, seized deposits and devalued its currency, analysts said.


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
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are $25 each.  For subscription information,
contact Christopher Beard at 240/629-3300.

* * * End of Transmission * * *