TCRLA_Public/020227.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

            Wednesday, February 27, 2002, Vol. 3, Issue 41

                           Headlines



A N T I G U A   &   B A R B U D A

LIAT: Workers Brace For Another Round Of Lay-offs


A R G E N T I N A

BANCO GALICIA: Govt. Denies Bailout; Turns To Creditors For Help
BANCO GALICIA: S&P Issues Comments On Debt Restructuring
BGN: Dresdner Faces EUR80-Mln Loss In Argentine Pullout
CAMUZZI ARGENTINA/GAS PAMPEANA/SODIGAS PAMPEANA: S&P Cuts Rating
EDENOR/EDESUR/TRANSENER: S&P Drops Ratings After Govt. Decree
ENERSIS: Devaluation, Recession To Cost US$100 Mln
ENRON: Azurix To Return Water-Sewage Concession To Buenos Aires
GAS NEA: Calls In The Receivers With US$55M In Bank Debt
REPSOL YPF: Dealing With Protesting Unemployed Workers
TGN: S&P Cuts Ratings on IFC Trust I, Trust II Certificates


B E R M U D A

GLOBAL CROSSING: Neiman, Garland Files Class Action Suit
GLOBAL CROSSING: Complications May Lead To Liquidation


B R A Z I L

CBS PREVIDENCIA: CSN Under Fire Due To Deficit
VARIG: GE Proposes Plan To Help Reduce Costs, Cut Losses


D O M I N I C A N   R E P U B L I C

AES EDE ESTE: Wants Government To Continue Providing Subsidies


M E X I C O

ISPAT MEXICANA: Extends Expiration Date for Exchange Offer
SCOTIABANK QUILMES: Debt Restructuring Won't Affect S&P Rating


T R I N I D A D   &   T O B A G O

BWIA: To Finalize Restructuring Plan Friday
CDA: Seeks Government Bailout On US$12M Loan
KMART: Sub-contractors Terminate Project On Money Woes
NUCOR: Iron Carbide Sends NGC Proposal To Restart Failed Plant


     - - - - - - - - - -


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

LIAT: Workers Brace For Another Round Of Lay-offs
-------------------------------------------------
David Stuart, director of Marketing at Liat, announced that the
regional airline would soon begin its second round of job cuts
within a year, according to a report released by the Trinidad
Guardian.

"Our staff numbers have gone down by about 25 percent, but we
need to go down another 15 percent," Stuart said.

Stuart said in Barbados, 32 of its employees were offered
severance packages, and already have been employed by the
handling company that serviced Liat in that island.

In Antigua, where Liat is headquartered and employment is the
highest, workers already have opted for the voluntary packages.

Liat is currently in negotiations for a joint venture with
another company that will provide ground services to the airline
and other carriers.

In 2001, Liat issued a EC$30-million bond in Barbados to raise
money to offer severance packages for those employees who took
voluntary retirement and to purchase two second-hand Dash 8 300
aircraft.

These two planes will join Liat's fleet in May and will coincide
with the launch of the Company's new colors.

In its efforts to be competitive, Liat also announced a new four-
level fare structure.



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

BANCO GALICIA: Govt. Denies Bailout; Turns To Creditors For Help
----------------------------------------------------------------
Argentina's third largest bank, Banco de Galicia y Buenos Aires
SA, turned to private creditors after the government refused its
bailout proposal.

Galicia executives traveled to the U.S. and Europe to negotiate
with international banks to convert about US$1.1 billion loans
into company shares.

Among the creditors that are being asked to swap loans into
Galicia shares to bail out the bank are J.P. Morgan Chase & Co.
and Standard Chartered Plc.

Galicia executives were also expected to meet with other creditor
banks, including Barclays Plc, Banco Santander Central Hispano SA
and Banco Bilbao Vizcaya Argentaria SA.

Analysts, however, believe Galicia may have a hard time
convincing private creditors to help it. J.P. Morgan Chase and
other international banks have already set aside billions of
dollars to cover bad loans to Argentina and Enron Corp.

"It's an open question whether any bank would be willing to do
this," said Jeanne del Casino, an analyst with Moody's Investors
Service.

The Argentine government turned down Galicia's proposal last week
to convert some of Galicia's more than ARS2 billion of central
bank loans into shares.

"The Economy Ministry fundamentally didn't like the idea too much
and prefers other alternatives that are more purely with the
private sector," said Galicia board member Daniel Llambias.

With 260 branches across Argentina, Galicia has seen deposits
fall by ARS1.2 billion, or a fifth of its total, since December
as the country defaulted on US$95 billion of bonds and devalued
the peso. The bank lost ARS2.1 billion of deposits between early
July and November, according to central bank documents.

CONTACTS:

BANCO DE GALICIA Y BUENOS AIRES
Teniente General Juan D. Per>n 456, Piso 3
1038 Buenos Aires, Argentina
Phone: +54-11-4343-7528

J.P. MORGAN CHASE & CO.
270 Park Avenue
New York, NY 10017
Phone: (212) 270-6000
Fax: (212) 270-1648
Contacts:  William B. Harrison, Jr., Chairman/CEO/
                                     Chairman of the Exec.Com.
           William H. McDavid, Legal
           William J. Moran, Audit

STANDARD CHARTERED PLC
1 Aldermanbury Sq.
London EC2V 7SB, United Kingdom
Phone: +44-20-7280-7500
Fax: +44-20-7280-7791
http://www.standardchartered.com
Contacts:  Patrick J. Gillam, Chairman
           Mervyn Davis, Group Chief Executive
           Peter N. Kenny, Group Executive Director
                           Finance, Corporate Treasury,
                           Taxation, Corporate Governance
                           in the UK


BANCO GALICIA: S&P Issues Comments On Debt Restructuring
--------------------------------------------------------
Banco de Galicia y Buenos Aires (SD/--/--), an Argentine bank,
has started a round of contacts with its international creditors
to restructure part of its foreign currency debt, and, if
possible, to convert this debt to capital instruments. In the
past three months, the bank has been sustaining large deposit
withdrawals, which it has been substantially funding with
Argentine Central Bank liquidity facilities. Banco Galicia
remains one of the largest creditors of the Argentine federal and
provincial governments. These actions will not impact Standard &
Poor's counterparty credit ratings on the bank, which indicate
that it is already in default on certain obligations.

CONTACT:  Standard & Poor's
          Gabriel Caracciolo
          Tel. +54-114-891-2100


BGN: Dresdner Faces EUR80-Mln Loss In Argentine Pullout
-------------------------------------------------------
German bank Dresdner Bank AG, a subsidiary of insurance group
Allianz, expects to lose some EUR80 million from its involvement
in the Argentinean bank Banco General de Negocios (BGN),
according to an article released by the Financial Times.

Of the total amount, Dresdner Bank has had to write off EUR40
million alone on the book value of its 25 percent stake in BGN.

A spokesman for Dresdner Bank declined to comment on the figures
but said its Latin American unit Dresdner Bank Lateinamerika had
made "sufficient provisions" for BGN in its 2001 financial
accounts. Dresdner would take legal steps to recover its losses,
the spokesman added.

Credit Suisse Group and J.P. Morgan Chase & Co. said last week
that they planned to leave BGN's management board which is being
investigated for allegations of money laundering.

CONTACTS:  BANCO GENERAL DE NEGOCIOS SA
           Esmeralda 120
           Capital Federal 1035
           Buenos Aires, Argentina
           Phone: 011-4394-3003
           Fax: 011-4320-6138
           Email: interbank@bancobgn.com
           URL: http://www.bancobgn.com

           CREDIT SUISSE GROUP
           P.O. Box 1
           CH-8070 Zrich
           Tel. +41 (1) 212 16 16
           Fax. +41 (1) 333 25 87
           Contact: Lukas Muehlemann, chairman & CEO

           J.P. MORGAN CHASE & CO.
           Investor Relations
           J.P. Morgan Chase & Co.
           270 Park Avenue
           New York, NY 10017-2070
           (1-212) 270-6000
           URL: www.jpmorganchase.com

           DRESDNER BANK LATEINAMERIKA AG
           Neuer Jungfernstieg 16
           20354 Hamburg, Germany
           Tel.:   (+49 40) 3595-0
           Fax:   (+49 40) 3595 3314
           Telex:   214 236-0 dl d
           S.W.I.F.T. DRES DE HL
           E-Mail:   public-relations@dbla.com


CAMUZZI ARGENTINA/GAS PAMPEANA/SODIGAS PAMPEANA: S&P Cuts Rating
----------------------------------------------------------------
S&P downgraded its local currency and foreign currency ratings on
gas distributors Camuzzi Argentina, Camuzzi Gas Pampeana and
Sodigas Pampeana to 'CCC-' from 'CCC'.

The action follows the February 12 government decree that gives
the economy ministry 30 days to create a commission to
renegotiate concession contracts and a further 120 days for the
package to be presented to President Eduardo Duhaulde.

S&P said this further increases pressure on already weakened
utilities' creditworthiness.

Uncertainty stems not only from long negotiation time, but also
what the negotiations will lead to, with the effects of inflation
on rates and the pass through of dollar costs to clients key
issues along with
service quality requirements.


EDENOR/EDESUR/TRANSENER: S&P Drops Ratings After Govt. Decree
-------------------------------------------------------------
Credit rating agency Standard and Poor's lowered the local
currency ratings on Argentine energy utilities Transener, Edesur
and Edenor to `CC' from `CCC-` and maintained a negative outlook.

S&P's CC rating is the company's lowest before default. The
foreign currency rating on all of these entities is 'SD'
(selective default).

The downgrades follow the February 12 government decree that
gives the economy ministry 30 days to create a commission to
renegotiate concession contracts and a further 120 days for the
package to be presented to President Eduardo Duhaulde. This
further increases pressure on already weakened utilities'
creditworthiness, S&P said.

Uncertainty stems not only from long negotiation time, but also
what the negotiations will lead to, with the effects of inflation
on rates and the pass through of dollar costs to clients key
issues along with  service quality requirements.


ENERSIS: Devaluation, Recession To Cost US$100 Mln
--------------------------------------------------
Enersis, Latin America's largest listed electricity group,
announced that devaluation and current recession conditions would
cost it more than US$100 million, or 19 percent in Argentina this
year, reports the Financial Times.

The announcement came after investors and stock market regulators
applied increased pressure on the company to reveal the impact of
the Argentine situation on its financial condition.

However, about 30 percent, or US$1.2 billion, of 2001 sales came
from Argentina, where Enersis controls Edesur, one of the main
distributors in Buenos Aires, and a number of generation
companies.

Enersis shares on Friday hit an all-time low of CLP124.5, down an
additional 1.58 percent from Thursday's close and more than 30
percent off for the year.

The company described the fall as "exaggerated" and "bearing no
relation with eventual losses in the worst of possible
scenarios".

However, analysts say that group profits for 2001, which will be
reported this week, will be down heavily from the US$157-million
posted for 2000 after losses in the fourth quarter.

Apart from falling demand, unpaid bills and electricity theft in
Argentina, Enersis is likely to be battered this year by the
conversion of dollar-linked tariff contracts into pesos, which
are now worth less than half the US currency.

This means that input costs such as fuel and plant will
effectively double overnight, destroying margins and eventually
forcing a write-down on all assets.

Dollar-denominated debts, too, become harder to service. This
prompted Moody's last week to mark down Edesur's long-term
foreign currency debt rating to `CC,' the lowest notch before
default.

However, Enersis said on Friday it remained confident that
measures announced ahead of planned talks with the Argentine
government would allow it "to reverse the negative impact on cash
flow within a reasonable period of time".


ENRON: Azurix To Return Water-Sewage Concession To Buenos Aires
---------------------------------------------------------------
Officials of Azurix, an Argentine unit of bankrupt Enron Corp.,
revealed that the waterworks subsidiary will hand back a water
and sewage concession in Argentina's most populous province on
Friday citing breach of contract.

"We cease operations on March 1 and return the concession to the
province of Buenos Aires because after our analysis we concluded
the conditions of the contract were not met," suggested an Azurix
official.

The waterworks subsidiary Azurix had signed a contract with the
Buenos Aires province to provide water and sewage services to
some 2.5 million people. Azurix won the concession in 1999 with a
US$438-million bid to provide drinking water and sewers to 72
cities in Buenos Aires province for 90 years.

"We paid US$438 million and invested US$200 million. The Company
was seeking small compensation, about a third from the province
of Buenos Aires, but it did not happen," the official said.

The move was largely viewed as the first step toward declaring
bankruptcy, and comes amid a four-year recession and deep
economic turmoil in South America's second-largest economy.


GAS NEA: Calls In The Receivers With US$55M In Bank Debt
--------------------------------------------------------
Argentine gas distributor Gas NEA called in the receivers after
racking up debts of US$55 million with banks abroad and ARS3
million within the local market.

In 2001, the Company operating in 5 provinces in the northeast of
Argentina, posted earnings of ARS10 million and losses of ARS8
million.

Gaz de France, which controls 64 percent of Gas NEA, announced a
reduction of its businesses in Argentina, and its intention to
pay US$50 million to leave the gas operator.

Gas de France other partners in the Argentine utility are Pan
American (16 percent) and the Government of Entre Rios province
(20 percent).


REPSOL YPF: Dealing With Protesting Unemployed Workers
------------------------------------------------------
Groups of unemployed workers blocked access to 15 refineries,
distilleries and offices belonging to Repsol YPF in different
areas of Argentina. The disgruntled employees are demanding that
the Spanish-Argentine company generate new jobs.

The protests reportedly hampered normal operations of the oil
company's facilities, but occurred without incident and were kept
under control by a significant police contingent.

Organizations of unemployed workers have been conducting a
"resistance strategy" for two weeks now to demand that Repsol YPF
create "55,000 genuine jobs."

Oil companies in Argentina are at odds with the government over
the its recent 20-percent tax on hydrocarbon exports.

Argentine President Eduardo Duhalde's administration wants to
keep fuel prices from rising sharply as a result of the
devaluation of the peso, which has lost more than half its value
against the dollar since the beginning of this year.

Last Friday, the Repsol YPF group announced a 2.5-percent average
increase in fuel prices to the public, a move which came after
Shell and Esso in Argentina announced increases of between 3.4
and 6 percent for the different grades of gasoline they offer to
consumers.

Repsol YPF estimates it will have to pay an additional EUR500
million (US$430 million) in taxes over the five years the new
taxes are expected to be in effect.

CONTACTS:  REPSOL YPF
           Alfonso Cortina De Alcocer, Chairman & CEO
           Ramon Blanco Balin, Vice Chairman
           Carmelo De Las Morenas Lopez, CFO

           Their Address:
           Paseo de la Castellana 278
           28046 Madrid, Spain
           Phone   +34 91 348 81 00
           Home Page: http://www.repsol.com

           or
           Av. Roque S enz Pe a, 777.
           C.P 1364. Buenos Aires
           Argentina


TGN: S&P Cuts Ratings on IFC Trust I, Trust II Certificates
-----------------------------------------------------------
S&P lowered its ratings on the certificates of TGN IFC Trust I
and TGN IFC Trust II to 'D' from double-'C' following the
nonpayment by the underlying obligor, Transportadora de Gas del
Norte S.A. (TGN), of the monthly principal due on both
transactions on Feb. 23, 2002.

On that date, TGN only made the monthly interest payments.
Monthly payments are due to International Finance Corp. (IFC) for
payment on the A and B loans. Payments on the IFC B loans are
used to back payments on certificates issued by TGN IFC Trust I
and TGN IFC Trust II.

The payment default reflects the strong negative impact that
changes in the tariff-setting mechanism, which followed the
Argentine peso devaluation, had on TGN's cash flow.

As part of these changes, the government "pesified" the company's
tariffs without allowing for any compensating adjustments, which,
combined with the lack of liquidity in the financial system,
worsened the company's operating cash flow.

Both transactions, which benefit from IFC's preferred creditor
status umbrella, were downgraded on Jan. 29, 2001, to double-'C'
from triple-'C'-minus following TGN's failure to make its loan
payments to IFC in January. Despite the missed payments,
investors of the trust certificates received their due payment
from an offshore LOC supporting these deals.

Default on principal was not triggered by government payment
restrictions on convertibility, transfer, and debt payments, as
those payments relating to preferred creditor institutions have
been allowed by Central Bank through Comunicacion "A" 3471. This
regulation clears up past ambiguities involving company payment
transfers to multilateral agencies and allows private companies
to make foreign currency-denominated debt payments to those
agencies without previous authorization from the Central Bank,
such as the recent interest payments made to IFC by TGN.

TGN IFC Trust I issued the certificates in August 1996 in the
amount of US$154.5 million. The balance of the certificates is
now US$115.9 million. The missed principal payment on Feb. 23,
2002, was US$1.081 million and the interest payment made was
US$0.9 million. The certificates are due to mature in July 2008.

The TGN IFC Trust II certificates were issued in September 1996
for US$60.5 million. The outstanding amount of the certificates
is US$45.4 million. The recently missed principal payment was
US$0.42 million and the interest payment made was US$0.36
million. These certificates are also due to mature in July 2008.

For more information, please contact the following analysts:
Jorge Solari and Juan De Mollein, Structured Finance Buenos
Aires; Diane Audino, Structured Finance New York; and Lidia
Polakovic and Matias Badia, Industrial Ratings Buenos Aires.

CONTACT:  STANDARD & POOR'S
          Jorge Solari, Buenos Aires (54) 114-891-2114
          Juan Pablo De Mollein, Buenos Aires (54) 114-891-2113
          Diane Audino, New York (1) 212-438-2388
          Lidia Polakovic, Buenos Aires (54) 114-891-2130
          Pablo Lutereau, Buenos Aires (54) 114-891-2125



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

GLOBAL CROSSING: Neiman, Garland Files Class Action Suit
--------------------------------------------------------
A class action lawsuit was filed in the United States District
Court for the Southern District of New York on behalf of all
purchases of shares of Global Crossing, Ltd. (NYSE: GX) common
stock between January 2, 2001 and October 4, 2001, inclusive (the
"Class Period") and seeks damages for violations of federal
securities laws on behalf of all investors who bought Global
Crossing Ltd shares during the "Class Period."

The complaint charges certain of Global Crossing's officers and
directors with violations of the Securities Exchange Act of 1934.
The complaint alleges that during the Class Period defendants
improperly recorded revenue on the Company's bandwidth trading
contracts, in violation of GAAP, thereby substantially
overstating reported earnings. It also alleges that while the
Company's shares were artificially inflated, certain individual
defendants engaged in heavy insider trading, receiving proceeds
of over $135 million for their personal shares.

Plaintiff seeks to recover damages on behalf of all purchasers of
Global Crossing shares during the class period of between January
2, 2001 and October 4, 2001, inclusive.

CONTACT:  THE NEIMAN LAW FIRM, Brooklyn
          Jeffrey Neiman, 866/539-3788
          Email: JeffreyNeiman@Aol.Com
          Tel. 718/677-1430
          Fax. 718/258-2937


GLOBAL CROSSING: Complications May Lead To Liquidation
------------------------------------------------------
Experts believe that complications arising from the bankruptcy
proceedings of Global Crossing may result to perhaps the least
desirable outcome for creditors: the Company's liquidation --
with its assets auctioned off to the highest bidders, the New
York Times says.

A major obstacle involves the competing interests of Global
Crossing's bank lenders, consisting of a group of about 20 Wall
Street firms led by J. P. Morgan Chase, and the Company's other
creditors.

Global Crossing, which is based in Bermuda and has executive
offices in Beverly Hills, California, listed US$22 billion in
assets and US$12 billion in debt when it filed for bankruptcy
protection on Jan. 28, making it the fourth largest filing in
U.S. history.

The company owes $2.5 billion to banks, which are in the unusual
position of having to line up with other creditors because the
banks opted for stock instead of secured assets as collateral for
loans, says the Times.

"The complexity of the corporate structure at Global Crossing is
such that the banks do not have first grab at everything,"
according to one bankruptcy expert who has been monitoring the
proceedings. "This is going to be a very complicated recovery
process."

A spokesman for the Company, Daniel Coulter, however expressed
confidence that it could emerge from bankruptcy proceedings
without liquidating.



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

CBS PREVIDENCIA: CSN Under Fire Due To Deficit
----------------------------------------------
The Brazilian government last Wednesday said it would take over
CBS Previdencia, Cia. Siderurgica Nacional's (CSN) employee
pension fund, because of a BRL435-million (US$179 million)
deficit.

However, on Friday, the government suspended its intervention of
CBS Previdencia following the a presentation and actuarial
evaluation of its pension benefits.

CSN, Brazil's second-largest steelmaker, and CBS Previdencia were
given 120 days to review ways to cover the shortfall.

This series of events has left market analysts confused about
what is the actual financial state of not only the pension fund,
but also CSN itself.

"CSN was under pressure last week, but CSN already had a plan to
amortize the amount over 30 years," said Mario Pierry, Latin
America steel analyst with JP Morgan Securities. Pierry has a
"market outperform" rating on CSN.

Much of the fund's deficit dates from before the Brazilian
government sold the steelmaker in 1993.


VARIG: GE Proposes Plan To Help Reduce Costs, Cut Losses
--------------------------------------------------------
Brazil's flagship airline Varig, which has been hampered by slow
ticket sales and rising operating costs since the September 11
attacks, may implement a plan proposed by GE in an effort to cut
costs and losses. The plan reportedly consists of a number of
items designed collectively to lead to a 45-percent reduction in
costs.

The buying division and the area dealing with third party
services have been consolidated, as well as the other areas
divided between Varig's three companies, Varig, Rio-Sul and
Nordeste. The Company is also beginning to institute electronic
ticketing.

Already, Varig has renegotiated its contracts with aircraft
leasing companies and has laid off 1,700, or 10 percent, of its
workforce.

The next step is to take its demand for decreased taxation for
the sector to the federal government.

VARIG CONTACTS:  VARIG Brazilian Airlines, Miami
                 Jeff Kriendler, 305/866-2115
                 email: jkriendler@aol.com

                 Legal Department:
                 Rua 18 de Novembro nr. 800 Navegantes
                 Zip : 90240-040
                 City : Porto Alegre / RS - Brazil
                 Telephone numbers: (51) 358-7039/7040
                                   (51) 358-7010/7042

                 INDEPENDENT ACCOUNTANTS
                 Arthur Andersen S/C
                 Rua Alexandre Dumas 1981
                 Cep: 04.717-906 - Centro / Sao Paulo / S P-
                 Brazil
                 Tels.: (11) 5504-8200
                 Fax:  (11) 5504-8373

                 INVESTOR RELATIONS MANAGER/STOCKHOLDER SERVICES
                 Leir s  Stortti
                 E-mail: leir.stortti@varig.com.br
                 Av. Almte. Silvio de Noronha, n  365 -
                 Bloco "A" - s/416
                 Centro - Rio de Janeiro - RJ
                 Cep.:  20021-010
                 Tels.: (21) 3814-5401/5402/5403/5415
                 Fax:  (21) 3814-5543



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

AES EDE ESTE: Wants Government To Continue Providing Subsidies
--------------------------------------------------------------
AES's Dominican Republic unit AES Distribuidora del Este (AES Ede
Este) must now fend for itself as support from its parent company
in the United States has been curtailed by AES's own financial
troubles.

As a result, AES Ede Este is now pressuring the government to
continue subsidizing power distribution in slum areas where most
consumers do not pay for the service.

Power distribution was privatized with the understanding that the
companies would likely sustain losses over a three-year period
while they signed on consumers in these areas.

Now the companies want to continue blacking out entire
neighborhoods, affecting both those who pay their monthly power
bills and those who do not.

Reports have it that the Company's decision to step up the hours
of power outages in these areas comes at a time when the
government is reviewing a controversial decision. A recent
resolution established an illegal toll in favor of the
distributors and against large companies that had been authorized
to purchase power directly from generators.

AES Ede Este complains of losses of more than DOP37.5 million per
month for power delivered but not paid for in the barrios.



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

ISPAT MEXICANA: Extends Expiration Date for Exchange Offer
----------------------------------------------------------
Ispat International N.V. ("Ispat"), (NYSE: IST US; AEX: IST NA),
today announced that Ispat Mexicana, S.A. de C.V. ("Imexsa"),
Ispat's Mexican operating subsidiary, has extended its exchange
offer for all outstanding 101/8% Senior Structured Export
Certificates due 2003 of Imexsa Export Trust No. 96-1 (the
"Senior Certificates"). The exchange offer will now expire at
5:00 p.m., New York City time, on February 28, 2002, unless
otherwise extended or terminated by Imexsa (the "Expiration
Date"). The exchange offer was originally scheduled to expire at
5:00 p.m., New York City time, on February 22, 2002. Under the
terms of the exchange offer, Imexsa has offered to exchange its
101/8% Senior Notes due 2008 (the "Senior Notes") for Senior
Certificates validly tendered and accepted for exchange. The
Senior Notes will be fully and unconditionally guaranteed by
Ispat on a senior unsecured basis.

The exchange offer is conditioned upon the holders of not less
than 95% of the outstanding principal amount of Senior
Certificates having validly tendered and not withdrawn their
Senior Certificates prior to the Expiration Date and upon the
other terms and conditions set forth in Imexsa's Offering
Memorandum and Consent Solicitation Statement dated January 24,
2002.

In connection with the exchange offer, Imexsa is soliciting
consents from holders of Senior Certificates to amend the
agreements governing the Senior Certificates. Holders tendering
their Senior Certificates in the exchange offer must also deliver
consents. Consents may not be withdrawn after the earlier of (i)
the Expiration Date, or (ii) such time as the requisite consents
required to amend the agreements governing the Senior
Certificates are received.

Dresdner Kleinwort Wasserstein is the dealer manager and
solicitation agent and D.F. King & Co., Inc. is the information
agent for the exchange offer and consent solicitation. Requests
for documentation should be made to D.K. King & Co., Inc. at
(800) 847-4870. Questions regarding the transaction should be
directed to Dresdner Kleinwort Wasserstein at (212) 969-2700.

This announcement is not an offer to purchase or a solicitation
of consents with respect to any Senior Certificates or an offer
of Senior Notes for sale. Securities may not be offered and sold
in the United States absent registration or an exemption from
registration. Any public offering of securities to be made in the
United States must be made by means of a prospectus that may be
obtained from the issuer or selling security holder and will
contain detailed information about the company and management, as
well as financial statements.

CONTACT:  ISPAT INTERNATIONAL LIMITED
          Annanya Sarin, Head of Communications
          Tel. +44-20-7543-1162, or +31-10-404-6738
                     or
          T. N. Ramaswamy, Director, Finance
          Tel. +44-20-7543-1174

          CITIGATE DEWE ROGERSON FOR ISPAT INTERNATIONAL LIMITED
          John McInerney, Investor Relations
          Tel. +1-212-419-4219


SCOTIABANK QUILMES: Debt Restructuring Won't Affect S&P Rating
--------------------------------------------------------------
Standard & Poor's said Friday that Scotiabank Quilmes S.A.'s
announcement that its restructuring of three floating notes will
have no effect on the bank's rating. The bank announced today
that in light of the difficult and uncertain economic
environment, it started the process of restructuring its unpaid
US$55 million zero coupon bond (Series O) together with two
additional series for US$55 million (Series N) and US$35 million
(Series C), due today and on June 14, 2002, respectively. The
terms of the restructuring have not yet been announced. On Dec.
3, 2001, Standard & Poor's lowered its counterparty credit
ratings on several Argentine banks to Selective Default ('SD')
following the imposition of limitations on cash withdrawals of
bank deposits. CDs were downgraded to single-'D' from triple-'C'-
plus, indicating that, according to Standard & Poor's
methodology, the banks failed to return deposits under the
conditions originally contracted. At that time, the ratings on
Scotiabank Quilmes S.A. were downgraded to -'SDpi' from triple-
'C'-plus-pi.

CONTACTS:  STANDARD & POOR'S, Buenos Aires
           Cristian Krossler
           Tel. +54-114-891-2100

           SCOTIABANK QUILMES
           Alan Macdonald
           Chief Executive Officer
           Phone: (54-11) 4338-8000
           Fax: (54-11) 4338-8033
           Mail: 6th Floor
           Gral. J.D. Peron 564
           (C1038AAL) Buenos Aires

           Roy D. Scott
           Vice-President and Managing Director, Latin America
           Phone: (54-11) 4394-8726
           Fax: (54-11) 4328-1901
           Mail: P.O. Box 3955
           C1000WBN Correo Central
           Buenos Aires, Argentina
           E-mail: scotiarep@sinectis.com.ar

AUDITORS:  KPMG LLP
           Av. Leandro N. Alem 1050, Piso 2
           C1001AAS-Buenos Aires, Argentina
           +54 (11) 4316 5700

           PRICEWATERHOUSECOOPERS LLP
           Buenos Aires Office
           Cerrito 268
           C1010AAF Buenos Aires
           Mail Address :
           Casilla de Correo Central 896
           C1010AAF Buenos Aires
           Argentina
           Telephone: [54] (11) 4370 6000, 4370 6700, 4370 6900
           Telecopier: [54] (11) 4370 6800, 4370 6339

           Cordoba Office
           PricewaterhouseCoopers
           Boulevard Chacabuco 492
           X5000IIR C>rdoba
           Telephone: [54] (351) 420 2300
           Telecopier: [54] (351) 420 2332



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

BWIA: To Finalize Restructuring Plan Friday
-------------------------------------------
The management of Trinidad national airline BWIA is expected to
determine Friday which departments will be affected by the staff-
reduction plan, says the Trinidad Express.

Not surprising, given the delicate nature of the situation, CEO
Conrad Aleong is keeping actual figures close the vest.

After grappling with the industry chaos for five months, BWIA
abandoned its early optimism to announce that it had no choice
but to scale back operations. Even with staff cuts, its bottom
line remains troubled at best.

In percentage terms, more of BWIA's 300 management positions will
be made redundant, Aleong estimated. A smaller percentage of the
airline's 2,241 general staff will lose their jobs. Aleong
admitted that for a small airline like BWIA, 300 managers may be
top-heavy.

Aleong acknowledged that the airline requires trained labor and
any job loss hurts the economy. However, BWIA must get its cost
structure in line or go belly up, he explained.

"This year is going to be about survival," he said.

BWIA, which operates 15 aircraft to Caribbean destinations and
North America, emerged from three quarters of profitability,
posting a US$7.1-million after tax profit then plummeted into the
post-September 11 downturn.

Even a cash injection by the government did no more than run
BWIA's operations for a few days, he added.

BWIA's final financial numbers will be out by March but Aleong
already knows how tough it will be.

"Everything is touch and go," he said. "Our plans are all about
survival." What this means is that the airline is positioning
itself for a major overhaul, which includes reorganizing and
maximizing technology.


CDA: Seeks Government Bailout On US$12M Loan
--------------------------------------------
Chaguaramas Development Authority (CDA) has requested the
government intervention on a US$12-million loan it took out in
1999 to prepare for the Miss Universe pageant, Planning and
Development Minister Dr Keith Rowley confirmed in a Trinidad
Express report.

Failure to pay the loan could result in confiscation of the
Chaguaramas Convention Center and nine acres of land surrounding
it by the Republic Bank, CDA's creditor.

Republic Bank sources explained that the CDA had borrowed the
money on the basis that, after the pageant, it expected the
entire premises including the hotel and convention center to be
rented by the Gillette Group of Companies.

The Gillette group did rent the hotel and convention center as it
maintains a call center in Chaguaramas. But, last month, it
pulled out of the hotel citing heavy losses and blaming a
continued row with Bougainvillea Restaurant. The restaurant is
apparently contracted to provide food and beverage for the hotel.

Up to now, the CDA has not been able to find another partner to
rent or lease the hotel.

"I don't have sufficient information about what has been
happening at the CDA and I have asked the new chairman, Mr.
Renwick Nickie, to produce a report for me as soon as he gets his
instruments of appointment so I can deal with the situation in a
more holistic way," Rowley said.


KMART: Sub-contractors Terminate Project On Money Woes
------------------------------------------------------
Sub-contractors have pulled the plug on the US$25-million Super
Kmart in Trinicity, 12 miles east of Trinidad's capital Port-of-
Spain, due to money problems.

Conrad Sabga, chief executive officer of Beaver Construction Ltd
(BCL), the firm, which was awarded the contract for the project,
admitted that the sub-contractors hired by his company were owed
several million dollars.

"Some of our sub-contractors are being very cautious about
expending any further efforts on the project until specific
guarantees can be given," Sabga said.

"If anybody should be concerned it should be Beaver. I'm not
concerned...I'm very optimistic about Kmart resolving these
issues. I am doing everything in our power for the sub-
contractors," Sabga added.

"Most of them have been paid a significant portion of their money
and payment for the balance, which is a fraction of US$25-
million, is in the pipeline," he added.

Sabga said he was in daily contact with Kmart, adding that only
the internal refrigeration and dry works, like fittings and
partitions, were to be completed.

"The project is 80 percent complete. We were supposed to hand
over to the Kmart marketing people on April 1 and it was due to
open in June," Sabga revealed.

Kmart, the third-largest discount retail chain in the United
States, filed Chapter 11 bankruptcy proceedings on January 22.


NUCOR: Iron Carbide Sends NGC Proposal To Restart Failed Plant
--------------------------------------------------------------
Frank Stephens, president of Iron Carbide Holdings Ltd of
Colorado, USA, sent a proposal to the National Gas Company (NGC)
aimed at restarting Nucor's failed Iron Carbide Plant in Point
Lisas Industrial Estate, Trinidad. The failed Nucor project was
shut down in 1998 due to unending technical difficulties and a
depressed steel market.

Stephens said the plant's capabilities had not been utilized in
the right way and that given the chance, he can get it delivered.

Stephens boasted his company not only has the technological
capacity and know-how to get the US$60 million Nucor plant
restarted but can "make a profit in the current depressed iron
industry".

All Iron Carbide would need is to raise about US$25 million to
re-open the plant whose assets were bought by NGC late last year.

In return for his company's plan to make Nucor viable, Stephens
says all it wants is royalties from the high-quality iron carbide
produced at the facility.

Stephens revealed his company had wanted to buy Nucor but was not
affiliated with the right financial support and it was snapped up
by the NGC.



               ***********


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.


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