TCRLA_Public/020305.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

            Tuesday, March 5, 2002, Vol. 3, Issue 45



BANCO GALICIA: Banco Hipotecario, HSBC Head To Head Over Control
EL SITIO: Parent Denies Imminent Closure
ENRON: Seeks To Recoup US$500 Mln In Azurix Investments
REPSOL YPF: Set Aside EUR2.73 Bln For Argentina In FY 2001


DELPHI INTERNATIONAL: Sets Dates For Liquidation Distribution
GLOBAL CROSSING: Fleet Bank Objects To $750M Offer
GLOBAL CROSSING: Defers Release Of 4Q, FY 2001 Results
GLOBAL CROSSING: Contract Suggests Political Influence
GLOBAL CROSSING: Former Exec Drags 13 Companies Into Lawsuit
GLOBAL CROSSING: Appointment To Audit Committee Questioned
GLOBAL CROSSING: Another Bidder Joins The Fray
GLOBAL CROSSING: Zwerling, Schachter Announces Class Action Suit


EMBRAER: Declares Preferred Dividend to Common Shares
EMBRATEL: May Sell Non-strategic Assets To Raise Funds
THE JPM COMPANY: Files Ch. 11 Petition; Selling Brazilian Ops
THE JPM COMPANY: Company Profile
VARIG: To Put Larger Planes On NY-Sao Paulo, Miami-Manaus Routes


DISPUTADA: Codelco Abandons Purchase Plans
ENERSIS: To Cut Investments By 9% This Year Amid Argentine Woes


AVIANCA-ACES: Merger, Integration Completed
TELECOM: Loses Almost US$19 Mln Due To FARC Attacks
VALORES BAVARIA: Blames Avianca For Its 4Q Loss


BANCA QUADRUM: IPAB Commences Liquidation Process
GMM: Fitch Cuts Ratings To 'B'; Watch Negative
GRUPO TELEVISA: Issuing New Bonds To Finance Debt Swap
HYLSAMEX: To Release Final Debt Restructuring Plan By March-End
ISPAT MEXICANA: S&P Affirms `CC' on Export Trust No. 96-1 Certs

     - - - - - - - - - -


BANCO GALICIA: Banco Hipotecario, HSBC Head To Head Over Control
Besides Britain's HSBC Holdings Plc, U.K.'s largest bank,
Argentina's Banco Hipotecario is also looking to acquire a
controlling stake in Banco de Galicia y de Buenos Aires, reports

"Banco Hipotecario is fighting hand to hand with HSBC for control
of Banco Galicia. The deal will be determined on Wednesday," said
a source close to talks, who asked not to be named.

The financially troubled Grupo Financiero Galicia SA unit has
been pummeled by a run on deposits amid nationwide financial
chaos. The bank put up for sale a substantial part of its loan
portfolio to solve its liquidity problems, while Goldman Sachs is
seeking a possible buyer.

Meanwhile, recent reports also suggest that Galicia may have
found an investor to recapitalize its operations and hopes
foreign aid may come soon after provincial governors signed a
tax-sharing deal.

Argentina's government signed a tax-sharing deal last Wednesday
with most of its provinces after weeks of drawn-out talks. The
deal is essential for the bankrupt nation to win up to US$25
billion in vital IMF aid in part to shore up its ailing banks.

Analysts believe that Galicia needs a foreign owner or government
bailout to regain depositor confidence. A takeover would likely
depend on Argentina's government presenting a clearer plan to
rebuild the country's financial system after a devaluation and
US$95 billion debt default left banks with billions of dollars of
losses, they said. Already, international banks face billions in
losses from Argentine loans.

           Teniente General Juan D. Peron 456, Piso 3
           1038 Buenos Aires, Argentina
           Phone: +54-11-4343-7528

           151 Reconquista
           Buenos Aires, Argentina
           Phone: +54 011 4347 5546

           68 Upper Thames Street
           London EC4V 3BJ
           Phone:(44) 20 7336 9955/(44) 20 7336 9961

           GOLDMAN SACHS
           85 Broad Street
           New York, New York 10004
           Phone:(212) 902-1000(P)

EL SITIO: Parent Denies Imminent Closure
A spokesperson for Claxson denied rumors that the Spanish- and
Portuguese-language content provider is going to close its Web
portal El Sitio (

In a report released by Business News Americas, the spokesperson
announced that El Sitio will continue operating in home base
Argentina and elsewhere in Latin America.

"While it is true that there have been significant adjustments
affecting the staff of the Internet department for market and
strategic reasons, El Sitio's service continues to operate in
Argentina, Mexico, Chile, Uruguay and Brazil," the spokesperson

The restructuring process forms part of the migration of El Sitio
away from a horizontal portal toward an entertainment site that
will serve as a digital platform for Claxson's radio and TV
stations, the spokesperson added.

This is the second time in the last five months that Claxson has
publicly denied rumors over El Sitio's imminent closure.

El Sitio was hit hard by the April 2000 dotcom crash. Last
September, shareholders approved a merger with Ibero-American
Media Partners II Ltd (IAMP) to form Claxson Interactive Group
Inc, even though they only ended up with 20 percent of the new
company instead of 34 percent as originally agreed.

Claxson is an integrated provider of branded entertainment
content targeted to Spanish and Portuguese speakers around the
world. The company has a portfolio of popular entertainment
brands that are distributed over multiple platforms through
Claxson's combined assets in pay television, broadcast
television, radio and the Internet.

Claxson was formed through the merger of El Sitio and assets
contributed by the Cisneros Group and funds affiliated with
Hicks, Muse, Tate & Furst Inc. Headquartered in Buenos Aires,
Argentina, and Miami Beach, Florida, Claxson has a presence in
all key Ibero American countries and in the United States.

ENRON: Seeks To Recoup US$500 Mln In Azurix Investments
Enron Corp.'s water division is trying to recover about US$550
million it has invested in the water and wastewater systems in
the province of Buenos Aires, the Wall Street Journal reveals.

Enron's Argentine waterworks subsidiary Azurix won a 30-year
concession in June 1999 under which it would pay the province
US$439 million to operate its water system.

However, the company decided to return the concession to Buenos
Aires after its analysis showed that the conditions of the
contract were not met.

"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," according to an Azurix

Buenos Aires plans to operate the Company while preparing to call
a new international bidding round within six months. Government
officials assured that the change won't affect water supplies to
the 2.5 million Buenos Aires residents the Company currently

           100 King Street West
           P.O. Box 57159 Jackson Station
           Hamilton, Ontario
           L8P 4X1
           Phone: 888-776-7306
           Fax: 905-521-9613
           Stan Spencer,
           Senior VP, Marketing & Regional Operations
           Phone: 905-521-1988; 888-776-7306

           Phil Sidhwa, Regional Manager - Canada
           Phone: 905-521-1988; 888-776-7306

REPSOL YPF: Set Aside EUR2.73 Bln For Argentina In FY 2001
Spain's Repsol YPF SA, one of the world's top 10 oil companies,
revealed it provisioned EUR2.738 billion for the Argentine crisis
in 2001, reports AFX.

Repsol said it had allocated EUR1.29 billion from pretax profits
for 2001 to pay for new measures set for the oil sector in
Argentina, and also took a 1.45-billion-euro asset writedown.

Argentina accounts for about half of its business. Now that the
government unpegged the peso currency from the dollar and slapped
a 20-percent tax on oil exports in an attempt to pull itself out
of a crippling economic crisis, Repsol is taking steps to offset
the impact.

But the earnings slide and the provisions were widely predicted
by analysts, some of whom expressed a bullish outlook for a stock
that has slid 13 percent since January while the European energy
sector has gained 6 percent.

"They've delivered on their production target, and the disposals
are coming through," said analyst Doug Leggate of Commerzbank.
"Whatever way you look at it, Argentina is in the price now."

According to Repsol Chairman Alfonso Cortina, the firm planned to
speed up cost-cutting and trim investment this year in an attempt
to ease the burden of the Argentine economic crisis on its

"The economic environment in Argentina is still uncertain and in
this sense the Company cannot evaluate...the impact in any detail
as we would like," he said.

Repsol said its debt fell EUR3.84 billion in 2001 to end the year
at a net EUR16.56 billion. A large proportion of the debt stems
from its US$15 billion purchase of Argentine oil producer YPF in

           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:

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


DELPHI INTERNATIONAL: Sets Dates For Liquidation Distribution
In an official press release, Delphi International Ltd. (in
voluntary liquidation) (the "Company") (Nasdaq: DLTDF) announced
Friday that it has set a record date of March 8, 2002 (Record
Date"), for the purposes of determining those common shareholders
who shall be entitled to a liquidation distribution, which has
been determined by the liquidator of the Company to be in the
amount of $3.00 per outstanding common share. The Company expects
that the liquidation distribution will be made on or before March
22, 2002. The Company also announced that its common shares will
be de-listed from Nasdaq at the end of trading on March 8, 2002.
Finally, the Company announced that a Final General Meeting of
the Company will be held in Hamilton, Bermuda on March 28, 2002.

Delphi International Ltd. (in voluntary liquidation) is the
parent of Oracle Reinsurance Company Ltd. (in voluntary

CONTACT:  Colin O'Connor (Liquidator) of Delphi International

GLOBAL CROSSING: Fleet Bank Objects To $750M Offer
Fleet National Bank, one of the major creditors of Global
Crossing, has objected to the US$750-million buyout proposal
presented by the telecom firm, reports the Associated Press.

Fleet, which filed its objection Friday in U.S. Bankruptcy Court
in the Southern District of New York, suggested that the price is
too low. Additionally, Fleet stated in the filing that recent
revelations by the New York Times that two Global Crossing
directors, including chairman and founder Gary Winnick, secretly
invested US$25 million in a firm effectively controlled by
Singapore Technologies "suggest strongly that the Investment
Proposal may be tainted by collusion and self-dealing."

On January 28, Global Crossing presented a bankruptcy plan under
which Hutchison Whampoa of Hong Kong and Singapore Technologies
Telemedia would inject US$750 million for a 79 percent stake in
the Company. Creditors would receive the remaining 21 percent and
US$300 million in cash.

Fleet reasoned that because Global Crossing has more than US$600
million of cash on hand, the buyout price would amount to less
than US$150 million.

Fleet, in the filing, also objected to the termination and
expense reimbursements fees of US$50 million promised to
Hutchison and Singapore Technologies, which it said amounts to 33
percent of the net cash offered creditors.

Fleet, a subsidiary of FleetBoston Financial Corp., claims Global
Crossing owes it US$77 million.

GLOBAL CROSSING: Defers Release Of 4Q, FY 2001 Results
Under attack for alleged accounting improprieties, bankrupt
Bermuda and California-based voice and data carrier Global
Crossing Ltd. deferred the release of its fourth quarter and full
year 2001 results in order to complete the filing of its annual
report on Form 10-K, according to an article released by

Global Crossing, which was supposed to release the results
Tuesday, explained that it is still evaluating the appropriate
write-down of certain of its tangible assets. It also noted that
the accounting treatment of certain of its capacity transactions
is under investigation by an independent committee of its board
of directors, the U.S. Securities and Exchange Commission, and
the U.S. Attorney's Office for the Central District of

The Company said it expects revenue from continuing operations in
the fourth quarter to amount to about US$804 million, including
service revenue of about US$764 million. For the full year of
2001, the Company expects to report revenue from continuing
operations of about US$3.2 billion, including about US$3.1
billion in service revenue.

However, Global Crossing also said it expects to report a
"significant" net loss applicable to common shareholders for the
fourth quarter and for 2001. The Company said the 2001 loss will
reflect items previously reported during the first three
quarters, including restructuring charges of US$294 million,
US$545 million related to the impairment of goodwill associated
with its Global Marine unit, and about US$2 billion due to the
write down of its equity investment portfolio, including its
investment in Exodus Communications.

Moreover, the Company said its net loss for both the fourth
quarter and the full year is expected to reflect the write-off of
its remaining goodwill and other identifiable intangible assets
(about US$8 billion), as well as a multi-billion dollar write-
down of its tangible assets. The Company explained the write-off
of goodwill and other identifiable intangible assets and write-
down of tangible assets will be non-cash charges.

The Company also said it holds about US$1.5 billion in cash in
its bank accounts on a consolidated basis as of Feb. 25, 2002,
including about US$492 million of cash in Asia Global Crossing
bank accounts and about US$327 million in other bank accounts
that are restricted. However, the Company noted those amounts do
not represent Generally Accepted Accounting Principles (GAAP)
cash balances.

GLOBAL CROSSING: Contract Suggests Political Influence
The Pentagon slackened the security requirements for a planned
network in a way that let Global Crossing Ltd. remain in the
bidding for the lucrative contract, says the New York Times.

Last July, the Pentagon chose Global Crossing as the winner of
the three-year contract to develop a network to link 6,000
scientists working on military projects. The contract was valued
at US$137 million initially and up to US$450 million with

However, competing bidders, including AT&T Corp., Qwest
Communications International Inc., Sprint Corp. and WorldCom
Group, complained that Global Crossing, which is incorporated in
Bermuda and is a newcomer to the military industry, did not have
secure American operations or workers who had received requisite
background checks to manage sensitive information, as the
contract specified. This prompted officials to delay the award.

When Pentagon officials reopened the competition, they dropped
the demand that workers who manage the network have clearances to
deal with secret information, in effect removing an obstacle for
Global Crossing.

Since Hutchison Whampoa Ltd. of Hong Kong and a unit of Singapore
Technologies proposed to buy Global Crossing, it appeared that it
would be difficult for the government to award the contract,
which involves the transmission of military data, to a company
that may come under the control of foreign concerns, says the
Times' report.

It now appears that Global Crossing's political contributions and
high-level connections may have had bearing on the lifting of the
security clearance provision, the Times suggests.

GLOBAL CROSSING: Former Exec Drags 13 Companies Into Lawsuit
Roy Olofson, a former Global Crossing finance executive who filed
legal proceedings against the Company for defaming him lists 13
companies he claims engaged in questionable deals with Global.
Olofson claims he was fired for raising concerns about how the
Company booked revenue, reports USA Today.

Although Olofson's attorneys don't have clues whether these
companies did anything wrong, analysts say they will be

"All you have to do is look at the hysteria over everyone's
accounting following Enron to realize" how much of an impact
market uncertainty and fear has on valuations, says Standard &
Poor's analyst Craig Shere.

Olofson, who filed his lawsuit in federal court in Los Angeles,
claimed top executives ignored his concerns, then got him fired.
The lawsuit names Global Crossing Chairman Gary Winnick, Chief
Financial Officer Dan Cohrs, former CEO Thomas Casey and finance
executive Joseph Perrone as defendants. Olofson seeks unspecified
damages, but his law firm, O'Neill Lysaght & Sun, expects

Olofson's lawsuit alleges that Global inflated its revenue by
engaging in "sham" swaps of capacity with other telecom firms.
More than 65 percent of Global's US$1.1 billion in network
capacity sales in the first half of 2001 were to customers that
were also selling capacity to Global, the lawsuit says.

GLOBAL CROSSING: Appointment To Audit Committee Questioned
Investors are skeptical over the appointments of Maria Elena
Lagosimo, one of the heads of J.P. Morgan Private Bank, and Eric
Hippeau, Softbank Capital Partners' managing partner, to the
audit committee of Global Crossing, relates the Wall Street

Their concern centers mainly to the possibility that their dual
duties will generate a conflict of interest.

J.P. Morgan Private Bank has been Global Crossing's private
banker, while Softbank Capital has invested about US$340 million
in Asia Global Crossing, Global's subsidiary.

Global Crossing's Chairman Gary Winnick's tendancy to nominate
major shareholders, business clients and personal friends as
members of the company's board and, particularly, its audit
committee, has spurred great apprehensions among investors.

Mr. Winnick's actions seemed to have defied the policy on good
corporate-governance, as well as the rules formulated by the New
York Stock Exchange and the Securities Exchange Commission.

Global Crossing has defended Mrs. Lagomasino's appointment to its
board, saying that it had been sanctioned by an outside counsel.

GLOBAL CROSSING: Another Bidder Joins The Fray
An investment firm that specializes in buying failed technology
companies is expected to file early this week a competing offer
for Global Crossing in U.S. Bankruptcy Court in the Southern
District of New York, according to an AP report.

Los Angeles-based Gores Technology Group is yet to disclose how
much it will offer for the acquisition of the bankrupt
telecommunications firm, but it must beat a US$750 million
reorganization offer submitted by Hutchison Whampoa of Hong Kong
and Singapore Technologies Telemedia.

According to the terms of Global Crossing's bankruptcy rescue
proposal, the minimum Gores could offer would be US$800 million,
including a US$40 million penalty fee for the two Asian

It's not known what Gores plans to do with Global Crossing, but
rumor has it that it will try to salvage the Company's US$12
billion worldwide fiber optic network.

A group of shareholders has earlier proposed raising US$5.5
billion over the next three years to pay creditors. However,
independent financial experts doubt they would be able to do that
given the public's lack of faith in Global Crossing.

GLOBAL CROSSING: Zwerling, Schachter Announces Class Action Suit
Zwerling, Schachter & Zwerling, LLP ("Zwerling Schachter")
announced Friday that a class action lawsuit was filed in the
United States District Court for the Southern District of New
York, on behalf of all persons and entities who purchased the
common stock of Global Crossing, Ltd. ("Global" or the "Company")
(OTC Bulletin Board: GBLXQ; formerly NYSE: GX) between April 28,
1999 and January 28, 2002, inclusive (the "Class Period").

The Complaint alleges that certain of Global's officers and
directors violated Sections 10(b) and 20(a) of the Securities
Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by
issuing a series of material misrepresentations during the Class
Period, thereby artificially inflating the price of Global common
stock. The Complaint alleges, among other things, that defendants
misled investors: (1) by issuing false and misleading financial
statements in violation of Generally Accepted Accounting
Principles; (2) improperly recorded revenue on the Company's
bandwidth trading contracts; (3) substantially overstated
reported earnings and (4) failed to disclose the nature of
certain swap transactions entered into during the Class Period.
This misconduct caused the market prices of Global's common stock
to be artificially inflated during the Class Period. Furthermore,
while the Company's shares were artificially inflated, the
Individual Defendants and other Global insiders engaged in
insider selling of Global common stock for proceeds in excess of
$144 million. On January 28, 2002, Global filed for Chapter 11
Bankruptcy protection after becoming unable to service its debt.

           Shaye J. Fuchs, Esq.
           Tel. 1-800-721-3900

           Jayne Nykolyn, Senior Paralegal
           Tel. 1-800-263-7337


EMBRAER: Declares Preferred Dividend to Common Shares
Empresa Brasileira de Aeronautica S.A. (NYSE: ERJ) (Bovespa:
EMBR3 EMBR4) hereby informs that at a Special Shareholders'
Meeting held on March 1, 2002, the distribution was approved of
dividend in preferred shares to all holders of its common shares
and preferred shares on the reference date of March 1, 2002.

The shares issued by the Company shall be traded on the Sao Paulo
Stock Exchange, after the dividend, beginning March 4, 2002. This
dividend results from the incorporation into the corporate
capital the sum of R$342,295,494.30 registered in "Reserve for
Investments and Working Capital," a statutory profit reserve.

The Company will issue 88,430,168 new preferred shares, with
0.142106 preferred shares attributed to each existing common
share and to each existing preferred share (dividend of 14.2106%
in preferred shares).

The issue price of the preferred shares derived from the reserve
capitalization has been established based on the book value of
the Company's shares on September 30, 2001.

The preferred shares attributed as a stock dividend will have the
same characteristics as the existing preferred shares of the
Company. The new preferred shares will not be entitled to a
dividend in connection with the year ended December 31, 2001.

The stock dividend will result in an increase in the amount of
preferred shares outstanding and will potentially increase the
liquidity of such preferred shares in the market. The increase in
the number of preferred shares resulting from the payment of the
stock dividend will ensure the Company's ability to issue
preferred shares in larger proportions in future capital
increases, taking into account that the amendments to the
corporations laws implemented by Law No. 10,303/2001 established
that existing corporations could maintain a proportion of up to
2/3 of preferred shares from the total number of issued shares.
Once the stock dividend is implemented, the Company shall be
entitled to maintain, including in future capital increases, the
existing proportion between the number of preferred shares and
the total number of issued shares, as established immediately
after the stock dividend.

After the stock dividend, the subscribed and paid in corporate
capital of EMBRAER shall be of R$1,645,838,596.07 (one billion,
six hundred and forty- five million, eight hundred and thirty-
eight thousand, five hundred and ninety-six reais and seven
cents), comprised of 710,713,042 shares, without par value, of
which 242,544,448 are common shares, including one class of
special shares, and 468,168,594 are preferred shares.

Delivery of the stock dividend

The shares resulting from the stock dividend approved at the
Special Shareholders' Meeting shall be registered in the relevant
entry for each shareholder as of March 6, 2002, and the
shareholders holding ADSs -- American Depositary Shares -- on the
New York Stock Exchange (NYSE) shall have the ADSs registered in
their respective portfolios on March 12, 2002.

CONTACT:  Antonio Luiz Pizarro Manso, Executive Vice President &
CFO of EMBRAER, 011-5512-3927-1216, or e-mail, (ERJ)

EMBRATEL: May Sell Non-strategic Assets To Raise Funds
Embratel Participacoes, a leading Brazilian long-distance phone
company, is looking to raise between BRL100 million and BRL200
million (US$42 million - US$83 million), said Embratel vice
president of finance, Jose Maria Zubiria, in a Reuters report.

Accordingly, the Company is considering the sale of non-strategic
assets, perhaps including its payment clearing unit, in an effort
to raise the funds.

Embratel plans to spend BRL100 million on local telephony in 2002
when it hopes to get regulatory approval from the government to
operate local services.

Earlier this month, Embratel posted a BRL554-million loss for
2001 due to nonpayment of bills, currency depreciation, and
structural changes amid a slowdown in Latin America's biggest

According to Zubiria, the Company plans to maintain its debt
level at BRL3.7 billion in 2002 and reduce investments by 27
percent to BRL1.1 billion with cuts in infrastructure spending.
Internet spending would remain on par with 2001 levels.

Moreover, the Company aims to increase revenue from data
transmission by between 5 and 15 percent in 2002 and combat the
nonpayment of bills, which hit the Company in 2001 by issuing
bills with regional operators.

Embratel has already closed a deal to issue bills jointly with
Brazil's biggest fixed-line phone company Telemar, and is
negotiating to do the same with Spain's Telefonica and Brasil

To see Embratel's financial statements:

CONTACT:  Embratel Participacoes S.A.
          Silvia M.R. Pereira
          Investor Relations
          tel: (55 21) 2519-9662
          fax: (55 21) 2519-6388
          Helena Duncan/Mariana Palmeira
          Press Relations
          tel: (55 21) 2519-3653/3654
          fax: (55 21) 2519-8010

THE JPM COMPANY: Files Ch. 11 Petition; Selling Brazilian Ops
The JPM Company (OTCBB:JPMXE) announced Friday that it has filed
a Chapter 11 in the United States Bankruptcy Court for the
District of Delaware.

Also filing were three subsidiaries: The JPM Company of Delaware,
Inc.; JPM Technologies, Inc.; and Denron Inc.

The Chapter 11 proceedings allow the Company to continue to
operate its facilities while simultaneously conducting an
expedited sales process on a competitive bid basis for its
remaining operations.

JPM believes that using the procedures and protections available
under the Bankruptcy Code will afford it the likeliest
possibilities of finding financially sound purchasers of the
operations as going concerns with substantially all of the
workforce in place.

However, as a requirement of law, employees in Lewisburg and
Beaver Springs, Pennsylvania have been issued Worker Adjustment
and Retraining Notification Act ("WARN") notifications informing
them The JPM Company will no longer be their employer in sixty

In addition to its Lewisburg and Beaver Springs, Pennsylvania
operations, JPM will also be offering for sale its operations in
Singapore, Europe (Germany and the Czech Republic) and Brazil. As
previously announced, JPM has been working with its bank lenders
to sell assets to generate cash to reduce bank debt. In the past
three months, JPM has sold its Mexican and Canadian operations.

The proceeds of the sale of the Mexican and Canadian operations
were used to repay a portion of JPM's bank debt. JPM similarly
expects that the net proceeds of the additional asset sales will
go to creditors and that there will be no amounts allocated to
the JPM shareholders.

The JPM Company is a leading independent manufacturer of cable
assemblies and wire harnesses for original equipment
manufacturers and contract manufacturers in the
telecommunications, networking, computer and business automation
sectors of the global electronics industry.

The decision to sell its businesses and commence a Chapter 11
case was precipitated by a combination of many events, all of
which resulted in substantial demands on JPM's limited cash flow.
JPM suffered a decrease in revenue attributable to lower sales to
substantially all of its customers, particularly those in the
struggling telecommunications industry.

JPM had made significant debt-financed investments in growth
opportunities. The decline in sales could not be balanced with a
sufficient reduction in operating costs, thereby leaving JPM with
debt far in excess of its current capacity to meet its
obligations to its banks.

In order to move forward with the sale of JPM's remaining
operations, JPM's banks have agreed to ongoing use of cash in
accordance with a budget submitted to the Bankruptcy Court.

JPM believes that the support being provided by its banks will be
sufficient to permit payment in full of all expenses incurred in
operating the business after the bankruptcy filing until such
time as its operations are sold.

John Mathias, Chairman of JPM stated: "We deeply regret to be in
the process of selling a business that my father founded in 1949.
From a small start, my family and our dedicated employees
nurtured JPM into a public company with annual revenues in excess
of $170 million for the fiscal year ended 2000. Unfortunately, we
now find the marketplace in which we operate so depressed we must
sell JPM for the benefit of our creditors. We continue to work to
maximize value and are hopeful, based upon the parties we expect
will participate in the bankruptcy sale process, to see an
environment that causes spirited bidding for our U.S. facilities
as going concerns so that our loyal and talented workforce will
still remain employed."

COMPANY COUNSEL:  Neal Colton, Esquire Cozen O'Connor 1900 Market
Street Philadelphia, PA 19103 (215) 665 2060

CONTACT:  The JPM Company, Lewisburg
          Kevin Bratton
          David Surgala

THE JPM COMPANY: Company Profile
      155 North 15th Street
      Lewisburg, PA 17837

PHONE: (570) 524-8225

FAX: (570) 524-8181



     John Mathias, Chairman & CEO
     John Fitzgibbons, President & COO
     James Mathias, Vice Chairman
     Kevin Bratton, CFO
     Wayne Bromfield, Exec. VP, Gen. Counsel, Corp. Sec.

INVESTOR RELATIONS: David J. Surgala, Treasurer
                    Phone: (570) 524-8549

TYPE OF BUSINESS: The JPM Company (OTCBB:JPMXE) is a leading
independent manufacturer of cable assemblies and wire harnesses
for original equipment manufacturers and contract manufacturers
in the telecommunications, networking, computer and business
automation sectors of the global electronics industry.
Headquartered in Lewisburg, Pennsylvania; JPM also has facilities
in Beaver Springs, Pennsylvania; Guadalajara, Mexico; Toronto and
Calgary, Canada; Sao Paulo, Brazil; Leuchtenberg, Germany and
Bela, Czech Republic.

SIC: Electronics - Computer Boards, Cards & Connector Products



PUBLIC SECURITIES: Approximately 7.5 million shares

FINANCIAL ADVISOR: Lehman Brothers Holdings Inc.
                   399 Park Avenue, 15th floor
                   New York, NY 10022
                   Telephone: (212) 526-8381
                   Contacts: Richard S. Fuld, Jr., CEO
                              Shaun K. Butler, Investor Relations

               1900 Market Street
               Philadelphia, PA 19103
               Phone: (215) 665 2060
               Contact: Neal Colton, Esquire

AUDITOR: PricewaterhouseCoopers LLP
         1177 Avenue of the Americas
         New York, NY 10036
         Phone: (212) 596-7000
         Fax: (212) 596-8910


     Scot C. Robinson
     (312) 385-4924

     BC Ziegler and Company
     Reik W. Read
     (414) 270-4477

     Janney Montgomery Scott
     Richard G. Jacobs
     (215) 665-6485

     Needham & Company, Inc.
     Theodor K. Kundtz
     (212) 705-0381

     James A. Ricchiuti
     (212) 705-0380

     Red Chip Review
     Jeff Tryka
     (503) 417-2569

VARIG: To Put Larger Planes On NY-Sao Paulo, Miami-Manaus Routes
Signaling increased passenger demand on two of its North American
routes to Brazil, VARIG Brazilian Airlines announced last Friday
that it would assign larger aircraft on both its daily New York
(JFK)-Sao Paulo and weekly Miami-Manaus flights effective March

The announcement was made by the carrier's Director-North America
Vicente Cervo who noted that positive traffic growth has been
recorded in recent weeks as economic indicators improve in Brazil
and the United States.

"We are encouraged by the steady recovery of business and leisure
travel since of the depths of last fall's dramatic drop-off,"
Cervo said. "Consistent with actions taken globally by virtually
all other major airlines, VARIG had reduced capacity to respond
to the crisis in confidence by air travelers. As conditions
continue to improve, we are gradually re-adjusting our flight
patterns to accommodate greater demand," he added.

CONTACT:  VARIG Brazilian Airlines, Miami
          Jeff Kriendler, 305/866-2115


DISPUTADA: Codelco Abandons Purchase Plans
Exxon Mobil Corp.'s plan to sell Disputada de Las Condes copper
mine in central Chile suffered a set back after Chile's Codelco,
the biggest copper producer, said it dropped out of the bidding.

According to a report by Bloomberg, Codelco made the decision
after Exxon Mobil said that Codelco's latest offer for Disputada
was too low.

Codelco had been competing for the mine with companies including
Brazilian mining company Cia. Vale do Rio Doce and Anglo American
Plc. Previous reports have suggested that Codelco had sought bank
loans to supposedly finance US$1 billion to US$1.2 billion for
the upcoming tender. Codelco wanted to purchase Disputada because
the mine is close to its Andina copper mine in the Andes
mountains. An acquisition would have allowed it to share
processing equipment and other expenses at the two mines while
increasing its production.

Exxon Mobil put the mine up for sale last year as part of a plan
to shed its non-oil businesses. In recent years, Disputada has
endured poor financial results due to low mineral production
levels and depressed copper prices.

ENERSIS: To Cut Investments By 9% This Year Amid Argentine Woes
Enersis SA, South America's second-biggest energy company, plans
to cut investment in the region by 9 percent to US$650 million
this year, from the US$712 million it has spent last year, says

The reduction in investment follows Argentina's devaluation,
which has trimmed the Company's earnings.

A devaluation and recession in Argentina may reduce Enersis'
earnings this year by as much as US$100 million, before interest,
taxes, depreciation and amortization, said Enersis Deputy Chief
Executive Officer Juan Ignacio Dominguez.

Energy demand in Argentina has slumped 6 percent this year,
indicating that the economy contracted even more steeply,
Dominguez said. That drop will curb investment at the Company,
analysts said.

"They have less cash to work with because of Argentina," said
Maria Teresa Ibanez, an analyst at the brokerage arm of Banco
Santiago SA.

Enersis, a division of Endesa SA of Spain, will make less money
after the Argentine government converted energy prices into pesos
from dollars following its devaluation of the currency, which has
weakened by more than half this year. The changes will reduce
revenue from Edesur SA, Enersis' biggest foreign unit, and
Enersis' generators in Argentina.

           Santo Domingo 789
           Santiago, Chile
           Phone: (562) 688-6840
           Alfredo Llorente, Chairman
           Enrique Garcia, CEO
           Rafael Miranda, Vice Chairman
           Mauricio Balbontin, CFO
           Domingo Valdes, Gen. Counsel


AVIANCA-ACES: Merger, Integration Completed
Avianca, Colombia's largest airline, and former rival Aces SA
completed an integration that will allow the companies to cut
costs and improve their ability to compete, reports Bloomberg.

Mckinsey & Company designed the merged operation's new
organization. Korn Ferry was hired to work on the merged
operation's employment line-up. At the end of 2001, Avianca
employed 3,500 workers, while Aces employed 2,043.

The merger, approved by the government last year following months
of deliberation, is considered vital for the companies' continued

Avianca lost 278 billion pesos last year, down from 414 billion
pesos a year earlier. Aces estimates its 2001 losses at COP13
billion when it had hoped to post profits of COP2 billion this

CONTACTS:  Mckinsey & Company
           Maipœ 1210 - piso 4
           1006 Buenos Aires, Argentina
           Voice: 54 (11) 4 318 3900
           Fax: 54 (11) 4 318 3973

           Korn Ferry International
           Contact: Spencer Davis, VP Investor Relations
           1800 Century Park East, Suite 900
           Los Angeles, CA 90067
           Tel. (310) 556-8553

TELECOM: Loses Almost US$19 Mln Due To FARC Attacks
Colombia's Telecom, which provides long distance, local and
Internet services, disclosed a loss of nearly US$19 million in
the past week due to attacks by Revolutionary Armed Forces of
Colombia (FARC) guerrillas against seven transmission towers,
reports EFE.

Rebels have dynamited telecoms networks in the provinces of
Caqueta, Boyaca, Arauca, Norte de Santander, Cundinamarca and
Tolima since the government called off peace negotiations last

Guerrillas have disrupted telecommunications in more than 150
towns in those provinces. In addition to the Telecom
installation, a cellular telephone antenna was damaged.

In late February, Colombian finance ministry's public credit
director Juan Mario Laserna announced that Telecom is expected to
issue bonds worth US$300 million in the second half of this year.
The Company will be issuing the bonds to cover its share of the
costs incurred by joint ventures with foreign equipment vendors.

The issue would be dependent on the vendors' acceptance of terms
proposed by Telecom in January, based on the government's
December offer to allow Telecom to take out US$600 million in
debt if it can renegotiate the contracts.

Colombia's weak economy caused the Company's revenues to fall
short of expectations, saddling it with US$1.56 billion in
liabilities under the terms of the joint venture contracts.

VALORES BAVARIA: Blames Avianca For Its 4Q Loss
Valores Bavaria SA, Colombia's largest diversified holding,
posted a loss of COP738.6 billion (US$319.7 million) in the
fourth-quarter 2001, compared to a profit of COP46.3 billion in
the same period in the previous year, reports Bloomberg.
Furthermore, the Company revealed a 68-percent drop in its
revenue to COP13.7 billion from COP42.5 billion a year earlier.

In an official statement, the Bogota-based company said about 65
percent of the losses can be attributed to "those actions aiming
at restructuring our airline Avianca SA," including a capital
increase and debt write-off that cost COP881 billion last year.

"It's easy to blame Avianca on the losses, but the reality is
that some of Valores' businesses show they must be overhauled as
soon as possible," said Corredores Asociados SA equity analyst
Willington Ospina.

Javier Aguirre, Valores's president, recently revealed plans to
sell assets and reduce the holding's stake in those businesses
that "don't increase shareholders' value." Valores has an
investment portfolio that ranges from a 34 percent stake in the
Colombian unit of BellSouth Corp. to Sofasa SA, the local
assembler for Renault and Toyota vehicles.

Valores, which controls 91 percent of Avianca, has seen its stock
lose 88 percent of its value in the past 12 months.


BANCA QUADRUM: IPAB Commences Liquidation Process
Mexico's Bank Savings Protection Institute (IPAB) will now begin
the process of liquidating Banca Quadrum after its shareholders
failed to find a new partner, nor contribute the funds needed to
cover the bank's lack of capital. The process marks the first
time that IPAB has directly intervened in and liquidated an
operating bank.

"The most important thing is that throughout the process we have
been well-coordinated with all the financial authorities and we
are carrying out the fastest bank intervention that Mexico has
ever seen, even though the process has been far from simple,"
said Pablo Escalante, vice president of the CNBV.

Quadrum would be transferred to IPAB in a matter of days, as it
only remains for the Treasury Secretariat to revoke the bank's
authorization to act as a bank, Escalante said.

To see company's financial statements:

CONTACT:  Ernesto Rodriguez, Investor Relations
          Tel. +011-52-55-5284-5693

GMM: Fitch Cuts Ratings To 'B'; Watch Negative
Fitch Ratings has downgraded Grupo Minero Mexico's (GMM) secured
export notes (SENs) to 'B+' from 'BB' and its unsecured bonds to
'B' from 'BB-'. The rating action affects approximately $550
million of SENs and $450 million of unsecured bonds. All ratings
are on Rating Watch Negative.

The rating action reflects the company's continued tight
liquidity position and protracted negotiations with its
creditors. While the company continues to work with its lenders
to renew credit facilities and extend a portion of upcoming debt
maturities, ongoing negotiations between the company and the
various creditors has increased the uncertainty and risk of
satisfactorily resolving liquidity and debt amortization issues
in a timely fashion. Depending upon the final outcome of these
negotiations and the ultimate debt maturity/profile of the
company, the credit ratings could be adjusted.

At this time, GMM continues to remain current on its interest and
principal payments under outstanding capital markets obligations
consisting primarily of about $550 million in secured export
notes (SENs), and about $450 million of unsecured bonds due in
2008 and 2028. GMM is negotiating extensions and/or new
facilities for much of its bank debt due in 2002-2004; a portion
of some of the bank facilities have expired or will become due in
the near future. In 2002 and 2003, GMM has approximately $260
million of SENs that mature and about $200 million of bank
obligations that come due. In addition, GMM faces annual interest
payments of about $38 million on its unsecured bonds.

Fitch's ratings incorporate the expectation that GMM will not
refinance its obligations until the debt structure of its sister
company, Asarco, is altered. This will likely occur during March
2002. The most important obligation that needs to be refinanced
at Asarco is a $450 million credit facility that comes due in
November 2002. A number of lenders have credit exposure to both
Asarco and GMM.

Fitch continues to believe that the company will be able to
successfully complete these negotiations and transactions as a
result of the expected monetization of Grupo Mexico's, (the
indirect parent company of both Asarco and GMM) 74% ownership
stake in Grupo Ferroviario Mexicano, S.A. de C.V. (GFM). Grupo
Mexico may either sell part or all of GFM or raise funds for GMM
and Asarco by obtaining a loan that is collateralized by the
shares of GFM. Depending upon whether one, or both of these
options are pursued, Grupo Mexico should be able to generate
between $400 million-$800 million that could be used to
recapitalize GMM and Asarco.

If the negotiations at Asarco continue well into the second
quarter of 2002, or if Grupo Mexico does not utilize its stake in
GFM to raise cash during this time period, the ratings on the
SENs and unsecured bonds will likely be further revised downward.

GMM's long-term credit ratings incorporate the cyclical nature of
the copper industry, which is currently near the trough of the
cycle. During the second half of 2001, copper prices averaged
near $0.65 per pound, but recently rebounded to approximately
$0.70 per pound. Due to the sluggish global economic outlook for
this year, copper prices are expected to remain in the low to
middle $0.70 per pound range.

GMM's copper mining assets, competitive cost structure and long-
term business fundamentals should allow the company to produce
reasonably healthy cash flows at more normal copper prices versus
today's depressed prices.

CONTACT:  Fitch Ratings
          Anita Saha CFA, 312/368-3179
          Joe Bormann CFA, 312/368-3349
          Daniel Kastholm, 312/368-2070
          James Jockle, 212/908-0547 (Media Relations)

GRUPO TELEVISA: Issuing New Bonds To Finance Debt Swap
Grupo Televisa S.A., the largest media company in the Spanish-
speaking world and a major player in the international
entertainment business, was expected to launch a US$300-million
bond in the United States early this week. The funds are expected
to be used to finance a debt swap, says Mexico City daily el

According to sources close to the operation, the bond will have a
term of 10-30 years and the proceeds will be used to pay U.S.
company Univision for a 10 percent additional acquisition of

Televisa plans to use the bond to refinance a previous bond,
which expires in December 2002 for US$276 million. Televisa owns
15 percent of Univision. It originally used the US$276 million to
pay part of the US$376 million price tag for an increase in its
stake in the U.S. company.

JP Morgan, Citibank and Deutsche Bank have been hired to act as
agents in the operation.

CONTACTS:  Emilio Azcarraga Jean Chairman, President & CEO
           Alejandro Burillo Azcarraga, Vice Chairman

           GRUPO TELEVISA, S.A.
           Av. Vasco de Quiroga No. 2000
           Colonia Santa Fe
           01210 Mexico, D.F., Mexico
           PHONE: (525) 261-2000

HYLSAMEX: To Release Final Debt Restructuring Plan By March-End
Steel and industrial conglomerate Grupo Alfa SA revealed that its
steel unit, Hylsamex SA, and its creditor banks expect to
announce a final debt restructuring plan by the end of this
month, reports Business News Americas.

After a series of meetings, Hylsamex's creditor banks have
finally agreed to the Company's proposal to pay off its debts in
two broad loans: a US$362-million sum to be paid back over seven
years with a two-year grace period, and a US$265-million loan to
be paid back over eight years with a four-year grace period. Both
would be subject to an interest rate of LIBOR plus 400 basis

Alfa will back US$78 million of Hylsamex's debt through direct
credit and corporate guarantees.

The banks also discussed ways to make payments on a US$300
million eurobond issue and MXN675 million (US$73.8 million) of
medium-term debts. The creditor banks had agreed in principle to
the plan in December last year.

Hylsamex's creditor banks include Banamex-Citibank, BBVA
Bancomer, Bayerische Hypo-Vereins Bank and JP Morgan Chase.

The Monterrey-based company and its subsidiaries have US$1.4
billion in outstanding debt. Its ability to pay that debt has
been severely reduced by low steel prices and falling U.S. demand
for imports.

The price Hylsamex gets for exporting hot rolled flat steel to
the U.S. has plummeted 30 percent since March 2000 to US$235 per
short ton. Flat steel is used by the auto industry and appliance

The Company has been looking without success for a partner to
help alleviate its debt problems, leading it to seek a debt
restructuring agreement with creditors.

                 Am Tucherpark 14
                 D-80538 Mnchen
                 Aktion„rs-Hotline*: 00800 - 378 000 00
                 (*kostenfrei und nur aus D, A, CH)
                 Tel: +49 (89) 3 78 - 2 52 76
                 Fax: +49 (89) 3 78 - 2 40 83
                 Christian Becker-Hussong
                 Phone: +49 (89) 3 78 - 2 82 35

                 Susan Eckenberg
                 Phone: +49 (89) 3 78 - 2 91 85

                 JP MORGAN CHASE
                 60 Wall Street
                 New York, NY 10260
                 Phone: (212) 483-2323/648-5545

                 BBVA BANCOMER
                 Av. Universidad 1200,
                 Col. Xoco, M‚xico, D.F.
                 Phone: (52) (55) 5621-7912
                 David S nchez-Tembleque
                 Tel: (52) (55) 5621-4938

                 Jos‚ de Jes£s G¢mez Dorantes
                 Tel: (52) (55) 5621-4718

                 Araceli Espinosa Elguea
                 Tel: (52) (55) 5621-2718

ISPAT MEXICANA: S&P Affirms `CC' on Export Trust No. 96-1 Certs
Standard & Poor's affirmed its double-'C' rating on the
structured export certificates of Imexsa Export Trust No. 96-1
(Imexsa), a subsidiary of Ispat International N.V. The rating on
the certificates remains on CreditWatch.

The rating affirmation reflects the fact that Imexsa has extended
its exchange offer for the restructuring negotiations with the
holders of the export certificates due in 2003 until March 11,
2002. The restructuring entails a moratorium on all capital
repayments until 2005. The exchange offer was originally
scheduled to expire on Feb. 22, 2002, but was extended until Feb.
28, 2002. Standard & Poor's views the restructuring as a
transaction default due to the coercive nature of the exchange --
investors have little choice but to accept it -- and because
investors would not receive full and timely payment of the
originally scheduled debt service. As a result, the rating on the
structured export certificates will be lowered to 'D' upon
completion of the exchange. Standard & Poor's will closely
monitor the progress of the restructuring negotiations.

The payment to investors made recently was covered with the
proceeds from the reserve LOC. The structured export certificate
transaction is based on a long-term supply contract between
Imexsa and Mitsubishi Corp., in which the latter is required to
purchase enough shipments of steel slabs from Imexsa at the then-
prevailing market price to cover 1.3 times the maximum debt
service for each quarterly debt service period. Currently, Imexsa
is not shipping any steel slabs to Mitsubishi, which constitutes
a breach of a transaction covenant. Therefore, investors are now
fully dependent on Imexsa's ability and willingness to make
payments on the structured export certificates outside of
original transaction structure. Because of this dependence on the
underlying issuer, Imexsa, the transaction rating has been set
consistent with the company's double-'C' local currency rating.
The next payment by Imexsa is due on May 31, 2002.

In the last year, Imexsa has faced difficult steel slab market
conditions, high-energy prices that have reduced its profit
margins, and a strike that lasted from Dec. 20, 2001 until Jan.
17, 2002, causing the stoppage of all production of the steel
slabs that constitute the securitized assets.

The structured export certificates entered into early
amortization after being downgraded to double-'B'-minus on Nov.
23, 2000.

CONTACT:  Juan J Flores, Mexico City (52) 55-5279-2020
          Olivier Beroud, London (44) 20-7826-3508
          Federico Mora, Mexico City (52) 55-5279-2036


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter Latin American is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ,
and Beard Group, Inc., Washington, DC. John D. Resnick, Edem
Psamathe P. Alfeche and Fe Ong Va¤o, Editors.

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
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Information contained herein is obtained from sources believed to
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