TCRLA_Public/020311.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, March 11, 2002, Vol. 3, Issue 49



BANCO GALICIA: Central Bank Approves New Capitalization Scheme
BANCO GALICIA: BBVA Denies Reports Of Talks About Possible Buy
BANCO HIPOTECARIO: Blames Argentine Crisis On MBS Trans Default
NII HOLDINGS: May Reorganize Latin American Operations This Year
PECOM ENERGIA: Declares Accounting Measures For The 4Q 2001
PROVIDIAN FINANCIAL: Agrees To Sell Argentine Operations
TELECOM ARGENTINA: Potential Default Weighs On Shares


GLOBAL CROSSING: Schiffrin & Barroway, Files Class Action Suit


EDITORA ABRIL: Moody's Downgrades Ratings; Outlook Negative
ENRON: Commences US$570M Thermoelectric Expansion Project
GLOBO CABO: Shares Up On Expectation Of Reduced Losses
VARIG: Subsidiary To Reduce Fleet, Domestic Flights


VALORES BAVARIA: Shares May Fall Further On Losses


BANCA QUADRUM: IPAB Head Confirms Payment To Accountholders
CANON INC.: To Liquidate Mexican Operations
CINTRA: Senator Says Sell This Year Before Value Drops Further
GRUPO MEXICO: 4,000 Workers Striking Over Wage Hike

T R I N I D A D   &   T O B A G O

BWIA: Antigua Union Comments On Planned Job Cuts

     - - - - - - - - - -


BANCO GALICIA: Central Bank Approves New Capitalization Scheme
The Argentine Central Bank was supposed to announce Friday to
Banco de Galicia y de Buenos Aires, the country's largest private
bank, that it was allowing it to continue operating under a new
recapitalization plan that Galicia itself presented on Tuesday.

The plan, according to an AFX report, involves the injection of a
total of US$1.05 billion into the bank to keep it afloat.

Some US$100 million will be provided by the central bank itself,
while Seguro de Depositos SA (SEDESA), a private corporation
controlled by the state that administers the Deposit Guarantee
Fund, would provide some US$200 million and perhaps even more.

The bulk of the funds -- about US$500 million -- would be
provided by the banks operating in Argentina, directly and
through the bank liquidity fund (FLB). These funds would come in
addition to US$140 million from an equity-for-debt deal with
Banco Galicia's creditors. More banks could join the proposed
plan Friday, bringing the amount of debt capitalized to US$250
million, says the report.

The central bank (BCRA) considers the recapitalization scheme as
only a temporary solution. In fact, some of the BCRA's management
considers these funds to be insufficient in solving Banco
Galicia's problems.

In addition to the capital injection, the plan also seeks an
equity partner for the bank and a significant management change.

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

BANCO GALICIA: BBVA Denies Reports Of Talks About Possible Buy
Recent reports suggesting that Banco Bilbao Vizcaya Argentaria SA
is in talks with Banco Galicia over a possible acquisition of a
stake in the Argentine bank are unfounded according to BBVA.

"BBVA has not had any talks with Banco Galicia" over a possible
stake buy, a BBVA spokesperson said.

Banco Galicia, which owes about US$20 million with BBVA, has
offered its major creditors equity in the bank in exchange for
contributing to a capital increase and reducing the size of their

           Gran Via, 1
           48001 Bilbao, Vizcaya, Spain
           Phone: +34-94-487-55-55
           Fax: +34-94-487-61-61
           Home Page:
           Francisco Gonzalez Rodriguez, Chairman
           Jose Ignacio Goirigolzarri, CEO
           Angel Cano, CFO

BANCO HIPOTECARIO: Blames Argentine Crisis On MBS Trans Default
Regardless of what factors ultimately led to the crisis that
Argentina currently faces, the fact remains that Banco
Hipotecario S.A.'s (BH) mortgage-backed securities, once the
leading paradigm of secondary mortgage market development in
Latin America, are now officially in default. Although funds
continue to flow to investors, they are not in an amount and
denomination needed to satisfy the original terms of the trusts'
obligations. Consequently, Standard & Poor's downgraded the
senior tranches of the BHN II and III Mortgage Trusts to 'D' (see
related press releases published Feb. 26, 2002, and Feb. 28,
2002, for details).

"It is an unfortunate outcome for these deals, because their
underlying framework and structures were so carefully built,"
said Jorge Solari, director of Standard & Poor's Structured
Finance group in Buenos Aires. "Nevertheless, the outcome
underscores the potential and inherent impact of sovereign risk
on emerging market structured financings that Standard & Poor's
has always emphasized." Standard & Poor's ratings on BH's MBS
never exceeded triple-'B'-minus, reflecting the absence of the
very high overcollateralization levels needed to compensate for
potentially extreme deterioration of cash flow, as well as some
degree of linkage to sovereign default risk.

For more than two years, BH and its advisors developed standards
for loan documentation, origination, and servicing, based on
similar U.S. practices. During this time they also built systems
that could accommodate the large network of originators and
servicers participating in the BH mortgage program and the
reporting tools required for proper analysis and tracking of
mortgage loan performance. Furthermore, BH's first MBS issuance,
in 1996, was backed by a loan pool with good credit
characteristics. The securities also had strong credit
enhancement and repayment and legal structures. Subsequent
issues, which were sold until 2001, had similar characteristics.

    Main Characteristics of BH's MBS Issuances

    BH's MBS issuances were characterized by:

    * Maximum loan-to-value (LTV) level of 80%
    * Low weighted average LTV of less than 60%
    * Geographically diverse pools
    * Fully amortizing loans
    * Interest rate that was fixed or linked to LIBOR
    * First lien security
    * Residential properties only
    * Thorough property reevaluations
    * Good performance history -- no loan greater than 30 days
      delinquent in past year

The securities performed well in their initial years, even during
2001. However, strong credit, financial, and legal structures of
the transactions were not enough to protect the MBS from the
catastrophic effects of the Argentine financial, economic, and
political crises, which entered into their more fierce stages at
the end of 2001. Presidential decree 214, enacted on Feb. 10,
2002, forced the "pesification" of all Argentine issuers' dollar-
denominated debt that had been issued with documents governed by
Argentine law. In January, mortgagors' loans, including those of
the BH issuances, were pesified at an exchange rate of 1:1,
meaning that mortgagors' obligations had been reduced. This
reduction was unfavorable to the trusts and investors because of
the devaluation of the peso of nearly two pesos to the dollar. In
February, the MBS obligation itself was pesified, meaning that
the trusts' obligations to investors were now reduced.

When Standard & Poor's initially rated the MBS triple-'B'-minus',
it took the position that the loan pools could suffer increased
losses due to high unemployment, potential devaluation of the
peso, restructuring of loan terms, and decreased home values. A
similar situation occured in Mexico during the Tequila Crisis.
What was not anticipated was the total pesification of mortgage
debt coupled with pesification of the trusts' debts. "The
changing of the loan and debt denominations means a breach and
absolute disregard of the legal contracts governing the mortgage
loans and debt terms, both of which reflect a stress much higher
than indicated by the initial triple-'B'-minus ratings on the
MBS," said Diane Audino, a director in Standard & Poor's
Structured Finance group in New York.

Standard & Poor's currently rates all four of BH's MBS issuances
on its national scale and, BHN II and III senior tranches on its
global scale. We will continue to monitor the performance and any
recovery of these MBS transactions and will continue to
communicate to the market all new and relevant information and
analyses. Standard & Poor's also expects to issue a review on
rating MBS for emerging markets based on the lessons learned from
the Argentine crisis.

           Jorge Solari, Buenos Aires, +54-114-891-2114
           Diane Audino, New York, +1-212-438-2388
           Juan Pablo De Mollein, Buenos Aires, +54-114-891-2113

NII HOLDINGS: May Reorganize Latin American Operations This Year
NII Holdings, the international arm of US-based Nextel
Communications, has quietly acquired radio spectrum in the 800MHz
range and operating licenses to offer digital trunking services
in Latin America, specifically in Brazil, Mexico, Argentina,
Peru, and Chile, over the last several years.

However, NII's operations in the region have been beset by
sluggish economic growth in major markets, competition from
mobile operators, and the reluctance of capital markets to
provide additional funding for necessary build out. Nextel was
forced to call off its US$720-million IPO of NII in March last
year due to negative investor sentiment toward the telecoms
sector. The proceeds would have been used to fund expansion,
especially in Latin America.

As a result, NII will likely regroup in Latin America this year
as it confronts debt restructuring and funding issues. NII said
in February that it was in discussions to restructure its debt,
which could include the sale of assets or bankruptcy under
Chapter 11. The company also said it would take a US$1 billion -
US$2 billion charge for 2001 to cover asset impairments and
restructuring costs.

"I think Nextel will consolidate into a few major markets in the
region," Pyramid Research senior analyst Jonathan Tirone said.
"Looking at Mexico and Brazil might make sense right now [for the
Company] given their potential for growth."

However, a possible sale of its Argentine assets faces a
challenge due to the country's financial crisis.

"I don't see anyone interested in acquiring the Company. In terms
of bandwidth they don't have that much and the current financial
situation will deter anyone from entering the market," Jose
Otero, analyst for IT and telecoms consultancy Proteus, said.

In Chile and Peru, NII faced legal opposition from incumbent
mobile operators in 2001 who argued the company was illegally
providing a form of mobile telephony without having acquired the
necessary licenses. While NII won its case in both countries, its
network sat idle while the company wasted months in the courts.

           Mario Carotti, 305/441-0818
           Nextel Communications, Inc.
           Paul Blalock, 703/433-4300

           Houlihan Lokey Howard & Zukin Capital
           Franklin W. "Fritz" Hobbs, CEO
           1-800-788-5300 toll free

PECOM ENERGIA: Declares Accounting Measures For The 4Q 2001
Perez Companc S.A., announced that Pecom EnergĦa S.A. disclosed
the following effects on the Company's income for the fourth
quarter of 2001:

Minimum presumed income tax credit charged to income.

The negative impact of exchange gains/losses on Pecom EnergĦa's
foreign currency borrowing position as a result of the peso
devaluation as well as the uncertainty posed by the Argentine
current economic scenario, have negatively affected the expected
recovery of the Minimum Presumed Income Tax credit. Therefore,
the Company has decided to charge to income for the 2001 4th
Quarter a Minimum Presumed Income Tax credit in the amount of Ps.
47 million.

The Minimum Presumed Income tax is supplementary to Income Tax
and is levied on the potential income of certain productive
assets at a rate of 1%.

Charging to Income the acquisition value of Compa¤Ħa de
Inversiones de EnergĦa S.A. (CIESA) in excess of the relevant
book value.

On account of the impact of the significant peso devaluation on
CIESA's foreign currency borrowing position and by virtue of the
uncertainty in results of operations expectations as a
consequence of the new economic measures, Pecom EnergĦa S.A. has
deemed it proper to charge to income the acquisition value of
CIESA in excess of the relevant book value, accounting for a
Ps.92 million loss.

Such value in excess was determined in 1996 upon successive
acquisitions by Pecom EnergĦa S.A. that resulted in the ownership
of an additional 25% interest in CIESA's capital stock.
CIESA is owner of 70% of the shares of Transportadora de Gas del
Sur S.A. (TGS), the licensee for the rendering of gas
transportation service in the south of Argentina.

Pecom EnergĦa S.A., controlled by Perez Companc S.A., is the
largest independently owned energy company in the Latin American
region. Its business activities include oil and gas production
and transportation, refining and petrochemicals, power
generation, transmission and distribution as well as forestry
activities. Headquartered in Buenos Aires, the Company has
operations throughout Argentina, Brazil, Venezuela, Bolivia, Peru
and Ecuador.

CONTACTS:  Pecom Energia S.A. de Perez Companc S.A.
           Maipo 1 - Piso 22 - C1084ABA
           Buenos Aires, Argentina
           Phone: (54-11) 4344-6000
           Fax: (54-11) 4344-6315

PROVIDIAN FINANCIAL: Agrees To Sell Argentine Operations
Providian Financial Corporation, the troubled credit card
provider, announced Tuesday that it has entered into an agreement
to sell its Argentine operations, including Providian Financial
S.A. and Providian Bank S.A., to a local investor group in Buenos
Aires. The Company did not disclose the terms of the transaction,
but indicated that, after accounting for charges taken during the
fourth quarter of 2001, it expected to record a modest gain on
the sale, subject to currency fluctuations prior to the
transaction's close. The sale is contingent upon regulatory
approval by the Argentina bank regulatory authorities and other
customary closing conditions, and is expected to close in the
second quarter of 2002.

As part of its five-point strategic action plan, Providian
announced in November of 2001 its intention to sell its
international operations. The Company announced in February that
it had reached an agreement to sell its United Kingdom operations
as well.

           Alan Elias, +1-415-278-4189
           Jack Carsky, +1-415-278-4977

TELECOM ARGENTINA: Potential Default Weighs On Shares
Shares of, Argentina's second largest phone company by revenue,
Telecom Argentina, dropped 3.59 percent to ARS2.15 on investor
concern that the Company will not be able to meet mostly dollar-
denominated debt payments. The concerns are magnified because of
falling revenue in the wake of the country's three-year

As of September 2001, Telecom Argentina had US$298 million in
cash and short-term investments (at a Argentine peso 1:US$1
exchange rate) and US$3.4 billion in total debt. The Company
faces significant debt maturities of about US$1.2 billion in
2002, including a EUR250-million bond in July 2002.

Argentina's January 6 devaluation is hurting the Company's
earnings and banking restrictions have slowed sales of phone
lines, wireless phones and high-speed Internet services, analysts

Telecom Argentina recently announced net earnings for the full
year 2001 dropped 72 percent to ARS47 million (US$23.5 million)
from the amount it posted in 2000 due to a decrease in usage
prompted by the economic crisis.

           Elvira Lazzati
           Pedro Insussarry
           Telecom Argentina
           Tel. (54-11) 4968-3626/3627


NAME: Delphi International Ltd.
      Chevron House
      11 Church Street
      Hamilton, Bermuda

PHONE: (441) 295-3688

FAX: (441) 295-3689


EXECUTIVE MANAGEMENT TEAM: Robert Rosenkranz, Chairman
                           Colin O'Connor, President & CEO
                           David Ezekiel, VP & Director

INVESTOR RELATIONS: Robert Rosenkranz, Chairman
                    Phone: (441) 295-3688

TYPE OF BUSINESS: Through its wholly owned subsidiary, Oracle
Reinsurance, Delphi International (NasdaqNM: DLTDF) company
provides excess of loss and quota share reinsurance. Delphi
International primarily provides reinsurance for group employee
benefit insurance products (including long-term group disability
and excess workers' compensation insurance) offered by Delphi
Financial's Reliance Standard Life Insurance and Safety National
Casualty subsidiaries. Chairman Robert Rosenkranz owns more than
25% of the company.

SIC: Life Insurance


TOTAL ASSETS: $ 156,521,561 (Q ended Sept. 30, 2001)

TOTAL LIABILITIES: $ 142,344,525 (Q ended Sept. 30, 2001)

PUBLIC SECURITIES: 4,079,014 Common Shares outstanding  (As of
        November 9, 2001)


IPO INFORMATION: Filing Date: Sep 2, 1997
                 Proposed offer price: $10.00
                 Shares offered: 2.05 (million)
                 Post-offering shares: 2.2 (million)


       Credit Suisse Asset Management
       Uetlibergstrasse 231
       P.O Box 800
       CH-8045 Zrich
       Tel. +41 (1) 335 11 11
       Fax. +41 (1) 333 22 25

       Taunus Corporation
       31 W. 52nd St.
       New York, NY 10019
       Phone: 212-469-2456

TOP MUTUAL FUND HOLDERS: Salomon Brothers Opportunity Fund Inc
                         Phone: (888) 777-0102

Last TCRLA Headline DATE: Tuesday, March 5, 2002, Vol. 3, Issue

GLOBAL CROSSING: Schiffrin & Barroway, Files Class Action Suit
The law firm of Schiffrin & Barroway, LLP filed a class action
suit against Global Crossing, Ltd. ("Global" or the "Company")
for allegedly misleading investors about its business and
financial condition.

The complaint was filed in the U.S. District Court for the
Western District of New York and seeks damages for violations of
federal securities laws on behalf of all investors who bought
Global Crossing, LTD. securities between February 14, 1999 and
October 4, 2001(the "Class Period").

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

           Shareholder Relations Manager
           888-299-7706 (toll free) or 610-822-2221

           Press Contacts:
           Dan Coulter
           +1 973-410-5810

           Becky Yeamans
           +1 973-410-5857

           Analysts/Investors Contact:
           Ken Simril
           +1 310-385-5200


EDITORA ABRIL: Moody's Downgrades Ratings; Outlook Negative
Editora Abril S.A. (Abril) saw its Brazilian National Scale
rating downgraded by Moody's Investors Service to from Additionally, the Company also had its Global Local
Currency Scale Rating slashed by the ratings agency to B2 from
Ba3. The rating outlook is negative.

The downgrades, according to Moody's, primarily reflect the lack
of previously expected asset sales, which were anticipated to
have materially strengthened Abril's financial flexibility had
they occurred as expected.

Additionally, the lower ratings incorporate the combined effects
of assumed reductions in values for many of the company's assets,
particularly so for the Internet/UOL holdings; the devaluation of
the real; and operational performance that has generally been
below Moody's original expectations.

Moody's has heightened concerns regarding Abril's financial
flexibility, as, importantly, the previously proposed asset sales
were also expected to materially bolster the company's liquidity

As of September 2001, approximately 86% of the company's debt was
short-term in maturity. Although Moody's expects this mix to
shift to a greater percentage of long-term debt when year end
results are reported, the proportion of short-term debt is still
expected to be material. Additionally, the company is expecting
to improve cash flow in 2002, however it is reliant on additional
substantial expense reductions in 2002 that have already been
initiated. If the expense reductions do not have the planned
impact on cash flow, Abril may not have the necessary liquidity
to fund potential cash flow losses without the benefit of asset
sales, which management continues to pursue. While the company
will likely be reliant on bank relationships to roll-over looming
debt maturities, Moody's believes that the company's banks will
continue to support it.

The negative outlook further incorporates the uncertain ability
of the company to grow revenue and cash flow over the
intermediate-term, and Abril's need to reduce its debt burden and
improve its liquidity position. Continued lack of progress on
improving the company's capital structure could result in further
downward pressure on the ratings, particularly if the company's
recent operational improvements abate. If demonstrated
improvements in cash flow persist, and asset sales lead to
balance sheet repair and bolster the company's liquidity
position, positive ratings momentum can be achieved. In addition,
anticipated regulatory changes allowing foreign ownership in
Brazilian media companies could lead to improved valuations and
interest in Abril over the long-term.

At the same time, Moody's also withdrew the rating on Abril's
BRL150-million senior unsecured floating rate Debentures due
2003. This rating was initially assigned in July 2000, however,
the Debentures were never sold. The BRL300-million senior
unsecured notes that the company sold in August 2001 will not be
rated by Moody's.

Editora Abril S.A., based in Sao Paulo, Brazil, is one of the
largest communications groups in Latin America. It publishes and
prints a wide selection of magazines, including Veja. The company
also has interests in multimedia, entertainment, the Internet,
education and direct marketing.

           Russell Solomon
           Senior Vice President
           Corporate Finance Group
           JOURNALISTS: 212-553-0376
           SUBSCRIBERS: 212-553-1653

           Dominic S. Ward
           Senior Associate
           Corporate Finance Group
           JOURNALISTS: 212-553-0376
           SUBSCRIBERS: 212-553-1653

ENRON: Commences US$570M Thermoelectric Expansion Project
Bankrupt US-based energy group Enron began Thursday a US$570-
million expansion of its Cuiaba integrated electricity project,
reports Business News Americas. Accordingly, the project includes
a thermoelectric plant in Brazil's Mato Grosso state and a 630km
gasline from Bolivia.

Enron owns 71.8 percent of the thermoelectric plant through EPE
(Empresa Productora de Energia), while UK-based Shell owns 28.1
percent. Furthermore, the embattled US firm has 56.2 percent of
the Brazilian portion of the gasline, while Shell has 43.7
percent. Both firms have 50:50 ownership of the Bolivian portion.

Enron's involvement in the Cuiaba project is being investigated
by the US congress. The investigation centers on the purchase and
sale of shares in the project between Enron and investment
company LJM.

In September 1998, Enron sold 13 percent of EPE to LJM, owned by
then Enron financial director Andrew Fastow, for US$11.3 million.
According to a US congressional report, Enron bought LJM's stake
in EPE on August 2001 for US$14.4 million.

CONTACTS:  Mark Palmer of Enron Corp., +1-713-853-4738
           Enron Corp.
           Investor Relations Dept.
           P.O. Box 1188, Suite 4926B
           Houston, TX 77251-1188
           (713) 853-3956

           Enron Corp.
           Public Relations Dept.
           P.O. Box 1188, Suite 4712
           Houston, TX 77251-1188
           (713) 853-5670

           (Enron's office in South America)
           Highway of the Immigrants
           3770, Industrial District
           Cuiaba, TM 78098-840
           Phone: 5565 667-3611
           Fax: 5565 667-3611 ext. 264

GLOBO CABO: Shares Up On Expectation Of Reduced Losses
Shares of the Brazilian cable television company Globo Cabo SA
recently rose 3 percent to BRL0.69, reports Bloomberg. In the
throws of restructuring its debt-saddled business amid a sluggish
economy, the Company is expected to release fourth-quarter
results shortly.

Carolina Gava, analyst with BES Securities, is forecasting Globo
Cabo will post a BRL28-million net loss, compared with implied a
consolidated net loss of BRL161.8 million a year ago.

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 average 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 line.

          Luis Henrique Martinez, 5511-5186-2684,

          Marcio Minoru, 5511-5186-2811,

VARIG: Subsidiary To Reduce Fleet, Domestic Flights
A spokesman for Rio Sul, a subsidiary of leading Brazilian
airline Varig, revealed the company's plans of reducing its fleet
and domestic destinations in attempt to cut costs, says Reuters.

The spokesman also disclosed the company's plans to swap 16
Brazilian-built Embraer aircraft leased from Brazil's National
Economic and Social Development Bank (BNDES) for an unspecified
number of larger Boeing 737-700's.

"We still do not know what size the fleet will be or the
destinations that will be cut, but they will drop before the end
of the year," the spokesman said, adding that three Boeing 737-
700s were due to be delivered in coming months.

"The BNDES leasing is very high and we are not going to renew
it," he said. According to the spokesman, Embraer planes cost
about $150,000 per month.

The Rio Sul belt tightening comes after Varig announced it was
slashing 10 percent of its 17,500 workforce, plans to trim debt
to between US$300 million and US$400 million this year and began
a drive to find new domestic and foreign partners to inject cash
into the airline.

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

                 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

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

                 Leir s  Stortti
                 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

                 GE EQUITY
                 120 Long Ridge Rd.
                 Stamford, CT 06927
                 Phone: 203-357-3100
                 Fax: 203-357-3657
                 Home Page:
                 Joseph Parsons, President & CEO
                 John L. Flannery, Jr., Managing Director


VALORES BAVARIA: Shares May Fall Further On Losses
Shares Of Valores Bavaria SA, Colombia's largest diversified
investment holding company, are expected to drop further
following an announcement of a fourth-quarter loss. Valores fell
8.7 percent, to an all-time low of COP147 Wednesday in Bogota.

Investors are "skeptical that the Company's management can turn
around this bad situation," said Paul Weiss, head of equity
trading at Corredores Asociados SA brokerage.

Just recently, Valores Bavaria announced a fourth-quarter loss of
COP738.6 billion (US$319.7 million) in 2001, compared to a profit
of COP46.3 billion in the same period in the previous year. The
Company also revealed a 68-percent drop in its revenue to COP13.7
billion from COP42.5 billion a year earlier.

The Bogota-based company, in a statement, 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.

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

CONTACTS:  Valores Bavaria SA
           No 7A-47 Calle 94
           Santafe de Bogota DC
           Phone: +57 1 600 2100
           Home Page:
           Javier Aguirre Nogues, Chairman
           Leonor Montoya Alvarez, President
           Victor Alberto Machado Perez, Secretary


BANCA QUADRUM: IPAB Head Confirms Payment To Accountholders
The payment process for the deposits of Banca Quadrum
accountholders "is being carried out normally, in an orderly way
and without any problems," confirmed Julio Cesar Mendez Rubio,
executive secretary at Mexico's Bank Savings Protection Institute

According to Rubio, Banca Quadrum, which is in the process of
being liquidated, would be supported with an estimated MXN977
million (US$107 million).

IPAB was tasked to liquidate Banca Quadrum after the bank's
shareholders failed to find a new partner, nor inject the much-
needed MXN850 million (US$93.5 million) into the ailing bank.
IPAB has designated the consultancy KPMG as representative to
liquidate Banca Quadrum.

To see Banca Quadrum's financial statements:

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

           KPMG - Ciudad de Mexico
           Bosque de Duraznos Nœm. 55
           Bosques de las Lomas
           11700 Mexico, D.F.
           Tel.: +(55) 5246 83 00
           Fax.: +(55) 5596 80 60
           Guillermo Garcia-Naranjo, General Director
           Phone: +(55) 52 46 8320

CANON INC.: To Liquidate Mexican Operations
Canon Inc. announced Wednesday the closing of Canon Business
Machines, Inc. (CBM) of Costa Mesa, California, a manufacturer
and CBM's ubsidiary in Tijuana, Mexico, Canon Business Machines
de Mexico, S.A. de C.V. Both companies have been engaged in the
production of Canon's ink jet printers and related consumable
supplies. The companies will cease operations at the end of May
2002, and subsequently will be liquidated.

Since 1995, Canon Business Machines and Canon Business Machines
de Mexico have concentrated their business activities on the
production of ink jet printers and their related products,
primarily for the U.S. market. Because of the rapid drop in
prices and fierce competition for higher performance of ink jet
printers in the marketplace, Canon has been continuously
challenged to find ways of achieving more efficiency in its ink
jet printer business operations. Consequently, in accordance with
the company's production strategy, Canon's overseas ink jet
printer manufacturing will now be centralized in two Asian
factories, one in Thailand, the other in Vietnam.

Location: Costa Mesa, California, U.S.A.
President: Takayoshi Hanagata
Establishment: 1974
Ownership: Canon Inc.: 80.01%, Canon U.S.A., Inc.: 19.99%
Business summary: Production of Canon ink jet printers and
related consumable supplies
No. of employees: 33 (as of the end of Dec. 2001)

Location: Tijuana, Mexico
President: Takayoshi Hanagata
Establishment: 1988
Ownership: Canon Business Machines: 100%
Business summary: Production of Canon ink jet printers and
related consumable supplies
No. of employees: 417 (as of the end of Dec. 2001)

CINTRA: Senator Says Sell This Year Before Value Drops Further
An agreement to sell Cintra, the controlling company of airlines
Aeromexico and Mexicana, must be reached this year before the
value of the Company's assets slips any further, said Senator
Javier Corral in an Mexico City daily El Universal report.

So far this year, the Cintra's value has fallen US$400 million,
said Corral. The Bank Savings Protection Institute (IPAB) must
fulfill its mission to recover as much of its assets as possible,
the Senator added.

IPAB is looking to sell its 51-percent owned Cintra in a bid to
recover MXN18 billion (US$1.98 billion) this year from sales of
assets. Should the institution fail to sell Cintra, its present
debt of more than MXN174 billion (US$19.16 billion) will continue
to grow.

Julio Cesar Mendez, executive secretary of IPAB, said that
Cintra's sale process should be carried out "as soon as possible,
to diminish the costs that IPAB has in terms of liabilities."

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

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

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

           Mayte Sera Weitzman of AeroMexico, +1-713-744-8446, or

           Jenny Jenks, Marketing Director, International
           Division of Mexicana Airlines, +1-210-491-9764, or

GRUPO MEXICO: 4,000 Workers Striking Over Wage Hike
The number of workers striking in protest to Grupo Mexico's
proposed 5-percent wage hike has gone up to over 4,000 after
workers of a fourth mining unit joined the strike across four
Mexican states.

The additional workers walked out on operations at the Company's
electrolytic zinc refinery in San Luis Potosi state after Grupo
Mexico failed to meet union demands for a wage hike of between 8
percent and 10 percent.

"That's 800 more workers, or more than 4,000 mining families
affected," a spokeswoman for the National Mining and
Metallurgical Union said.

Grupo Mexico, which raised workers' salaries by 14 percent last
year, including increased benefits, has offered an "insulting" 5
percent wage rise with no extra benefits, the union said.

About 3,000 workers walked out of the copper mining, smelting and
refining facility at La Caridad, in Mexico's northern Sonora
state, and from zinc operations in Zacatecas and Coahuila states
on Tuesday.

On Thursday, union leaders met with company officials and the
Mexican Labor Ministry, which arbitrates union disputes, but were
unable to reach an agreement and prevent the walkout from the San
Luis Potosi unit.

Grupo Mexico, cash strapped and struggling to meet debt payments,
has adopted strict cost-cutting measures in recent months,
including mine shutdowns and extensive staff layoffs. The Company
said the measures, including job cuts of as many as 3,000
employees, would come as it shaves operating costs at mining
units that have become unprofitable in a floundering base metals

           Avenida Baja California 200,
           Colonia Roma Sur
           06760 Mexico, D.F.
           Phone: +52-55-5264-7775
           Fax: +52-55-5264-7769
           German Larrea Mota-Velasco, Chairman & CEO
           Xavier Garcia de Quevedo Topete, President & COO

T R I N I D A D   &   T O B A G O

BWIA: Antigua Union Comments On Planned Job Cuts
BWIA West Indies Airways is yet to deliver an official statement
to the Antigua & Barbuda Workers Union (A&BWU) about the
company's proposed job cuts.

However, in a report released by The Antigua Sun, A&BWU General-
Secretary Keithlyn Smith expressed objection to any staff cuts in
the airline's Antigua operations.

"We are obviously concerned, but we don't think that any of BWIA
staff in St. John's should be sent home. It is a small unit, with
about 40 workers," Smith said.

He pointed out that he had been in touch with the management of
BWIA, but "they don't have anything to tell us with regard to
BWIA staff in Antigua & Barbuda."

BWIA recently announced it would lay off 140 employees in an
attempt to keep costs down as a result of the turbulence in the
airline industry following the September 11 terrorist attack in
the US.

The airline is offering a voluntarily redundancy package before
final determination is made as to which employees would be

BWIA first reacted to decline in the travel market by reducing
flights by 10 percent, and subsequently cut travel agents'
commission to 6 percent from 9 percent.

Last October, BWIA carried 10,000 fewer passengers on its routes
through the Caribbean, eastern United States, Toronto and England
compared with the same period in 2000. Travel on the airline
plummeted by 25,000 in November when compared to November 2000.

Airline President Conrad Aleong estimates that if the decline in
travel keeps up, the airline could lose $30 million of its
average $260 million in annual revenue.

CONTACTS:  BWIA West Indies Airways
           Phone: + 868 627 2942
           Home Page:
           Conrad Aleong, President and CEO (Trinidad)
           Beatrix Carrington, VP Marketing and Sales (Barbados)
           Paul Schutz, Chief Financial Officer (Trinidad)


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 Ma. Cristina Canson, Editors.

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

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