TCRLA_Public/020312.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 12, 2002, Vol. 3, Issue 50

                           Headlines


A R G E N T I N A

ACINDAR: Belgo Provisions US$51 Mln On Argentine Exposure
BANCO GALICIA: Three Large Banks To Convert Debt to Equity
PECOM ENERGIA: Company Profile
SUNSHINE MINING: Directors Resign; Argentine Subsidiary Sold
SUNSHINE MINING: Company Profile


B A R B A D O S

APW LTD.: Q2 Earnings Due April 1; NYSE May Delist Shares


B E R M U D A

GLOBAL CROSSING: Announces Plan to Streamline Operations
GLOBAL CROSSING: House Panel Investigation Seeks Documents
GLOBAL CROSSING: The Emerson Firm Announces Class Action Filing


B R A Z I L

BELL CANADA: Amends $230M Credit Facility
EMBRAER: Launches Parts Distribution Center In China
VARIG: Controlling Shareholder Forfeits Right To Buy Stake


C H I L E

TELEFONICA CTC: Government Stands By Ruling On Tariff System


M E X I C O

ALFA: Shares Recover As US Tariff Hike Exempts Mexico
BANCA QUADRUM: New Capital Propsal Rejected; Shares Cancelled
CINTRA: CFC Head Says Sale Process Should Be Decided Now
CYDSA SA: Tender Offer Expiration Extended
PEGASO: Telefonica Moviles Buying Stake for US$884M
PEGASO: Company Profile


P E R U

AUSTRAL GROUP: Weak Operating Results Hamper Debt Restructuring


     - - - - - - - - - -


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

ACINDAR: Belgo Provisions US$51 Mln On Argentine Exposure
---------------------------------------------------------
Belgo-Mineira's 2001 results indicate that the Brazilian long
products steelmaker has set aside US$51 million in cash for its
Argentine subsidiary Acindar due to the country's economic and
political crisis.

Belgo posted net profits of BRL195.6 million (currently
US$83.2mn) for 2001, down 66 percent on BRL576mn the year before.
The company expects the Argentine economy to grow but is aware of
the inflation risk following the peso's devaluation.

Exempt from the safeguards recently imposed by US President
George Bush on steel imports, Acindar could make important
inroads into the US economy, and losses of US$51 million in 2001
could soon be reversed, according to Belgo president Antonio Jose
Polanczyk.

Acindar had been posting annual sales of some US$500 million, but
revenues dropped 55 percent in January.

In that same month, Acindar hired Credit Suisse First Boston
investment bank to help it restructure its debts, estimated at
US$400 million. Among its creditors is the International Finance
Corporation, to whom it owes US$100 million. Another US$100
million is connected to a bond issue and the remaining $200
million is in loans from Brazilian and foreign banks.

CONTACTS:  Jose I. Giraudo, Investor Relations Manager.
           Acindar S.A.
           Tel. (54 11) 4719 8674

           Andrea Dala
           Investor Relations Officer
           Acindar S.A.
           (54 11) 4719 8672

           CREDIT SUISSE FIRST BOSTON
           Esmeralda 130
           Piso 22
           1035 Buenos Aires
           Argentina
           Tel: 011 54 11 4131 2700
           Fax: 011 54 11 4131 2730

           Credit Suisse First Boston
           AVDA. Bouchard #547
           Piso 11
           Buenos Aires 1106
           Argentina
           Tel: 011 54 11 4312 3505


BANCO GALICIA: Three Large Banks To Convert Debt to Equity
----------------------------------------------------------
Barclays Plc, Dresdner Bank AG and J.P. Morgan Chase & Co., are
the three foreign banks planning to take a stake in Banco de
Galicia y Buenos Aires SA by converting loans into equity as part
of a strategy to bailout the financially-strapped Argentine bank,
reports Bloomberg.

The bailout scheme was approved by the Argentine central bank
last week and was scheduled to be announced over the weekend or
Monday.

Banco Galicia, short of cash after a run on deposits, is looking
to raise about ARS800 million (US$372 million) by selling its
best-performing loans to local banks through a trust and by
drawing on Argentina's deposit insurance fund, Seguro de
Depositos SA. Subsequently, Galicia would cancel about US$300
million of debts with international banks by offering shares in
exchange.

Contrary to previous reports, Galicia's owners - three Argentine
families that have run Banco Galicia for the last five decades --
may not give up control in order to save the bank from
bankruptcy. However, they will likely give up executive positions
inside the bank.

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

           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

           BARCLAYS PLC
           54 Lombard St.
           London EC3P 3AH, United Kingdom
           Phone: +44-20-7699-5000
           Fax: +44-20-7699-2721
           Home Page: http://www.barclays.co.uk/
           Contact:
           Cathy Turner, Head of Investor Relations
           Phone: (+44) (0)207 699 5000
           Fax: ((+44) (0)207 699 2721
                 OR
           Linda Wynns, Corporate Communications Vice President
           Barclays Bank PLC,
           75 Wall Street,
           New York,
           NY 10265,
           USA
           Phone: (+1) 212 412 3825


PECOM ENERGIA: Company Profile
------------------------------
NAME: Pecom EnergĦa S.A. de Perez Companc S.A.
      Maipu 1 Piso 22 C1084ABA
      Buenos Aires, Argentina

PHONE: (54-11) 4344-6000

FAX: (54-11) 4344-6315

WEBSITE: http://www.pecom.com.ar/

EXECUTIVE MANAGEMENT TEAM:
     Jorge Gregorio Perez, Chairman and Pres.
     Oscar Anibal Vicente, Vice Chairman and CEO
     Mario Lagrosa, CFO
     Tadeo Perich, COO

INVESTOR RELATIONS: Daniel Rennis
                    drennis@pecom.com

                    Alberto Jankowski
                    ajankows@pecom.com

                    Phone:(5411)4344-6655

TYPE OF BUSINESS: Perez Companc (formerly PC Holdings) controls
Pecom EnergĦa, an Argentine energy conglomerate. Pecom EnergĦa's
main business is oil and gas exploration and production. It
operates more than 70 fields in South America with proved
reserves of 1.2 billion barrels of oil equivalent, mostly oil and
natural gas liquids. Other operations include refineries and
petrochemical plants, and electricity generation, transmission,
and distribution. Perez Companc is also involved in marketing
hydrocarbon, and in transportation, forestry, agriculture, and
mining. The Perez Companc family and its charitable foundation
control about 60% of the firm, which also operates in Brazil,
Bolivia, Ecuador, Peru, and Venezuela.

SIC: Energy - Integrated Oil & Gas
     Utilities - Electric Utilities

EMPLOYEES: 3,731

SALES: $790.8 million (as of Mar. 6, 2002)

TOTAL CURRENT ASSETS: $620.6 Mln (Q ended Sept. 2001)

TOTAL CURRENT LIABILITIES: $813.0 Mln (Q ended Sept. 2001)

AUDITOR: Pistrelli, Diaz y Asociados
         (Buenos Aires Arthur Andersen Co.)
         25 de Mayo 487
         1st Floor 1002
         Buenos Aires, Argentina
         Tel: 54 11 4311 6644
              54 11 4311 6667
         Fax: 54 11 4312 8647

Last TCRLA Headline DATE:  Monday, March 11, 2002, Vol. 3, Issue
                           49


SUNSHINE MINING: Directors Resign; Argentine Subsidiary Sold
------------------------------------------------------------
In an official company press release, Sunshine Mining and
Refining Company (OTCBB:SSMR) announced Friday that four of its
five directors have resigned effective March 6, 2002.

Due to continued depressed silver prices, the Company is going
into a period of limited activity. John Simko has resigned as
president and has been succeeded in that role by the Company's
sole remaining director, Keith McCandlish. Mr. McCandlish will
not devote a substantial amount of his time to the Company's
affairs. The Company's remaining officers and employees are being
terminated during the month of March due to insufficient funding.
Certain former employees are expected to provide the Company
limited services on a consulting basis following their
termination of employment.

During 2001, affiliates of Elliott Associates, L.P. and Stonehill
Capital Management LLC (the "Lenders") entered into a secured
credit facility with Sunshine Argentina, Inc. that has been the
Company's only source of working capital, other than asset
disposals, for more than the last 12 months. As of October 3,
2001, the Company had borrowed the full $6.5 million commitment
under the secured credit facility. Subsequently, the Lenders
agreed to advance approximately $900 thousand of an optional $1.5
million credit facility amount. The Company is in default under
the secured credit facility. The future activity of the Company
and its remaining subsidiaries likely will be limited to
preservation and realization of any remaining assets. No proceeds
will be available to the Company or its subsidiaries outside of
the Lenders' discretion until they have been paid in full. The
Company does not expect the Lenders to recover the full amount
due under the loan. The Lenders have advised the Company that
they do not plan to make additional funds available to the
Company except with regard to certain payments in connection with
the protection or realization of their collateral and certain
wind down activities.

Elliott International, L.P., The Liverpool Limited Partnership,
Stonehill Institutional Partners, L.P. and Stonehill Offshore
Partners Limited (together the "Holders") each have exercised
their Call Options under the Call Option Agreement entered into
as of February 5, 2001 in connection with the Company's emergence
from bankruptcy. Pursuant to the Call Options, the Holders
purchased 100% of the stock of Sunshine Argentina, Inc. (which
owns the Pirquitas silver mine in Argentina subject to a mortgage
under the secured credit facility) by tendering shares of the
Company's common stock having a value of $1,000,000 based on the
last quoted bid price on the day preceding the date of the
purchase. The Pirquitas mine was one of the Company's principal
assets.

The Company does not have the resources to prepare its financial
statements and make filings with the Securities and Exchange
Commission and, therefore, will not make such filings unless its
financial circumstances improve, which the Company believes is
unlikely.

CONTACT:  Sunshine Mining and Refining Company, Dallas
          Mike Owens, 214/265-1377


SUNSHINE MINING: Company Profile
--------------------------------
NAME:  Sunshine Mining and Refining Company
       5956 Sherry Lane, Suite 1621
       Dallas, TX 75225

TELEPHONE:  (214) 265-1377

FAX: (214) 265-0324

EMAIL: investorrelations@sunshinemining.com

TYPE OF BUSINESS:  Sunshine Mining and Refining Company is
primarily engaged in mining silver, and owns properties in
Argentina, Mexico and the United States with significant silver
reserves and silver resource potential.

SIC:  MINING, QUARRYING OF NONMETALLIC MINERALS (NO FUELS) [1400]

EMPLOYEES:  236

TRIGGER EVENT:  On August 23, 2000, Sunshine Mining and Refining
Co. and three affiliates, Sunshine Argentina, Sunshine
Exploration, and Sunshine precious Metals Inc. sought Chapter 11
protection, listing assets of $33mn and debts of $55mn in papers
filed in the U.S. Bankruptcy Court in Delaware. The Dallas mining
company said the bankruptcy was triggered by operating losses
brought on by a silver market depressed for the last 12 years.

PRES, DIRECTOR: Keith McCandlish, 43

To see latest financial statements:
http://bankrupt.com/misc/Sunshine_Mining.doc



===============
B A R B A D O S
===============

APW LTD.: Q2 Earnings Due April 1; NYSE May Delist Shares
---------------------------------------------------------
On Monday, April 1, 2002, after the close of the market, APW Ltd.
(NYSE: APW) plans to announce financial results for its fiscal
second quarter ended February 28, 2002.

The company also announced that it has been advised by the New
York Stock Exchange that it has fallen below the Exchange's
continued listing criteria relating to minimum share price and
minimum market capitalization. The company is currently in
discussions with the Exchange with respect to these issues. As
previously communicated, APW continues to explore options to de-
leverage its balance sheet.

About APW Ltd.

APW Ltd. is a Technically Enabled Manufacturing Services "TEMS"
company that designs and manufactures large, complex
infrastructure products for OEMs in the communications, large
enterprise hardware and Internet markets.

APW Ltd. has particular skills in the areas of designing and
manufacturing enclosures, thermal management, power supplies and
backplanes; as well as core competencies in product and system
design, integration and supply chain management. APW Ltd.
operates in over 30 locations throughout North America, South
America, Europe and Asia.

CONTACTS:  APW Ltd.
           Mike Gasick, 262/523-7631
           URL: www.apw.com



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

GLOBAL CROSSING: Announces Plan to Streamline Operations
--------------------------------------------------------
Global Crossing announced Friday it is taking bold new measures
to simplify operations of Global Crossing and align its cost
structure with its projected revenues in order to accelerate its
efforts to become a more lean and muscular competitor. These
additional cost reductions will result from further cutbacks in
personnel and consolidation of real estate holdings, as well as
voluntary pay cuts by Global Crossing executives. These efforts
do not affect Asia Global Crossing.

Friday's announcements are part of the third phase of an effort
to restructure the business, begun when John Legere was appointed
Chief Executive Officer of Global Crossing in October, 2001. In
order to respond to the crisis that has hit the
telecommunications industry, Mr. Legere immediately ordered
significant expense and staff reductions. In January 2002, Global
Crossing sought Chapter 11 protection as part of a plan to
restructure its balance sheet and arrange for new investment in
the company.

"We're taking these significant actions on top of the decisions
already implemented, and in parallel with our ongoing
restructuring process," Mr. Legere said. "Not only are we
committed to delivering a healthy balance sheet, we are on a
clear path to becoming the world's most cost efficient and
globally competitive data communications service provider. We
have the network, technology and customer base in place -- and
now we will develop an athletic organization to leverage our
existing strengths. At the end of the restructuring process, we
will emerge a lean, tightly integrated organization with world-
class productivity and an ability to quickly scale up as demand
increases."

Mr. Legere added, "As we continue to improve our cost structure
and operating efficiencies, we become increasingly attractive to
strategic investors, financial investors and to our customers --
who will benefit from this transformation as we become more
efficient and service delivery improves."

Mr. Legere stated that an important attribute of the new business
model is to plan for slower growth in new revenues and customers.
Resources will be focused on ensuring existing customers are
satisfied. "Even during these challenging last few months, we
have steadily continued to serve nearly 100,000 customers around
the world. Those customers are our number one priority, and we're
allocating our resources to satisfy their needs, even if that
means sacrificing new customer growth."

EFFICIENCY MEASURES

Global Crossing is implementing measures designed to improve its
cost structure in a tough economic environment. These actions
include:

-- A previously announced voluntary staff reduction of
approximately 800 employees, effective Mar 8, 2002;
-- A further staff reduction of up to 1,600 employees, the
majority of whom will come from administration and sales;
-- Salary reductions among senior leadership and selected
managers;
-- Real estate consolidations rendering expected annual savings
of approximately $150 million through the closure of 71 offices
totaling more than 1.2 million square feet;
-- A range of program cuts and narrowing of service offerings;
and,
-- Process improvements that both reduce costs and improve
service through the ongoing deployment of automation systems and
streamlined workflows.

These measures are expected to reduce operating expenses from
$1.5 billion in 2001 to an expected $900 million in 2002 with a
projected year-end run rate of $720 million, excluding Asia
Global Crossing.

Capital expenditures are being dramatically reduced from $3.2
billion in 2001 to a budget of $200 million in 2002 (also for
non-Asian operations).

Headcount is being reduced from a high of approximately 15,000
employees at the beginning of 2001 to fewer than 6,000 employees
by the end of March, when the vast majority of voluntary and
involuntary separations are expected to have been completed.

Mr. Legere said the staff reductions were especially difficult in
the face of a vote of confidence by employees that became
apparent when fewer than 10% opted for the voluntary severance
program offered last week. "We deeply regret that we must make
additional reductions in our staff," Mr. Legere commented. "In
order to preserve as many jobs as possible, we are also reviewing
salary adjustments. To start that process, and as an indication
of my personal commitment to turn Global Crossing around, I have
taken a 30% reduction in salary, effective immediately."

EXPLORING SALE OF NON-CORE BUSINESSES

Global Crossing also said it is considering the sale of its
conferencing division and its non-core national network in the
United Kingdom. These measures are designed to maximize cash and
intensify focus on our core strategy of providing global data
services to more than 200 of the world's top business cities.

Mr. Legere said that the potential sale of the conferencing
division and the non-core UK national network are the most recent
in a series of initiatives related to Global Crossing's strategy
to divest non-core assets. In December 2001, Global Crossing
completed the $360 million sale of its IPC Trading Systems unit
to an investment group led by Goldman Sachs Capital Partners 2000
(GSCP), an affiliate of The Goldman Sachs Group, Inc. Earlier in
the year, Global Crossing announced that its Global Marine
Systems division was also for sale. Global Marine is the world
leader in providing submarine fiber optic cable installation and
maintenance service.

With a customer base that includes over 60% of the Fortune 100
companies, the conferencing unit is a leader in its market.
Efforts to re-establish this division as an independent operating
unit are already well underway, making the business fundamentally
more flexible and efficient, as well as a more attractive
prospect for either strategic or financial buyers. Global
Crossing acquired the conferencing unit in 1999 as part of the
acquisition of Frontier Corporation. The conferencing division
offers a portfolio of state-of-the-art conferencing services
including video, audio, and web conferencing.

Mr. Legere said Global Crossing will also consider actively
marketing the non-core portions of the national network services
business it acquired as part of the acquisition of Racal Telecom
in 1999. The UK network, which includes approximately 8,000 route
kilometers of fiber and reaches more than 2,000 cities and towns,
delivers managed data services to government and commercial
customers. Global Crossing would retain all core UK assets
essential to its strategy as a global data communications service
provider.

"In all cases, when talking with potential investors, we will
encourage them to consider an ongoing relationship with our
organization," Mr. Legere added. "When we sold IPC Trading
Systems, we retained our relationship as a preferred global
network services provider. We intend to do the same as part of
possible negotiations in these two new cases. Our network reach,
capacity and reliability are still integral to the success of
these businesses, and while we believe both the UK national
network and the conferencing division are attractive investments
independently, our in-place network access will continue to add
value."

ORGANIZATIONAL REALIGNMENTS

In concert with these efforts to further focus the organization,
Mr. Legere also announced a redeployment of certain members of
Global Crossing's senior leadership team.

Anthony Christie, senior vice president of product management,
will take on the additional responsibility for developing Global
Crossing's conferencing offerings as a self-sufficient business,
preparing the business to make a greater ongoing revenue
contribution or for a potential sale. Mr. Christie will continue
to report to Carl Grivner, COO. Chris Nash, senior vice president
of corporate development, will continue to work with the growing
number of potential investors interested in acquiring Global
Crossing, as well as managing the potential sale of portions of
Global Crossing's businesses.

Jose Antonio Rios, currently the president of Latin America and
the Caribbean operations, will also now manage all European
operations. Joe Perrone, executive vice president of finance,
will continue to focus on restructuring efforts. To enable him to
do so, administrative responsibilities including administration
of offices, travel, real estate and vendor management will be
distributed to other executives. John Comparin, executive vice
president of human resources, will add to his present duties
office administration and travel. Dan Wagner, the former head of
Global Crossing's European operations, will become senior vice
president of information technology, real estate, procurement and
vendor management. Mr. Wagner will report to Carl Grivner, COO.

CONTACTS:  Global Crossing Press Contacts:
           Cynthia Artin
           Vice President, Media Relations
           (973) 410-8421
           cynthia.artin@globalcrossing.com

           Becky Yeamans
           Director, Media Relations
           (973) 410-8421
           rebecca.yeamans@globalcrossing.com


GLOBAL CROSSING: House Panel Investigation Seeks Documents
----------------------------------------------------------
Ken Johnson, a spokesman for the U.S. House Energy and Commerce
Committee that is delving into Global Crossing Ltd, revealed that
the panel is planning to seek documents from Global Crossing Ltd.
through a letter, which was scheduled to be sent to the bankrupt
company Monday. Global Crossing has been silent thus far
regarding the forthcoming request.

A former employee of Global Crossing has accused the Bermuda-
based firm of using improper accounting methods to artificially
inflate revenues. With nearly US$12 billion in debt, the Company
faces an inquiry into its practices by the U.S. Securities and
Exchange Commission and the Federal Bureau of Investigation.

Global Crossing, which operates a fiber-optic network that
connects 200 cities around the world, filed for Chapter 11
bankruptcy on January 28 in the fourth-largest insolvency
proceeding in U.S. history.


GLOBAL CROSSING: The Emerson Firm Announces Class Action Filing
---------------------------------------------------------------
The Emerson Firm announced Thursday that a class action has been
filed in the United States District Court for the Western
District of New York on behalf of purchasers of Global Crossing,
LTD. (NYSE:GX) (OTCBB:GBLXQ) ("Global" or the "Company") common
stock during the period between April 28, 1999 and October 4,
2001, inclusive (the "Class Period").

The complaint charges certain of Global's officers and directors
violated the Securities Exchange Act of 1934. The complaint
charges that during the Class period, defendants issued false and
misleading statements, press releases, and SEC filings concerning
Global's financial condition, as well as the Company's ability to
generate sufficient Cash Revenue from new revenue sources
considering the failing market for broadband access. Prior to the
disclosure of Global's true financial condition, the Individual
Defendants and other Global insiders sold holdings of Global's
common stock for proceeds of more than $149 million. In addition,
during the Class Period defendants caused the Company to sell
notes on favorable terms to itself which generated $1 billion in
investor capital.

On 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 $1000 million"
compared to forecasts of $400 million made several times earlier
in the year. Following this series of announcements, Global's
share price 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.

CONTACT:  The Emerson Firm, Little Rock
          Anne Bond, Investor Relations Department
          (501) 907-2555
          jge@emersonfirm.com



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

BELL CANADA: Amends $230M Credit Facility
-----------------------------------------
Bell Canada International Inc. (NASDAQ:BCICF) (TSE:BI.) announced
Friday that it has closed the amendment of its existing credit
facility in the reduced amount of $230 million. This senior
secured term loan, with a consortium of leading international and
Canadian financial institutions, matures in March 2003 and
replaces an existing facility in the amount of $400 million that
was to mature in March 2002.

The closing of the amendment to the credit facility concludes
another element of BCI's recapitalization plan announced in
December 2001.

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

CONTACTS:  Bell Canada International Inc.
           Marie-Lise Gauthier, 514/392-2318
           marie-lise.gauthier@bci.ca


EMBRAER: Launches Parts Distribution Center In China
----------------------------------------------------
Embraer on March 4 announced the start of operations of its
Beijing Distribution Center, located within the Development Zone
of Beijing International Airport. The new warehouse occupies 750
square meters (8,073 sq. ft.), is operated by five people and
stocks over 6,000 part numbers. The move is part of Embraer's
program aimed at providing the best customer support in the aero
industry and was announced in June of last year during the 44th
Paris Air Show in Le Bourget.

Embraer's Executive Vice-President for Customer Services Artur
Coutinho stated; "We are very proud to add to our technical and
field support this new capability offering spare parts
distribution for our Chinese customer from Beijing."

The Beijing operating system is linked to Embraer's worldwide-
established warehouses located in Brazil, Australia, England,
France and the U.S. Thanks to a fully-integrated online system,
purchase orders and shipments can be placed electronically, thus
saving time and costs to the airlines.

Embraer's President and CEO MaurĦcio Botelho reinforced that the
new Beijing operation adds to the already well-known company's
image in the customer support market: "Embraer has already
positioned itself in the market as a benchmark in the customer
support business. Our warehouse in China is part of our
commitment on focusing on our clients' satisfaction".

Management of Embraer's Beijing Distribution Center is handled
jointly with the China Aviation Supplies Import and Export
Corporation (CASC).

CONTACTS:  EMBRAER
           Press office:
           Phone +55 12 3927 1311
           Fax + 55 12 3927 2411
           Press office mgr. Bob Sharp
           Email: bob.sharp@embraer.com.br
           OR
           Press officer Wagner Gonzalez
           Email: wagner.gonzalez@embraer.com.br


VARIG: Controlling Shareholder Forfeits Right To Buy Stake
----------------------------------------------------------
The Ruben Berta Foundation, the controlling shareholder of the
Brazilian flagship airline Varig, agreed at a shareholders'
meeting Friday to relinquish its right to buy Varig stock in a
global stock sale scheduled for June, according to a report by
Reuters.

"We are sending a clear message to the market that the foundation
doesn't want to sell its stake in Varig but that it accepts
having a non-majority stake," Manuel Guedes, Varig's investor
relations director, said after the meeting.

The foundation, which owns 87 percent of the voting shares of
Varig, had said earlier that it has no more cash to pump into the
airline. Its decision will pave a way for local or foreign
investors to gain bigger stakes or share control of Varig, the
leading airline in Latin America's largest country.

The size of the equity sale is yet to be defined, although Guedes
said the ideal would be to raise enough funds to reduce Varig's
US$900-million debt to around US$500 million.

Varig has not posted a profit since 1997.

"With this attitude, Varig will emerge stronger and more
competitive," Yutaka Imagawa, the chairman of the board of the
Ruben Berta Foundation, said in a statement.

Under Brazilian law, a foreign airline could acquire a
maximum of 20 percent of Varig.

The stock sale will include shares in Varig's units Varig Log and
its VEM maintenance unit while its Rio Sul and Nordeste units
will be excluded from the offer.



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

TELEFONICA CTC: Government Stands By Ruling On Tariff System
------------------------------------------------------------
Cia de Telecomunicaciones de Chile SA (CTC), a unit of Telefonica
SA, suffers another blow in its pursuit for a revision in its
tariff system as a prior tarrif ruling remains unchanged.
According to an AFX report, Public Works, Transport and
Telecommunications Minister Javier Etcheberry restated that the
government will not revise the decree governing the Company's
tariff system.

"It is not appropriate to change (the decree), therefore...
current regulations must be complied with," Etcheberry said.

However, Etcheberry revealed that the government is planning to
introduce a legislation harmonizing network access charges and
telephone tariffs in general.

Telefonica CTC had planned to file a suit against the government
for rejecting its bid to rescind a reduction in calling
rates. The lawsuit reportedly will seek US$300 million in
compensation for losses Telefonica CTC claims it has accrued
under the current tariff system.

The minister said the government complied with all the indicated
institutional requisites in handling CTC's request for a change
to its tariff system.

The decree governing CTC's tariff system took effect in 1999 and
is set to expire in May 2004.

CONTACTS:  Bruno Phillippi Irarr zabal, Chairman
           Claudio Mu oz Zuniga, CEO
           Julio Covarrubias Fernandez, CFO
           Ver>nica Gaete, Financial Analyst
           Mara Jos, Rodrguez, Financial Analyst
           Florencia Acosta, Financial Analyst
           Gisela Escobar, Head of Investor Relations

           THEIR ADDRES:
           Compa a de Telecomunicaciones de Chile S.A.
           Av. Providencia 111, Piso 2
           Santiago, Chile
           Phone: +56-2-691-2020
           Fax: +56-2-691-2392
           URL: http://www.ctc.cl



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

ALFA: Shares Recover As US Tariff Hike Exempts Mexico
-----------------------------------------------------
Shares of Alfa, S.A. de C.V., Mexico's second-largest industrial
group, advanced 2.7 percent on Friday to MXN14.80, says
Bloomberg. The move is part of a broader trend as the Company's
shares have soared 11 percent in the last four sessions on
optimism that new U.S. steel import tariffs excluding Mexico will
help Alfa's steelmaker subsidiary Hylsamex SA out of debt
problems.

Hylsamex is in the midst of talks with banks to restructure
nearly US$650 million in debt as its business reels from the
impact of the economic recession and slumping world steel prices.
Its creditor banks include Banamex-Citibank, BBVA Bancomer,
Bayerische Hypo-Vereins Bank and JP Morgan Chase.

Hylsamex has defaulted twice in the last three months on a total
of US$1 billion in debt.

CREDITOR BANKS:  BAYERISCHE HYPO- UND VEREINSBANK AG
                 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
                 Email: ir@hvbgroup.com
                 http://www.hypovereinsbank.de
                 Contacts:
                 Christian Becker-Hussong
                 Phone: +49 (89) 3 78 - 2 82 35
                 Email: Christian.Becker-Hussong@hvbgroup.com

                 Susan Eckenberg
                 Phone: +49 (89) 3 78 - 2 91 85
                 Email: Susan.Eckenberg@hvbgroup.com

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

                 BBVA BANCOMER
                 Av. Universidad 1200,
                 Col. Xoco, M,xico, D.F.
                 Phone: (52) (55) 5621-7912
                 http://www.bancomer.com.mx/
                 Contacts:
                 David S nchez-Tembleque
                 Tel: (52) (55) 5621-4938
                 Email:investor.relations@bbva.bancomer.com

                 Jos, de Jesos G>mez Dorantes
                 Tel: (52) (55) 5621-4718

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


BANCA QUADRUM: New Capital Propsal Rejected; Shares Cancelled
-------------------------------------------------------------
Banca Quadrum, S.A. held a general ordinary and extraordinary
shareholders' meeting on February 28, 2002.

At the meeting, shareholders approved (i) the Board of Directors'
annual report and the Company's audited financial statements for
the calendar year ended December 31, 2000, (ii) the Company's
unaudited financial statements for the period January 1, 2001
through November 30, 2001, and (iii) the Company's total capital
losses in the amount of 977.175 thousands of Mexican pesos
(approximately U.S. $105.6 million), thereby resulting in the
reduction of the Company's corporate capital.

In addition, shareholders did not vote in favor of a proposal to
raise 1,200.000 thousands of Mexican pesos (approximately U.S.
$129.7 million) in new capital for the Company at the meeting.
Since shareholders approved the Company's total capital losses,
thereby resulting in the reduction of the Company's corporate
capital, and did not vote in favor of the proposal to raise new
capital, all outstanding shares of the Company were cancelled;
consequently the Company's authorization to operate as a Mexican
bank was revoked by the Mexican Ministry of Finance and Public
Credit. Therefore, the Company will be liquidated in accordance
with Mexican law provisions, which appoints the Institute for the
Protection of Bank Savings (IPAB) as receiver.

CONTACTS:  Banca Quadrum, S.A., in Mexico
           Ernesto Rodriguez, Investor Relations
           Tel. 52-55-5284-5693
           E-mail: erodrigu@quadrum.com.mx


CINTRA: CFC Head Says Sale Process Should Be Decided Now
--------------------------------------------------------
Fernando Sanchez Ugarte, the president of the Federal Competition
Commission (CFC), said "it is time to decide the sale" of the
companies managed by Cintra, which include Mexicana de Aviacion
and Aeromexico, relates Notimex.

According to the CFC head, Mexico's Bank Savings Protection
Institute (IPAB), which controls 51 percent of Cintra, must find
a solution to the problem regarding the sale process of the
government airline holding company.

"Mexico needs a developed air transportation sector with a solid
position from the financial point of viewpoint," S nchez said.

Just recently, Senator Javier Corral said that an agreement to
sell Cintra must be reached this year before the value of the
Company's assets, which so far this year has fallen US$400
million, slips any further. The IPAB must fulfill its mission to
recover as much of its assets as possible, the Senator added.

IPAB is looking to sell 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, also 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."

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

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

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

           AEROMEXICO
           Mayte Sera Weitzman of AeroMexico, +1-713-744-8446, or
           mweitzman@aeromexico.com

           MEXICANA DE AVIACION
           Jenny Jenks, Marketing Director, International
           Division of Mexicana Airlines, +1-210-491-9764, or
           ennyjenks@mexicana.com


CYDSA SA: Tender Offer Expiration Extended
------------------------------------------
Cydsa, S.A. de C.V. (BMV: CYDSASA) announced Friday that, in
connection with its proxy solicitation and tender offer relating
to its outstanding U.S.$200,000,000 9.375% Notes due 2002, it has
further extended the expiration date for the tender offer.

Cydsa has extended the "Offer Expiration Date" to 5:00 p.m., New
York City time, on Friday, March 15, 2002, unless further
extended. The Offer Expiration Date is the time by which eligible
holders of record must deliver and the depositary must receive
tenders of notes in order to be eligible to participate in the
tender offer.

As previously announced, Cydsa expects to announce in the near
future the date, time and location of the Adjourned Meeting of
Noteholders and will send a notice of adjourned meeting to
holders of the notes. Cydsa will also announce in the near future
the date and time by which holders of record must deliver duly
executed proxies in order to vote by proxy at the Adjourned
Meeting.

Cydsa's proxy solicitation and offer to purchase for cash is made
upon the terms and conditions set forth in the Proxy Solicitation
Statement and Offer to Purchase, dated January 25, 2002 (the
"Statement"). Prior to the date hereof, Cydsa distributed to all
holders of the notes a letter of eligibility requesting the
holder to return a certification as to whether it is (1) a
Qualified Institutional Buyer (as defined in Rule 144A under the
United States Securities Act of 1933, as amended (the "Securities
Act")), (2) not in the United States (as contemplated in Rule
903(a)(1) of Regulation S under the Securities Act) or (3) a
dealer or other professional fiduciary organized, incorporated,
or (if an individual) resident in the United States holding a
discretionary account or similar account (other than an estate or
trust) for the benefit or account of a non-U.S. person (as
contemplated by Rule 903(a)(1) of Regulation S under the
Securities Act). Only holders who have completed and returned the
certification in the letter of eligibility ("eligible holders")
are authorized to receive or review the Statement or to
participate in the proxy solicitation and the tender offer made
thereby.

CONTACT:  CYDSA, S.A. DE C.V., IN MEXICO
          Jesus Montemayor, Treasury Director
          Tel. +011-528-18-152-4585
          E-mail: jmontemayor@cydsa.com


PEGASO: Telefonica Moviles Buying Stake for US$884M
----------------------------------------------------
Spanish cellphone operator Telefonica Moviles announced over the
weekend that it would buy 65 percent of Mexico's Pegaso from
Sprint, Leap Wireless and financial investors for US$70.5
million, reports Reuters. Additionally, Moviles would also assume
Pegaso's debt of at least 10 times the said amount.

The Spanish company said it had agreed on a value of US$1.36
billion for the whole of Pegaso. The difference between the cash
price and the valuation wasn't explained but a source close to
the deal said most of the balance was made up of debt, and
Telefonica would assume 65 percent of that, implying it would
take on debt and other commitments worth an additional US$813.5
million, for a total price of US$884 million.

Telefonica said Mexico's Burillo group, led by investor Alejandro
Burillo Azcarraga, would continue to own the other 35 percent in
the operator.

"Pegaso is a company with a lot of debt, they've had financial
trouble and that's why they're selling," said Francisco Salvador,
director of equities at Ahorro Corporacion Financiera in Madrid,
which manages EUR9 billion in funds.

The acquisition price values Pegaso subscribers at about US$1,700
each, which is at the high end of analysts' expectations but
lower than the US$2,500 per subscriber companies have paid in
Brazil.

"It's expensive but not ridiculous," said Ali.


PEGASO: Company Profile
-----------------------
NAME: The PEGASO
      Pegaso PCS, SA of CV
      Stroll of the Tamarinds 400A,
      Floor 4, Forests of Hills,
      Mexico, DF 05120

FAX: (55) 5261.6691

PHONE: (55) 5261,6600

E-MAIL: atencionclientes@pegasopcs.com.mx

WEBSITE: http://www.pegasopcs.com.mx/

EXECUTIVE MANAGEMENT TEAM:

      Alexander Burillo Azcarraga, Council of Administration
                                   President
      Muddy Alexander Ten, Partner and President
Alexander Orva¤anos Alatorre, Commercial Vice-president
Rub‚n Camiro, Vice-president of Administration and Finances

TYPE OF BUSINESS: The PEGASO, is a company dedicated to the
sector of the telecommunications and data. The company is
integrated by a group of important Mexican and foreign investors,
who have participated during years in the development of mass
media.

With the experience that this entails, the partnership conceived
by Alexander Burillo Azc rraga and directed by Muddy Alexander
Ten, enters to the sector of the telecommunications with the
support of several groups leaders to world-wide level, between
which they emphasize: Pegaso Group, Sprint PCS, Leap Wireless
Int., Citicorp Capital Equity, and Capital Ig-GE Nissho Iwai
Corporation.

INVESTORS:
           1.) Sprint Group
               6160 Sprint Pkwy.
               Overland Park, KS 66251
               Phone: 800-829-0965
               Fax: 816-854-0903

           2.) Citicorp
               Home Page: http://www.citicorp.com/

     3.) Leap Wireless
               10307 Pacific Center Ct.
               San Diego, CA 92121
               Phone: 858-882-6000
               Fax: 858-882-6010

     4.) Nisho Iwai Corporation
           5.) Pegaso Group

     6.) AIG - EC Latin America Fund Infrastructure



=======
P E R U
=======

AUSTRAL GROUP: Weak Operating Results Hamper Debt Restructuring
---------------------------------------------------------------
Peruvian fishing company is having a hard time restructuring its
finances and refinancing its debts with creditors due to its
recent poor performance.

Austral posted sales of US$114.4 million last year and had pre
tax profits of US$22.5 million. But these figures fell short of
the predictions originally presented in the creditors' agreement.

In 2001, Austral also slashed labor and management costs saving
US$1.5 million, and reduced energy costs by 25 percent to 30
percent.



               ***********


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.

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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The TCR Latin America subscription rate is $575 per half-year,
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