TCRLA_Public/020327.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                   L A T I N   A M E R I C A

            Wednesday, March 27, 2002, Vol. 3, Issue 61

                           Headlines

A R G E N T I N A

ARGENTINE FIRMS: Default Warnings Escalate as Problems Worsen
CENTRAL PUERTO: Unable To Purchase Fuel Oil For Coming Winter
METROGAS: Suspends Payments on $420M Debt


B E R M U D A

GLOBAL CROSSING: Bidders Applaud `Buyer Protection' Approval
GLOBAL CROSSING: Dave Carey Named Exec. VP Of Enterprise Sales


B R A Z I L

CEMIG: Expectations Improve, 4Q01 Numbers May Reward Shareholders
GLOBO CABO: Shares Up Following Release Of New Presidential Poll
TELEMAR: Analysts May Revise Estimates On Slow Earnings Growth


C H I L E

MADECO SA: 4Q01 Results Disappoint, Hires SSB to Restructure


M E X I C O

AHMSA: Reaches Wage Accord With Workers; Avoids Strike
EMPRESAS ICA: 2001 Operating Loss Widens To US$97.9 Mln
EMPRESAS ICA: S&P Cuts Outlook Due To Disappointing 2001 Results
HYLSA: Launches Debt $300M Exchange Offer, Seeks Waivers
HYLSA: 4Q01 Preliminary Earnings Flat to Negative
PEMEX: Union Strongly Opposes Labor Cuts in Restructuring Plan
PEMEX: `02 Export Earnings Down 31% Through February
PEMEX: Senator Proposes Administrative Board Overhaul


P A R A G U A Y

CORPOSANA: Privatization Sale Documents Deadline Extended


V E N E Z U E L A

BANCO PROVINCIAL: S&P Affirms Ratings; Off CreditWatch


     - - - - - - - - - -


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

ARGENTINE FIRMS: Default Warnings Escalate as Problems Worsen
-------------------------------------------------------------
The Capital Foundation, a private group, released a report Monday
concerning the future of the Argentine firms that sold bonds in
foreign markets during the past decade.

In its report, the group warned that these firms face "enormous
financial problems" and are "at imminent risk of generalized
default."

The devaluation of the peso in January as well as "the
unprecedented depression that has been punishing the Argentine
economy for more than four years," have led to "the extensive
deterioration in the corporate debt rating" of these companies,
the report said.

According to the foundation, some US$1.95 billion in bonds were
scheduled to mature during the first quarter of this year.

Aside from the devaluation, which ended more than a decade when
the national currency was pegged to the dollar, and the
conversion of the economy to pesos, the Argentine administration
also last December suspended payment of the government debt.

The report also noted the restrictions that the Central Bank has
imposed on transferring funds abroad and the delay in
negotiations for a new agreement with the International Monetary
Fund that could channel financial aid to Argentina.

Although private firms were able to pay US$2.881 billion, or 84
percent, of their US$3.422 billion expired capital and interest
debt from December 2001 to March 2002, there were 18 large firms
that defaulted on the remaining 16 percent or US$541 million in
corporate debt and were placed on selective default rating.

"The important firms that defaulted are still a minority, and
they correspond principally to the service and communications
sector where many companies depend almost exclusively on the
domestic market and invoice in pesos but have dollar debts," the
Capital Foundation said.

Among these firms are Telefonica de Argentina telephony company,
Edenor power firm, Metrogas gas distributor, Acindar steel mill,
the Disco supermarket chain and food firms Mastellone and Fargo.
These firms "were caught unawares by the measures and economic
situation during the first quarter" of the year.

There are also several media communication firms such as
CableVision, Multicanal, CTI Holding and Impsat, as well as Agea
which prints Clarin, Argentina's largest newspaper, in this group
of beleaguered firms.

CONTACTS:

TELEFONICA DE ARGENTINA
Tucuman 1, 18th Floor, 1049
Buenos Aires, Argentina
Phone: (212) 688-6840
Home Page: http://www.telefonica.com.ar
Contacts:
Carlos Fernandez-Prida Mendez Nunez, Chairman
Paul Burton Savoldelli, Vice Chairman
Fernando Raul Borio, Secretary

METROGAS S.A.
Gregorio Araoz de Lamadrid 1360
Buenos Aires, Argentina
Phone: +54-11-4309-1010
Fax: +54-11-4309-1025
E-mail: info@metrogas.com.ar
Home Page: http://www.metrogas.com.ar/english/
Contacts:
Luis Domenech CFO
Phone: (54-11) 4309-1434
Fax: (54-11) 4309-1277

Eugenia Gatti, Investor Relations
Phone: (54-11) 4309-1381
Fax: (54-11) 4309-1477

DISCO S.A.
Larrea 847, Piso 1
1117 Buenos Aires, Argentina
Phone: +54-11-4964-8000
Fax: +54-11-4964-8039
Home Page: http://www.disco.com.ar
Contacts:
Eduardo R. Orteu, Chief Executive Officer
Jose Sanchez, Chief Financial Officer

ACINDAR INDUSTRIA ARGENTINA DE ACEROS SA
1609 Boulogne, San Isidro
E. Zeballos Esq. Uruguay
Buenos Aires
Argentina
Phone: +54 11 47198500
Fax:   +54 11 47198501
Home Page: http://www.acindar.com.ar/ir/eng/default.htm
Contacts:
Lic. Jos‚ I. Giraudo, Investor Relations Manager
Phone: (54-11) 4 719-8674
Fax:   (54-11) 4 719-8501 Int. 8674

Lic. Andrea Dala, Investor Relations Officer
Phone: (54-11) 4 719-8672
Fax: (54-11) 4 719-8501 Int. 8672

MULTICANAL S.A.
Avalos 2057
C1431DPM Buenos Aires, Argentina
Tel: 54 11 4524-4700
Fax: 54 11 4370-5162
Contact: Fabian Melnitzky
         E-mail: fmelnitz@redarg.com.ar

CABLEVISION
Bondpland 1773
1414 Buenos Aires
Argentina
Tel: 54 11 47786060
Fax: 54 11 47741016
Home Page: www.cablevision.com.ar
Contacts:
Fabian To de Paul, President

Investor relations
E-mail: spena@cablevision.com.ar
mpigretti@cablevision.com.ar

IMPSAT ARGENTINA
Alferez Pareja 256
c1107bjd Buenos Aires
Phone: +54-11-5170-0000
Fax:   +54-11-5170-6500
Home Page: http://www.impsat.com/
Contact:
Sr Gonzalo Alende Serra
Vice President Investor Relations
Phone: +54-11-5170-3700

ARTE GRA'FICO EDITORIAL ARGENTINO S.A.. (AGEA)
Daily Bugler - Daily Sport Ol‚
Tacuar¡ 1846
C1139AAN Buenos Aires, Argentina
Tel: 54 11 4309-7500
Fax: 54 11 4309-7200
Contact: Jimena Olazar
         E-mail: jolazar@agea.com.ar

MASTELLONE HNOS. S.A.
Av. Leandro N. Alem 720
(1001) - Buenos Aires
Argentina
Phone: 54 1 318-5000
Fax:   54 1 313-6822
E-mail:
Contacts: laserenisima@mastellone.com.ar
Pascual Mastellone, President
Marcelo Markous, Vicepresident and General Manager

COMPANIA DE ALIMENTOS FARGO S.A.
Panamericana Y Marcos Sastre
1617 General Pacheco
Buenos Aires, Argentina
Phone: 541-14-736-6500
Fax: 541-14-736-6540
Contacts:
Carlos Barbero
E-mail: vbullrich@fargo.com.ar

EDENOR S.A.
Azopardo Building
Azopardo 1025 (1107) Capital Federal
Phone: (54-11) 4346-5000
Fax: (54-11) 4346-5300
E-mai: to ofitel@edenor.com.ar
Home Page: http://www.edenor.com.ar
Contact:
Riuttort Marc, Treasurer
Fax: (54 1) 348-2149



CENTRAL PUERTO: Unable To Purchase Fuel Oil For Coming Winter
-------------------------------------------------------------
Argentine generator Central Puerto Sociedad Anonima asked the
energy department to implement measures that would allow it to
buy fuel oil, to restore the wholesale market to a competitive,
transparent market in which generators can cover costs.

Central Puerto expects to have to buy US$15 million of fuel oil
(136,000 tonnes) for the coming winter. However, the Company does
not have the financial resources to purchase fuel oil, the
Company's chairman Jacques Chambert-Loir confirmed in an open
letter to energy secretary Alieto Guadagni.

The lack of financing arises because spot market prices have
fallen to levels below production costs as a result of the
government ending the peso-dollar parity. As a result, Puerto
cannot access financial markets because it is in default.

Central Puerto currently sells 75 percent of its output on the
spot market, where it is sustaining significant losses because of
what it claims is the "illegal" action of wholesale market
administrator Cammesa in how it has interpreted energy department
rules.

In a letter, Central Puerto asked the energy department to meet
with the Company to discuss the situation in greater detail.
Central Puerto suspended payments on all financial obligations in
February as a result of the economic downturn in Argentina.

The Company's debts total US$300 million, including US$120
million with French bank Sofax, 100-percent owned by Central
Puerto's majority owner TotalfinaElf; US$110 million with the
Bank of America with guarantees from US-based Exim Bank; US$11.5
million with Bankboston; and US$60 million with a syndicate of
banks. Of the smallest loan, US$50 million is in dollars and
US$10 million is a peso-denominated loan from Banco de la
Provincia de Buenos Aires.

Central Puerto Sociedad Anonima is in the generation,
transportation, distribution, production, marketing,
commercialization, import and in block sale of electric energy
and provision of technical and consultancy services.

CONTACTS:  CENTRAL PUERTO
           Jacques Chambert Loir, CEO
           2701 Avenida Tomas A Edison
           Buenos Aires, Argentina
           Phone   +54 1 317 5074
           Home Page http://www.centralpuerto.com

CREDITORS:  BANCO DE LA PROVINCIA DE BUENOS AIRES
            San Martin 137 (C1004AAC)
            Buenos Aires, Repœblica Argentina
            Tel. 054 (011) 4347-0000

            BANK OF AMERICA - Corporate Headquarters
            Bank of America Corporate Center
            100 North Tryon Street
            Charlotte, North Carolina 28255
            www.BankofAmerica.com
            Contacts: Ken Lewis, Chairman & CEO


METROGAS: Suspends Payments on $420M Debt
-----------------------------------------
Metrogas SA, the Argentinean gas distribution company, announced
a freeze on principle and interest payments due on liabilities
totaling nearly US$420 million. The natural gas distributor
blamed the move on "adverse changes" in the local economy that's
beginning to crumble under the burden of a grinding four-year
recession.

"It is time to pay debt maturities, and the Company does not have
the money to meet them," said a company spokesman. "(Utility)
rates were frozen by the government making life hell for those
operating in the sector."

Metrogas is said to be in talks to revise contracts with the
Argentine government. The Company plans to restructure all its
debt after renegotiating contracts with Argentina. It has hired
JP Morgan Securities Inc and legal advisers to help develop a
plan.

Argentina's financial woes forced British Gas (BG) to write down
the book value of its 46-percent stake in Metrogas to GBP10
million in February.

BG invested GBP130 million in the Company but has adjusted the
book value to take account of the effect of the collapse in the
Argentine currency.

CONTACTS:  METROGAS
           Alberto Alfredo Alvarez, President
           William Harvey Adamson, First VP
           Gen. Director Enrique Barruti, HR Director
           Fernando Aceiro New Bus. Director
           Luis Domenech Admin. and Fin. Director

           Their Address:
           G. Araoz de Lamadrid 1360
           1267 Buenos Aires, Argentina
           Phone: (800) 422-2066
           Fax: (201) 262-2541
           Email: info@metrogas.com.ar

           MORGAN STANLEY, DEAN WITTER & COMPANY
           1585 Broadway
           New York, New York 10036
           United States
           Phone: +1 212 761-4000
           Home Page http://www.msdw.com



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

GLOBAL CROSSING: Bidders Applaud `Buyer Protection' Approval
------------------------------------------------------------
Hutchison Whampoa Ltd. and Singapore Technologies Telemedia Pte.
Ltd. issued the following statement in response to the United
States Bankruptcy Court's approval of the Buyer Protection Motion
relating to the letter of intent to acquire Global Crossing:

"We are pleased to have received Court approval on a buyer
protection motion that was supported by Global Crossing and its
creditors.

"While this is the first step in the process, it provides the
necessary framework to work towards a definitive agreement with
Global Crossing that provides value for its creditors, customers
and employees. It is our goal to work with the company's
management and creditors to facilitate a reorganization of the
business as quickly as possible in order to ensure continued
service to Global Crossing's customers."

Hutchison Whampoa

Hutchison Whampoa is a Hong Kong-based multinational conglomerate
with origins dating back to the 1800s. Hutchison is also part of
the Li Ka-shing group of companies, which together represent
about 15% of the total market capitalization of the Hong Kong
stock market. In 2000, consolidated turnover (including
associates) was over US$10 billion, and consolidated net profit
was approximately US$4.4 billion.

With approximately 100,000 employees worldwide, Hutchison
operates five core businesses in 34 countries: ports and related
services; telecommunications and e-commerce; property and hotels;
retail and manufacturing; and energy and infrastructure.

Singapore Technologies Telemedia

Singapore Technologies Telemedia (ST Telemedia) is a leading
Info- communications group that provides voice, data and video
services. It focuses on three core businesses: Data & Voice,
Broadband, and e-services.

ST Telemedia aims to be a market leader in data and IP
communications, seamlessly connecting businesses, individuals and
information in any media and with innovative and reliable
information communication technologies.

Through its subsidiaries and associate companies, ST Telemedia
provides fixed and mobile telecom services, wireless data
communications services, Internet mobile services, global IP
network services, managed hosting services, satellite services,
broadband cable and e-business software development services.

ST Telemedia is a wholly-owned subsidiary of the Singapore
Technologies group.

CONTACT:  Brunswick Group
          Steve Lipin or Michael Buckley
          +1-212-333-3810

          HUTCHISON WHAMPOA
          Laura Cheung, +852-2128-1289,
          Email: laurac@hwl.com.hk

          Singapore Technologies Telemedia
          Melinda Tan, +65-6723-8690
          Email: tanmelinda@stt.st.com.sg


GLOBAL CROSSING: Dave Carey Named Exec. VP Of Enterprise Sales
--------------------------------------------------------------
Global Crossing announced Monday the appointment of Dave Carey as
executive vice president of enterprise sales. Effective
immediately, Carey will oversee all sales and marketing
activities relating to Global Crossing's enterprise customers.

"Dave Carey knows telecom, he knows Global Crossing and he knows
sales and marketing," said John Legere, chief executive officer
of Global Crossing. "Dave has an impressive background in sales
and the proven ability to make tough, smart decisions. He's also
earned the trust and respect of the teams he supports and of
colleagues across the company."

Carey previously served in two senior vice president positions at
Global Crossing -- in global network development and in network
and business development. His accomplishments include leading
development of a fundamental network planning process for Global
Crossing's worldwide, multi-layer protocol network.

When Global Crossing merged with Frontier Communications in 1999,
Carey was serving as Frontier's senior vice-president of
marketing and chief marketing officer. Carey previously served as
president and CEO of LG&E Natural, Inc., a subsidiary of LG&E
Energy Corporation of Louisville, Kentucky and held a number of
increasingly responsible marketing and sales positions during 14
years with AT&T, including serving as director of marketing for
AT&T's General Business Systems unit.

Carey holds an M.S. degree in management science from MIT, and a
B.S. degree in industrial distribution from Clarkson University
in Potsdam, N.Y. He also was appointed to a Sloan Fellowship by
MIT.

Carey is succeeding Peg Lockwood, who is leaving Global Crossing
to pursue other opportunities.

On January 28, 2002, Global Crossing and certain of its
affiliates (excluding Asia Global Crossing and its subsidiaries)
commenced Chapter 11 cases in the United States Bankruptcy Court
for the Southern District of New York and coordinated proceedings
in the Supreme Court of Bermuda.

     CONTACT GLOBAL CROSSING:
     Press Contacts
     Rebecca Yeamans
     + 1 973-410-8421
     Rebecca.Yeamans@globalcrossing.com

     Tisha Kresler
     + 1 973-410-8666
     Tisha.Kresler@globalcrossing.com

     Analysts/Investors Contact
     Ken Simril
     + 1 310-385-5200
     investors@globalcrossing.com



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

CEMIG: Expectations Improve, 4Q01 Numbers May Reward Shareholders
-----------------------------------------------------------------
Analysts are predicting Shares of Cia. Energetica de Minas Gerais
may gain before Tuesday's release of its fourth- quarter results,
according to Bloomberg.

Generating, transmiting and distributing electricity, CEMIG is
Brazil's largest utility. The company is expected to report
improved results after receiving compensation for a decline in
sales during the power rationing.

The utility's results are also likely to benefit from a 16
percent currency appreciation in the period, as about 76 percent
of its BRL2.9- billion ($1.2 billion) debt is dollar denominated.

On Friday, Cemig shares fell 4.7 percent to BRL34.01.

CONTACTS:  CEMIG
           Avenida Barbacena, 1200
           Sto Agostinho  30123-970 Belo Horizonte - MG
           Brazil
           Phone   +55 31 299 4900
           Home Page http://www.cemig.com.br
           Contacts:
           Djalma Bastos De Morais, Chairman
           Geraldo De Oliveira Faria, Vice Chairman
           Cristiano Correa De Barros, Finance Director


GLOBO CABO: Shares Up Following Release Of New Presidential Poll
----------------------------------------------------------------
Globo Cabo SA, Brazil's biggest cable television company, saw its
shares climb 4 percent to BRL0.52 on optimism that gains by Jose
Serra, the likely candidate for Brazilian President Fernando
Henrique Cardoso's party, suggest business-friendly policies will
continue after the election, says Bloomberg.

The Company's stock was off 21 percent last week and 13 percent
the week before after the announcing the sale of BRL1 billion
($420 million) in additional equity, raising concern over
dilution issues.

"The new presidential poll that came out was better than expected
for the government's candidate and put a positive sentiment on
the market," said Fabio Gheilerman, head of Latin America trading
with J.P. Morgan Securities in New York.

To see financial statements:
http://bankrupt.com/misc/globo_cabo.pdf

CONTACT:  GLOBO CABO
          Investor Relations:
          Luis Henrique Martinez, +5511-5186-2684,
          lmartinez@globocabo.com.br

          Marcio Minoru, +5511-5186-2811,
          minoru@globocabo.com.br

          BNDES
          Main Office
          Av. Republica do Chile,
          100 Rio de Janeiro - RJ
          Phone: (021) 2277-7447/6978
          Home Page: http://www.bndes.gov.br/english/welcome.htm


TELEMAR: Analysts May Revise Estimates On Slow Earnings Growth
--------------------------------------------------------------
Shares of Brazil's biggest fixed-line phone company Telemar fell
for 2.5 percent to BRL29.74, while the Company's U.S.-traded
American depositary receipt fell 2.3 percent to US$12.65, reports
Bloomberg.

Robert Berges, head Latin America equity strategist with Merrill
Lynch & Co. in New York, downgraded Telemar to "underweight" the
Morgan Stanley Capital International Latin America benchmark
index, from "overweight" in a report.

"Telemar isn't going to be growing earnings as fast, so there's a
risk that analysts will revise their estimates downward," Berges
said.

Telemar reportedly plans to sell US$500 million Eurobonds.
Telemar Norte Leste SA, the operating phone company for Brazil's
eastern states, sank 4.6 percent to BRL51. Telemar said earlier
this month that it would increase debt this year by about 30
percent.

CONTACT:

TELE NORTE LESTE PARTICIPA?OES S.A. (TELEMAR)
Rua Lauro Miller 116/22 andar-Botafogo
22299-900 Rio de Janeiro, Brazil
Phone: +55-61-327-5544
Fax: +55-61-617-7090
Home Page: http://www.telemar.com.br
Contacts:
Sergio Lins de Andrade, Chairman
Jose Fernandes Pauletti, VP Operations and Interim President
Alvaro A.C. dos Santos, VP Finance



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

MADECO SA: 4Q01 Results Disappoint, Hires SSB to Restructure
------------------------------------------------------------
Madeco S.A. ("Madeco") announced its consolidated financial
results in Chilean GAAP for the quarter and fiscal year ended
December 31st, 2001.  All figures are expressed in Chilean pesos
as of December 31st, 2001 (the year-over-year CPI variation
totaled 3.1%) and US dollar conversions expressed in this report
are based on the exchange rate effective on that same date
(US$1.00 = Ch$654.79).

Highlights

The fourth quarter was a very difficult one for the Company.
Subsequent to the pronounced decline of Brazil's demand for
telecommunications cable beginning in August 2001, the Company
confronted additional negative factors which significantly
impacted its operations - the tragedy of September 11th, which
affected economic growth rates and demand levels globally, and
the economic and political crisis of Argentina.   As a
consequence of these factors, Madeco was required to implement
drastic restructuring measures, which included the temporary
cessation of activities in our wire and cable and brass mills
operations in Argentina as well as significant reduction of
personnel in Brazil.

Given the varied investments that we have in our neighboring
country, the Argentine crisis has been particularly negative for
the Company.  Firstly, we made the painful decision to
temporarily close the five production facilities related to the
production of wire and cable and/or brass mills products.  In
addition, it was necessary to make provisions for the potential
valuation adjustments of our assets in that country, with the
objective of registering our best estimate to date of the effects
that could be derived from Argentina's turmoil.

Moreover, the Company hired Salomon Smith Barney at the beginning
of the year 2002; the investment bank has been hired to advise
and coordinate a financial restructuring plan for Madeco. The
plan contemplates the restructuring of the Company's financial
liabilities, the optimization and rationalization of use of funds
and working capital of Madeco and an analysis of a proposal to
increase the equity of the Company.

The Company continues to adjust its operations to the existing
market conditions.  To that end, we have recently taken the
strategic decision to focus on the production of aluminum
profiles, and exit the complementary curtain wall installation
business.  We believe that as a consequence of our efforts, the
Company will be better positioned to exploit opportunities when
Argentina resolves its current crisis and stronger economic
growth rates return to the region.

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

CONTACT:  MADECO
          Marisol Fernandez, Investor Relations
          Voice : (56 2) 520-1380
          Fax  : (56 2) 520-1545
          E-mail  : mfl@madeco.cl
          Web Site: www.madeco.cl

           OR

          Oscar Ruiz-tagle Humeres, Chairman
          Albert Cussen Mackenna, CEO
          Santiago Edwards Morice, CFO
          Enrique S. Arangua, General Counsel
          Their Address:
          Ureta Cox 930
          Santiago Chile
          Phone   +56 2 520 1000



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

AHMSA: Reaches Wage Accord With Workers; Avoids Strike
------------------------------------------------------
A threatening strike at Planta Uno of Altos Hornos de Mexico
(AHMSA) was averted after workers accepted a 5.5-percent salary
increase offered by the Company during negotiations with the
union. Both parties also agreed to review the contracts of
another three companies belonging to Grupo Acerero del Norte
(GAN), which is the owner of AHMSA.

AHMSA has been protected for more than two-and-a-half years by a
suspension of payments order - a kind of bankruptcy protection -
and has accrued debts of more than US$1.85 billion.

Despite the Company's financial situation, it remains operative
and is one of Mexico's largest steel producers, as well as
operating coal and iron ore mines.

CONTACTS:  Alonso Ancira Elizondo, CEO, Vice Chairman, Pres.&CEO
           Jorge Ancira Elizondo, Chief Financial Officer
           Manuel Ancira Elizondo, Chief Operating Officer

           Their Address:
           Prolongacion B. Juarez s/n,
           Monclova , Coahuila 25770
           Mexico
           http://www.ahmsa.com
           Phone: +52 86 33 81 72
           Fax: +52 86 33 65 66


EMPRESAS ICA: 2001 Operating Loss Widens To US$97.9 Mln
-------------------------------------------------------
Empresas ICA, a Mexican engineering and construction company,
ended 2001 with an operating loss of US$97.9 million, compared to
the previous year's US$57 million. The loss during the period
included a US$113-million charge on account of writedowns and
"readjustments" in the fourth quarter, according to a Business
News Americas report.

Furthermore, 2001 sales were down by 16 percent to US$1.0
billion, compared to US$1.19 billion in the same period the
previous year.

ICA divested assets worth US$133 million and managed to reduce
total debts by MXN2.16 billion (US$236 million) or 28 percent in
the last quarter of 2001. Now, ICA's debts stand at US$598
million, US$198 million of which are short-term. The Company also
succeeded in rescheduling an additional MXN1 billion (US$109
million) in debts by between three and five years.

Despite a reduction in debts, ratings agency Standard & Poor's
(S&P) revised ICA's outlook to 'negative' from 'stable' due to
weaker-than-expected results for 2001 and an adverse business
environment. The rating agency also affirmed its 'single B'
corporate credit status for the Company.

ICA will continue to depend on the success of its asset sale
program to meet its financial obligations, S&P credit analyst
Jose Coballasi commented.

S&P noted that the environment in which the Company operates
remains an adverse one and is reflected in a backlog of less than
one year of work.

Very low levels of public spending on infrastructure works and
increased competition from foreign players have resulted in a
dearth of projects and the narrowing of ICA's operating margins,
and the decline of its cashflow generation, said the report.


EMPRESAS ICA: S&P Cuts Outlook Due To Disappointing 2001 Results
----------------------------------------------------------------
Standard & Poor's (S&P) reduced its outlook of Empresas ICA
Sociedad Controladora (ICA) from "B" to "mxBBB-," reports
Notimex.

The change in the outlook reflects the Company's dismal 2001
financial performance and the low level of performance by the
firm's management, despite the fact that the Company still leads
in the construction sector.

In its report, S&P said: "The expectations of greater activity in
the construction sector due to the arrival of President Vicente
Fox's government were tempered by the international economic
deceleration."


HYLSA: Launches Debt $300M Exchange Offer, Seeks Waivers
-----------------------------------------------------------
Hylsamex, S.A. de C.V. and its subsidiary Hylsa, S.A. de C.V.
(the "Company" or "Hylsa") announced Monday that Hylsa is
commencing an exchange offer relating to its $300,000,000
principal amount of outstanding 9 1/4% Notes due 2007 (the "2007
Notes").

In the exchange offer, Hylsa is offering to exchange $1,000 in
principal amount of new 10 1/2% Notes due 2010 for each $1,000
principal amount of 2007 Notes tendered. In conjunction with the
exchange offer, Hylsa is also soliciting consents to proposed
amendments to the indenture governing the 2007 Notes and a waiver
of past defaults under the indenture.

Each holder that tenders 2007 Notes on or prior to 5:00 p.m., New
York time on April 11, 2002 (the "Consent Date") will receive a
$10 consent and exchange payment for each $1,000 principal amount
of 2007 Notes tendered and not withdrawn before the Consent Date.
Holders may also consent without tendering their 2007 Notes.
Holders that submit valid consents on or prior to the Consent
Date, but do not tender their 2007 Notes, will receive a $5
consent payment for each $1,000 principal amount of 2007 Notes as
to which consent is validly given and not withdrawn prior to the
Consent Date. The exchange offer will be subject to certain
conditions including the receipt of 50% in aggregate principal
amount of the 2007 Notes, consents from a majority in aggregate
principal amount of the 2007 Notes to the proposed amendments and
waiver, and consummation by Hylsa of an overall restructuring of
its outstanding debt, as well as other customary conditions. The
exchange offer will expire at 11:59 p.m., New York time on April
19, 2002, unless extended.

The new notes offered in the exchange offer will not be
registered under the Securities Act of 1933, as amended, and will
only be offered in the United States to qualified institutional
buyers in a private transaction, and outside the United States in
offshore transactions.

For further information (including requests for offer
documentation by eligible offerees), contact the information
agent for the Company:

CONTACTS:  MacKenzie Partners, Inc., New York
           800/322-2885 or 212/929-5500 (collect)
           E-mail: proxy@mackenziepartners.com

           HYLSA SA DE CV
           Ave Munich 101,
           San Nicolas de los Garza,
           NL 66452
           Mexico
           Phone: +52 83 28 2828
           Fax: +52 83 28 2810-15
           Home Page: http://www.hylsa.com.mx
           Contact:
           Investor Relations:
           Margarita Guti,rrez
           Phone: (52) 81 8865 1224
           E-Mail: mgutierrez@hylsamex.com.mx

           Ricardo Sada
           Phone: (52) 81 8865 1201
           E-Mail: rsada@hylsamex.com.mx


HYLSA: 4Q01 Preliminary Earnings Flat to Negative
-------------------------------------------------
(The information hereby contains preliminary 4Q01 figures
presented in constant pesos (Ps) as of December 31, 2001, and in
metric tons. For convenience, some figures are translated into
dollars (US$) at the average exchange rate of each month.)

- Sales volume during 4Q01 amounted to 558,500 tons, 3% lower
than in the previous quarter and showed a 2% gain over 4Q00.

- Domestic volume in the quarter remained flat against 3Q01 and
2% above 4Q00. Volume growth was achieved in all product
categories, in particular flat value-added.

- Export shipments declined 28% from the previous quarter, but
grew 3% from 4Q00. Volume loss against 3Q01 consisted of lower
margin products, thus enhancing the export mix.

- Revenue per ton decreased 4%, from US$ 409 in 3Q01 to US$ 391
in 4Q01. Against the same quarter of 2000, when Hylsa recorded
US$ 455/ton, the decline represented 14%. Lower international
steel prices explain the difference against both comparable
quarters.

- In the fourth quarter, the price of Hylsa's main production
inputs returned to lower levels and is partially reflected in the
US$ 11 and US$ 20/ton reduction in variable costs versus 3Q01 and
4Q00, respectively.

- Cash generation, measured as EBITDA, decreased US$ 1 million
from 3Q01 before extraordinary income, reaching US$ 20 million.
Although cost savings were relevant during the quarter, they were
entirely offset by decreases in prices. The same situation was
observed against 4Q00, when Hylsa recorded an EBITDA of US$ 25
million.

- On December 11, Hylsa, S.A. de C.V. presented to its lenders a
proposal for the restructuring of its total outstanding bank
debt.

Hylsa is a division of Hylsamex, Mexico's second largest steel
producer, which in turn is a subsidiary of industrial
conglomerate Grupo Alfa.

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


PEMEX: Union Strongly Opposes Labor Cuts in Restructuring Plan
--------------------------------------------------------------
The National Oil Industry Workers Union (UNTCIP) has called on
the director of Petroleos Mexicanos (Pemex), Raul Munox, to halt
the Restructuring Program of Jobs for workers who do not belong
to unions, says Mexico City daily El Universal.

According to union leader David Cortes, the program contains
unjustified dismissals and compulsory retirements that could
affect 8,000 people this year.

The union has scheduled a protest for March 26 to show opposition
to the Company's intentions.

Meanwhile, reports say Pemex Projects of Long-term Productive
Infrastructure (Pidiregas) debts now surpass MXN800 billion
(US$88.5 billion) and its liabilities are harming the
government's future oil revenue.

Data from the Expenditure Department of the Treasury reveals that
large contracts the Company will sell for projects in the
Cantarell and Burgos fields and strategic gas program will cover
Pemex's financial commitments from 1998 to 2023, including
interest payments and debt contracted under Pidiregas.

These last debts have risen from MXN353.3 billion (US$ 39.1
billion) at the end of the Zedillo administration in 2000 to
MXN850.3 billion (US$94.1 billion) today.

The unprecedented debt level at Pemex now eclipses the value of
the Company, estimated at MXN565.3 billion (US$62.5 billion).


PEMEX: `02 Export Earnings Down 31% Through February
----------------------------------------------------
Mexico's state-run oil company Pemex announced that export
earnings for the first two months of the year dropped 31 percent
to US$1.448 billion, compared to the same period last year,
relates EFE.

On Tuesday, the Company disclosed that, for the period January-
February, it exported 1.58 million barrels a day for an average
price per barrel of US$17.29.

During the same period, 1.2 million barrels of Maya crude were
sold daily to its customers in the Americas, Europe and Asia,
earned US$1.08 billion. Pemex exported 52,000 barrels a day of
light Isthmus petroleum at a value of US$55 million and 275,000
barrels of Olmec crude for US$313 million.

According to Pemex, 1.3 million barrels daily were destined for
its customers in the Americas, 157,000 for its customers in
Europe and 31,000 for its Asian clients.


PEMEX: Senator Proposes Administrative Board Overhaul
-----------------------------------------------------
In an effort to change the structure of the Petroleos Mexicanos
(Pemex) Administrative Board, Senator Oscar Canton Zetina will
present a proposal that will eliminate the secrecy under which
representatives are named and committees formed, as in the case
of the Consultant Committee, created by decree last April 30.

Also under the proposal is a plan to include in the Pemex Board
representatives of the areas where hydrocarbons or oil complexes
exist in order to improve relations with Pemex.

The proposal calls for an increase in the board members from 11
to 15, some 8 of which would belong to the government to
guarantee that they always have a majority. The idea is to avoid
affecting the role of the State in the sector.

Should the Senator's proposal be adopted, the officials on the
Board would be representatives of the secretariats of Social
Development, Government, Labor, as well as the entities closely
related to Pemex.



===============
P A R A G U A Y
===============

CORPOSANA: Privatization Sale Documents Deadline Extended
---------------------------------------------------------
The deadline for the submission of background documents for the
privatization of water utility Corposana has been extended from
Monday to April 8, reports Business News Americas.

Paraguay's state reform agency SNRE extended the deadline at the
request of some of the 13 companies that purchased pre-
qualification guidelines who wanted more time.

A list of qualified companies has therefore also been pushed back
to April 12, while offers are still scheduled to be opened June
27.

The 13 companies are:

  1  - Anglian (UK)
  2  - International Water (UK)
  3  - Canal de Isabel II (Spain)
  4  - Aguas del Bilbao (Spain)
  5  - Proactiva Medio Ambiente (Vivendi-FCC) (France)
  6  - Ondeo (France)
  7  - A consortium made up of Uruguay's state water utility OSE
       and Spain's Aguas de Valencia
  8  - Compania Internacional de Aguas (Paraguay)
  9  - Consorcio EMSA-ECOMIPA (Paraguay)
  10 - Fluoder (Paraguay)
  11 - Consorcio EDB (Paraguay)
  12 - Acea (Italy)
  13 - A consortium made up of Corposana workers

Chicago-based firm, Baker & McKenzie, is the sale's legal
adviser. Spanish banking group, Santander Central Hispano, is the
financial consultant. Spanish investment bank, Nmas1, is managing
the sale process.

CONTACTS:  CORPOSANA LEGAL ADVISER:
           Baker & McKenzie
           Latin America Regional Council
           c/o Eduardo de Cerqueira Leite - Chairman
           Av. Dr. Chucri Zaidan 920, 8th floor
           Market Place Tower I
           04583-904 Sao Paulo, SP, Brazil
           Tel: (55-11) 3048-6800
           Fax: (55-11) 5506-3455
           Email: info-latinamerica@bakernet.com
           Marketing Manager: Ellen Van-Waveren

           Baker & McKenzie Headquarters:
           1 Prudential Plaza, 130 E. Randolph Dr., Ste. 2500
           Chicago, IL 60601
           Phone: 312-861-8800
           Fax: 312-861-2899
           Bakerinfo.com

           FINANCIAL CONSULTANT:
           Banco Santander Central Hispano
           Plaza de Canalejas,1
           28014 Madrid, Spain
           Phone: +34-91-558-10-31
           Fax: +34-91-552-66-70

           CORPOSANA:
           Emilio Botn-Sanz, Chairman
           Angel Corc>stegui Guraya, First Vice-Chairman and CEO
           Jose, Luis del Valle, EVP Finance



=================
V E N E Z U E L A
=================

BANCO PROVINCIAL: S&P Affirms Ratings; Off CreditWatch
------------------------------------------------------
The removal of the ratings on Banco Provincial S.A. from
CreditWatch and the original placement follow similar actions
taken on the sovereign rating of the Bolivarian Republic of
Venezuela, which was removed from CreditWatch because of the
adoption by the government of market-oriented policies-including
the flotation of the currency and tax and expenditure policies to
tighten the fiscal stance-to deal with this crisis. The
government's actions prompted Standard & Poor's affirmation of
the sovereign ratings, and a similar action on the bank's
ratings.

With a market share of 15.3 percent in assets and 16.5 percent in
deposits as of November 2001, Banco Provincial remains one of the
largest institutions in the Venezuelan banking system. With BBVA
as its major shareholder, Banco Provincial possesses the
infrastructure and market know-how to maintain its presence in
the market.

Standard & Poor's acknowledges Banco Provincial's important
market presence and improving financial profile. The negative
outlook, however, reflects the outlook on the sovereign credit
ratings of Venezuela as well as the increasingly difficult
operational environment, which is likely to prevent Banco
Provincial-and all banks in the system-from further developing
its business.

Analysts: David Olivares, Mexico City (52) 55-5279-2006; Ursula M
Wilhelm, Mexico City (52) 55-5279-2007



               ***********


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
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