TCRLA_Public/020409.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, April 9, 2002, Vol. 3, Issue 69

                           Headlines


A R G E N T I N A

CABLEVISION: Liberty Media Writes Off Investment, $195M Charge
METROGAS: Defaults on Payment, Fitch Drops Rating to `DD'
PEREZ COMPANC: Shareholders Make February Swap Terms Official
PEREZ COMPANC: Goldman Analyst Lowers Rating on Default Concern
TELECOM ARGENTINA: Creditor Negotiations Still Six Months Away


B E R M U D A

ANDERSEN: Offshore Insurer's Woes Aggravate Tenuous Condition
GLOBAL CROSSING: L.A. Grand Jury Indicts Ex-employee
GLOBAL CROSSING: Another Group Considers Biddding for Assets
MUTUAL RISK: Authorities Appoint Review Team To Monitor Ops
MUTUAL RISK: Expects Stock To Be Delisted From The NYSE
MUTUAL RISK: A.M. Best Downgrades Subsidiaries' Ratings
MUTUAL RISK: Regulators Step In, S&P Revises Subsidiaries To 'R'
MUTUAL RISK: PA Insurance Department's Take Control of Subs


B R A Z I L

CVC/OPPORTUNITY EQUITY: Anatel Asset Takeover Looms Ahead


M E X I C O

ALFA: Shares Up On Optimism Unit May Restructure Debts
BURLINGTON INDUSTRIES: Closing Mexican Unit If No Buyer Found
CYDSA, S.A.: Successful $40M Restructuring Extends Notes to 2009
GRUPO BITAL: ING May Rethink Position Following SCH Stake Buy
SAVIA: Favorable Science Journal Report Boosts Share Price
TRIBASA: Court Orders Suspension of Debt Payments
ZURICH AFORE: FCC Approves Sale To Principal Financial


     - - - - - - - - - -


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

CABLEVISION: Liberty Media Writes Off Investment, $195M Charge
--------------------------------------------------------------
Liberty Media Corp. is throwing in the towel on Cablevision. The
Colorado-based firm has officially written of its investment in
Argentina's largest cable television system, says a report by
Star-Telegram.

According to its annual report filed with the Securities and
Exchange Commission, Liberty Media took a charge of US$195
million to reflect a permanent decline in the value of its 50
percent interest in CableVision.

Including operating losses and foreign currency translation
losses, Liberty lost a total US$733 million last year on
CableVision.

That "reduced the carrying value of our investment to zero as of
Dec. 31, 2001," Liberty said in its disclosure.

Liberty's disclosures are indicative of the troubles of Dallas-
based Hicks, Muse, Tate & Furst in Latin America, where the
investment firm has seen several ventures hit the skids in recent
months. Hicks, Muse owns the other half of CableVision.

But Liberty's disclosures don't say how Hicks, Muse handled its
accounting for CableVision. The partners could disagree on asset
values.

In February, credit ratings agency Standard & Poor's Corp.
downgraded CableVision's ratings to D from CC/SD, after the
Company failed to make a principal maturity payment on its US$100
million floating rate notes due February 15, 2002.

At that time, the ratings agency revealed that CableVision has
about US$70 million in revolving short-term bank lines and has to
cover coupons for about US$6 million in March and about US$36
million in May. The Company has about US$865 million in debt,
including the FRNs and US$624 million of rated bonds issued under
a US$1.5-billion global medium-term note program.

S&P contends that CableVision has an aggressive financial profile
and a high financial burden, with increased refinancing risk.

CONTACT:  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

          LIBERTY MEDIA CORPORATION
          12300 Liberty Blvd.
          Englewood, CO 80112
          Phone: 720-875-5400
          Fax: 720-875-7469
          Home Page: http://www.libertymedia.com
          Contacts:
          John C. Malone, Chairman
          Robert R. Bennett, President, CEO, and Director
          Gary S. Howard, EVP, COO, and Director
          David J. A. Flowers, SVP and Treasurer

          HICKS, MUSE, TATE & FURST INCORPORATED
          200 Crescent Ct., Ste. 1600
          Dallas, TX 75201
          Phone: 214-740-7300
          Fax: 214-720-7888
          Home Page: none
          Contacts:
          Thomas O. Hicks, Chairman and Chief Executive Officer
          Charles W. Tate, President
          John R. Muse, Chief Operating Officer
          Darron Ash, Chief Financial Officer


METROGAS: Defaults on Payment, Fitch Drops Rating to `DD'
---------------------------------------------------------
Fitch Ratings has downgraded the foreign and local currency
ratings of MetroGas S.A. to 'DD' from 'C'.

The rating action follows MetroGas' default on an interest
payment under a US$100 million bond issuance on April 2, 2002.
While the cure period on this security has not yet expired, the
company stated on March 25, 2002, it intends not to pay any
principal or interest service on all of its financial
indebtedness. Thus, Fitch has downgraded to 'DD ' all of MetroGas
rated debt.

The company's decision follows the alteration of its concession
agreement by the Argentine Public Emergency Law N. 25.561, which
includes the suspension of tariff adjustments and the tariff's
pesofication. These changes, combined with the devaluation
impact, have materially affected the financial condition of
MetroGas, given the mismatch between its income in pesos and its
debt in hard currency, at an exchange rate of around Arg$3:US$1.
The company's maturities in 2002 are US$5 million on April 1,
2002 (interest), US$1.6 million on May 7 (interest) and US$94.4
million in September (principal).

At present MetroGas and other regulated market participants are
renegotiating concession contracts with the Argentine government
in the hope of recovering an all-too-illusive economic
equilibrium. But every indication thus far says the outcome of
negotiations is uncertain.

Fitch does not believe that the negotiations will result in the
immediate increase in tariffs necessary to compensate the
combined impact of devaluation and pesofication of tariffs. Upon
reaching an agreement with the government, MetroGas intends to
develop and propose a debt-restructuring plan. For this purpose
it has retained J.P. Morgan Securities Inc. and legal advisors
under Argentine and New York Law.

MetroGas is the largest of eight natural gas distribution
companies. MetroGas is 70%-owned by Gas Argentino S.A., 10%-owned
by employees and 20% is traded in the Buenos Aires Stock
Exchange. Gas Argentino S.A. is a consortium composed by British
Gas PLS (54.7%), and Repsol-YPF (45.3%).

CONTACT: FITCH RATINGS
         Ana Paula Ares
             or
         Anabella Colombo
         Phone: +54 11 4327-2444

         Buenos Aires
         Jason T. Todd
         Phone: 312/368-3217 (Chicago)
             or
         Alejandro Bertuol
         Phone: 212/908-0393 (New York)

         Media Relations:
         James Jockle
         Phone: 212/908-0547 (New York)

         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


PEREZ COMPANC: Shareholders Make February Swap Terms Official
-------------------------------------------------------------
Perez Companc S.A. (Buenos Aires: PC; NYSE: PC) 98.21%
shareholder of Pecom Energia S.A. (Buenos Aires: PECO) announced
the a definitive and official approval for an asset swap
transaction.

According to a press release issued April 4, 2002 by Pecom
EnergĦa, the company's Regular Shareholders' Meeting held on
April 3, 2002, approved the asset swap transaction consummated on
February 26, 2002 among Pecom EnergĦa, IRHE (Argentine Branch)
and Gentisur S.A. (a company wholly owned by IRHE), related
companies under the same controlling group.

Pursuant to the terms of the transaction and with economic
effects retroactive to January 1, 2002:

a) Pecom Energia S.A. sells IRHE (Argentine Branch) and Gentisur
S.A. its 50 % interest in Pecom Agra S.A. The value assigned by
the parties to such interest transferred is US$30 million,
accounting for a Ps. 57 million gain approximately that will be
recognized in the first quarter of 2002 fiscal year.

b) In turn, IRHE (Argentine Branch) and Gentisur S.A. transfer
Pecom Energia S.A.:

- 0.75 % interest in the Puesto Hernandez hydrocarbon UTE in the
amount of US$ 4.5 million.

- 7.5 % equity interest in Compania Inversora en Transmision
Electrica CITELEC S.A. ("Citelec"), controlling company of
Transener S.A., in the amount of US$ 15 million.

- 9.187 % equity interest in Hidroneuquen S.A., a company holding
59 % of Hidroelectrica Piedra del Aguila S.A.'s capital stock, in
the amount of US$ 5.5 million.

The balance, totaling US$ 5 million, will be settled by means of
an instrument having a maximum due date in October 2002 and
bearing interest at six-month LIBOR plus a 3 % annual spread.

These transactions enable Pecom Energia S.A. to optimize its
asset portfolio by means of the incorporation of investments that
strengthen its position in the energy sector and the divestiture
of non-core assets. Consequently, Pecom Energia S.A.'s holdings
in the Puesto Hernandez UTE and in Citelec increase to 38.45% and
49.99%, respectively. In addition, minority interest in
Hidroneuquen S.A. will grant rights in the Pichi Picun Leufu
Complex upstream dam.

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.

CONTACT:  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
          URL: http://www.pecom.com.ar


PEREZ COMPANC: Goldman Analyst Lowers Rating on Default Concern
---------------------------------------------------------------
Perez Companc SA, Latin America's largest independent energy
producer, saw its shares fall 2.1 percent to MXN2.33 after Brian
Singer, an analyst at Goldman, Sachs & Co. downgraded the Company
to "market underperform" from "market perform."

Investors are now getting apprehensive that Perez Companc may
default on its debts, Leonardo Chavia, a senior analyst at
consulting firm Delphos Investment, said earlier.

However, spokesman Mario Grandinetti said last month that the
Company would meet debt obligations this year. Grandinetti also
disclosed that Perez Companc is in talks with creditors to
refinance US$1.3 billion of debt due this year.

Perez Companc owes US$270 million in international bonds, US$392
million in bank loans and US$348 million in trade finance.
Another US$243 million is owed to domestic banks, analysts said.

Analysts believe that Perez Companc may have to sell assets in
order to finance these debts. The Company has about US$600
million in accounts outside Argentina to cover payments as the
government maintains restrictions on bank transfers and the peso
continues to weaken.


TELECOM ARGENTINA: Creditor Negotiations Still Six Months Away
--------------------------------------------------------------
Susana Malcorra, chief executive officer of Telecom Argentina-
Stet France Telecom SA, Argentina's second-largest phone company,
said she is at least six months away from starting to negotiate
with creditors. The Company recently defaulted on a US$3.2-
billion debt.

Analysts believe that the restructuring will likely strip
Telecom's two international shareholders -- France Telecom SA and
Telecom Italia SA -- of most of their ownership. Less than three
years ago, France Telecom and Telecom Italia spent US$530 million
to increase their stakes in Telecom Argentina.

Malcorra took over Telecom at a time when the firm had reported a
decade of quarterly profits and rising sales.

However, just recently, Telecom defaulted on US$3.2 billion of
debt, citing the peso's devaluation as the primary reason behind
the event.

Argentina's devaluation in January -- which dropped the peso's
value by more than 64 percent -- has cut gross domestic product
by a third to about US$100 billion and thrown Telecom's expansion
plans into disarray. The nation's monetary and currency
instability makes it almost impossible for executives such as
Malcorra to predict how they'll return to profitability, analysts
said.

Telecom invested US$9.3 billion over 11 years to build and
upgrade telephone services designed for consumers in a country
with per-capita income of more than US$7,000 a year. That income
is near US$3,000 after the devaluation. The government, which is
in default on US$95 billion of bonds and faces a fourth year of
recession, has added to the Company's problems by prohibiting
local rate increases for at least three months to stem inflation.

CONTACT:  TELECOM ARGENTINA STET - FRANCE TELECOM SA(TELECOM)
          Alicia Moreau de Justo 50, 10th Floor
          Capital Federal (1107) Repoblica Argentina
          Phone: +54 11 4968 4000
          Home Page: http://www.telecom.com.ar
          Contacts:
          Alberto J. Ricciardi, Chief Financial Officer
          Elvira Lazzati, Finance Director
          Pedro Insussarry, Investor Relations Manager
          Phone: (5411) 4968-3626/3627
          Fax: (5411) 4313-5842/3109
          Email: inversores@intersrv.telecom.com.ar



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

ANDERSEN: Offshore Insurer's Woes Aggravate Tenuous Condition
-------------------------------------------------------------
The embattled auditing firm Andersen may find it even harder to
save itself from a collapse, according to a Knight-Ridder
Business News article.

Reports are emerging that Andersen owns an insurance company that
is supposed to cover satellite firms, providing indemnity for
sloppy auditing. The insurer in question is known as Professional
Services Insurance Co. (PSI), based in the tax haven of Bermuda.

The Bermuda-based insurer's solvency has been put into question
after Andersen backtracked on an agreement last week to pay
US$217 million through PSI to settle claims relating to an
investment scam at the now-defunct Baptist Foundation of Arizona.

The state of Arizona has subpoenaed Andersen requesting it to
provide information about the firm's decision to pull out of the
settlement.

The Arizona Attorney General's subpoena, which was issued last
Tuesday, also demands complete financial data on PSI, which
according to news reports, was "technically insolvent" because of
a delinquent US$100 million premium payment.

Andersen has until Thursday evening to supply the information,
said Pati Urias, a spokeswoman for the state Attorney General's
office.


GLOBAL CROSSING: L.A. Grand Jury Indicts Ex-employee
----------------------------------------------------
A Los Angeles grand jury on Friday indicted a former employee of
Global Crossing Ltd. on nine counts of identity theft and
threatening executives at the bankrupt Bermuda-based fiber-optic-
network company, relates Dow Jones.

The indictment, which was filed in the U.S. District Court for
the Central District of California, names Steven William
Sutcliffe, who worked in the technical support department of
Global Crossing office in Beverly Hills until last year, when he
was fired, rehired, and then fired again in September.

The indictment charges Mr. Sutcliffe with four counts of making
interstate threats against Gary Winnick, chairman of Global
Crossing, and other employees. Mr. Sutcliffe allegedly posted
threats to injure Mr. Winnick and others, on a Web site that he
created, according to a copy of the indictment.

Five other charges against Mr. Sutcliffe relate to identity fraud
in which Social Security numbers for Mr. Winnick and upwards to
2,000 other current and former employees of Global Crossing were
posted on his Web site, "evilgx.com."

Thom Mrozek, a spokesman with the U.S. Attorney's Office in Los
Angeles, said Mr. Sutcliffe faces up to a maximum of 20 years in
prison if convicted on the charges of making the interstate
threats and up to a total of 75 years for the five identity fraud
charges. He also faces total fines of up to US$2.25 million, the
spokesman added.

Global Crossing provides telecommunications solutions over the
world's first integrated global IP-based network, which reaches
27 countries and more than 200 major cities around the globe.
Global Crossing serves many of the world's largest corporations,
providing a full range of managed data and voice products and
services. Global Crossing operates throughout the Americas and
Europe, and provides services in Asia through its subsidiary,
Asia Global Crossing.

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:
          Becky Yeamans
          +1 973-410-5857
          rebecca.yeamans@globalcrossing.com

          Cynthia Artin
          +1 973-410-8820
          cynthia.artin@globalcrossing.com

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


GLOBAL CROSSING: Another Group Considers Biddding for Assets
------------------------------------------------------------
Global Crossing, the once highflying telecommunications company
currently under Ch. 11 bankruptcy protection, is attracting more
potential bidders.

According to an article released by The New York Times, The
Infonet Services Corporation and Silver Lake Partners, a Silicon
Valley investment firm, are considering a joint bid with the
Gores Technology Group for Global Crossing.

According to people close to these companies, representatives
from Gores, Infonet and Silver Lake are scheduled to meet with
executives from Global Crossing at its headquarters in Madison,
N.J., at the start of this week.

While an official bid from the companies is not imminent, the
Gores group does appear to be further along in analyzing Global
Crossing's assets than others that have shown interest in
bidding, according to sources.

Gores has hired Skadden, Arps, Slate, Meagher & Flom, the big New
York law firm that specializes in acquisitions and bankruptcies,
as counsel for its study of a bid for Global Crossing.

In addition to Gores, which is run by the billionaire investor
Alec Gores, other financial firms like Platinum Equity, a Los
Angeles investment company run by Alec's brother Tom, and the
Texas Pacific Group, are also considering offers for Global
Crossing.

So far, the only other telecommunications companies that have
shown firm interest in Global Crossing are Hutchison Whampoa and
Singapore Technologies, which submitted a US$750 million bid
concurrently with Global Crossing's bankruptcy filing. The Asian
companies have repeatedly said that they would not sweeten their
offer.

The Hutchison group recently agreed to lower its breakup fee to
US$30 million from US$40 million if it makes its letter of intent
to buy Global Crossing into a formal agreement. It has until May
21 to formalize the offer.

The Asian companies also agreed to extend the bidding period to
180 days, making it more feasible for Global Crossing to attract
more suitors. Global Crossing could theoretically be auctioned by
July, according to the timetable agreed upon by creditors and the
Hutchison group.

Even after this agreement, though, concern has grown that Global
Crossing could fail to attract additional bidders and that its
assets could be liquidated. These worries increased last week
after Global Crossing was forced to scale back an agreement with
one of its most important customers, Swift, a worldwide provider
of messaging services to financial institutions.

It is not clear how the Hutchison group will respond to
strengthened interest in Global Crossing

CONTACT:  Skadden, Arps, Slate, Meagher & Flom
          New York
          Four Times Square
          New York, New York 10036
          Telephone: 212.735.3000
          Fax: 212.735.2000/1
          Contact: Irene A. Sullivan


MUTUAL RISK: Authorities Appoint Review Team To Monitor Ops
-----------------------------------------------------------
Bermuda-based Mutual Risk Management Ltd., which is currently
struggling amid mounting financial problems, is now under review
by local authorities, says a report by BestWire.

"The company has entered into an agreement with the Bermuda
Monetary Authority under which the authority has appointed a
review team to monitor the Company's business on an ongoing
basis," Mutual Risk Management said in its 10-K filing with the
U.S. Securities and Exchange Commission.

Shelby Weldon, assistant director of insurance for the Bermuda
Monetary Authority, said the authority is reviewing Mutual Risk
Management.

"We have taken steps to go in and review the operations of the
Company," he said. "That review has not yet been completed."

The Company's recent announcement that it had a net loss of
US$99.2 million, or US$2.38 a share, for 2001, compared with a
net loss in 2000 of US$5.6 million, or 13 cents a share. The
announcement was followed by a number of events:

-- The Company defaulted under the terms of its 9 3/8 percent
convertible exchangeable debentures, its bank credit facility and
its letter of credit facility.

-- On March 21, the Company completed the sale of its fund
administration business, principally Hemisphere Management Ltd.,
according to the 10-K. The proceeds of the sale, US$100 million
after taxes and expenses, are being used to repay debt. This
business had revenues of US$35.3 million and net income of US$7.9
million in 2001.

-- On March 25, the Company appointed its controller, Angus H.
Ayliffe, as chief financial officer, succeeding interim CFO James
Kelly;

-- A. Welford Tabor, Michael Esposito, Fiona Luck and K. Bruce
Connell, all designated as directors by holders of the 9 3/8
percent bonds, resigned. An additional director, William Galtney,
also resigned.

As of Dec. 31, 2001, the Company had US$180 million of bank loans
outstanding. In addition, there was US$156.9 million of
outstanding debentures, including US$142.5 million of outstanding
9 3/8 percent debentures.

CONTACT:  MUTUAL RISK MANAGEMENT LTD.
          Robert A. Mulderig
          Angus H. Ayliffe
          or
          Investor Relations:
          Fran Tucker
          800/772-0849 or 441/295-5688
          or
          Media Contact:
          Joel Weiden, 212/515-1970


MUTUAL RISK: Expects Stock To Be Delisted From The NYSE
-------------------------------------------------------
Mutual Risk Management, Ltd. announced Wednesday that it expects
its common stock will be de-listed from the New York Stock
Exchange.

The insurance firm said that it is working with the appropriate
parties to arrange for its shares to be quoted on the OTC
Bulletin Board. The Company said that it will notify shareholders
through a press release when it expects shares to begin trading
on the OTC Bulletin Board. The shares will trade under a new
ticker symbol "MLRM".

The Company reiterated that management continues to evaluate
strategic alternatives with its financial advisor, Greenhill &
Co., LLC.

The OTC Bulletin Board is a regulated quotation service that
displays real-time quotes, last-sale prices and volume
information in over-the-counter (OTC) equity securities. OTC
Bulletin Board securities are traded by a community of registered
market makers that enter quotes and trade reports.

Mutual Risk Management Ltd. provides risk management services to
clients in the United States, Canada and Europe seeking
alternatives to traditional commercial insurance for certain of
their risk exposures, as well as financial services to
individuals and other companies.


MUTUAL RISK: A.M. Best Downgrades Subsidiaries' Ratings
-------------------------------------------------------
A.M. Best Co. has downgraded the financial strength rating to E
(Under Regulatory Supervision) from B (Fair) for Legion Insurance
Company and Villanova Insurance Company, Pennsylvania.

The downgrade reflects the March 29, 2002, announcement by their
ultimate parent company, Mutual Risk Management, Ltd. (NASDAQ:
MM) that the Commonwealth Court of Pennsylvania has placed the
insurance companies into voluntary rehabilitation. The order of
rehabilitation is effective April 1, 2002.

A.M. Best has also downgraded the financial strength rating to E
(Under Regulatory Supervision) from B (Fair) for Legion Indemnity
Company, Illinois, to reflect its affiliation with companies
under regulatory supervision and the uncertainty regarding the
status of its reinsurance recoverables from these affiliates. The
three companies have operated under an intercompany reinsurance
pooling arrangement since 1996. Additionally, they have operated
as the fronting carriers for most of the Bermuda-based I.P.C.
Group rent-a-captive programs.

A.M. Best has also placed the B+ (Very Good) rating of I.P.C.
Group, Bermuda, under review with negative implications pending
discussions with management on the collateralized nature of its
loss reserves, strategic alternatives including finding another
quality fronting carrier and other related issues.

For more information, see A.M. Best's Web site at www.ambest.com.

CONTACT:  A.M. BEST CO.
          Public Relations:
          Jim Peavy, 908/439-2200, ext. 5644
          james.peavy@ambest.com
          or
          Rachelle Striegel, 908/439-2200, ext. 5378
          rachelle.striegel@ambest.com
          or
          Analyst:
          Ralph Cagnetta, 908/439-2200, ext. 5211
          ralph.cagnetta@ambest.com


MUTUAL RISK: Regulators Step In, S&P Revises Subsidiaries To 'R'
----------------------------------------------------------------
Standard & Poor's revised its financial strength ratings on
Legion Insurance Co. and Villanova Insurance Co. to 'R' because
of a Pennsylvania State Court decision effective April 1, 2002,
to place the companies under regulatory control.

Standard & Poor's also said it lowered its financial strength
rating on Legion Indemnity Co., the remaining pool member, to
triple-'C' because it expects the company's regulators to
consider a similar action.

"Legion Insurance and Villanova Insurance have $1.3 billion of
assets and continue to pay claims," said Standard & Poor's credit
analyst Karole Dill Barkley. "Pennsylvania has not decided
whether it will attempt to rehabilitate or liquidate the two
companies."

The ratings on Legion Indemnity Co. and Mutual Risk Management
Ltd., the Bermuda-based holding company, remain on CreditWatch
negative, where they were placed on Dec. 19, 2001.

CONTACT:  STANDARD & POOR'S
          Karole Dill Barkley, New York, 212/438-7167


MUTUAL RISK: PA Insurance Department's Take Control of Subs
-----------------------------------------------------------
Pennsylvania Insurance Commissioner M. Diane Koken announced
March 29 that the Commonwealth Court has granted her petitions
for Orders of Rehabilitation for Legion Insurance Company and
Villanova Insurance Company, both of Philadelphia. The companies
will be in rehabilitation effective April 1.

"We are taking these actions, with the consent of the companies,
in an attempt to halt further financial deterioration of the
insurance companies and to see that policyholders are protected,"
Commissioner Koken said.

"The Orders of Rehabilitation give the Insurance Department
statutory control of the companies, put numerous policyholder
safeguards in place, and preserve the remaining assets of the
companies."

Legion Insurance Company and Villanova Insurance Company are
headquartered in Philadelphia and are part of the Legion
Insurance Group. Legion Insurance Group, which has $1.3 billion
in admitted assets, is owned by Mutual Risk Management Ltd.
(MRM), a publicly held holding company organized in Bermuda.

The Legion Group transacts insurance business in all 50 states.
The group writes mainly commercial insurance products, including
workers' compensation, medical malpractice, general liability,
group accident and health, and property coverages. A large
portion of the group's business involves structuring self-insured
programs for mid-sized corporations and associations.

"The first order of business is to undertake a thorough,
independent financial analysis of Legion Insurance Group,"
Commissioner Koken said. "This will determine if financial
rehabilitation is feasible."

CONTACT:  Pennsylvania Insurance Department
          Melissa Fox or Rosanne Placey
          Tel. +1-717-787-3289



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

CVC/OPPORTUNITY EQUITY: Anatel Asset Takeover Looms Ahead
---------------------------------------------------------
The dissolution of CVC/Opportunity Equity Partners could mean the
Brazilian telecom regulator Anatel will take over the telecom
operators in which CVC/Opportunity has an equity stake, reports
AFX.

Anatel has formally asked Opportunity to provide information on a
UK court decision against the head of the Opportunity investment
bank, Daniel Dantas, and Citigroup Inc.

On March 21, the House of Lords' Privy Council, allowed Luiz
Roberto Demarco, a former business partner of Dantas, to request
the dissolution of CVC/Opportunity Equity Partners Ltd, which is
based in the Cayman Islands.

Opportunity holds stakes in Brasil Telecom -- along with Telecom
Italia SpA --, in Telemig Celular and in Amazonia Celular.

According to an industry expert, Anatel's options include
depriving the new owner of the stakes formerly held by
Opportunity of its management rights, assuming direct control of
the telecom ventures or revoking the concession granted to the
operators.

Demarco has 3.5 percent ownership of CVC/Opportunity Equity
Partners. He has been trying to sell his stakes for three years
but has failed to reach an agreement with Opportunity.

CVC/Opportunity is a company organized with the specific purpose
of investing in private equity opportunities in Brazil.
CVC/Opportunity consists of an Offshore Investment Fund managed
by an Offshore Management Company and an Onshore Brazilian based
Investment Fund and managed by an Onshore Management Company.

CONTACT:  TELECOM ITALIA
          Registered Office:
          Piazza degli Affari n. 2
          20123 Milano

          General Management and Secondary Office:
          Corso d'Italia 41
          00198 Roma
          Phone: 0636881
          Fax: 0636882965
          Home Page: http://www.telecomitalia.it
          Contacts:
          Investor Relations:
          Phone: +39 06 36882381
                 +39 06 36883378
                 +39 06 36882119

          TELEMIG CELULAR PARTICIPA?OES
          SCN Quadra 3, Bloco A, Sobreloja, Asa Norte
          70713-000 Brasilia, D.F., Brazil
          Phone: +55-61-429-5600
          Fax: +55-61-429-5626
          Contacts:
          Gunnar Birger Vinof Vikberg, Chairman and CEO,
          Rene Pantoine, COO
          Joao Cox Neto, CFO and Head of Investor Relations


          BRASIL TELECOM
          Sia Sul, Asp, Lote D, Bloco B
          71215-000 BrasĦlia, D.F., Brazil
          Phone: +55-61-415-1414
          Fax: +55-61-415-1315
          Contacts:
          Luis Octavio Carvalho da Motta Veiga, Chairman
          Henrique Sutton de Sousa Neves, CEO/Investor Relations
                                          Officer
          Paulo Pedrao Rio Branco, CFO



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

ALFA: Shares Up On Optimism Unit May Restructure Debts
------------------------------------------------------
Shares of steel and petrochemical producer Alfa rose 5.4 percent
to MXN17.20 Friday after climbing 6.7 percent the previous day,
says Bloomberg.

Investors are betting Hylsamex, Alfa's steel unit, will be able
to restructure its liabilities with banks and bondholders,
lifting a burden off the parent company.

Hylsamex began a tender offer on March 25 to swap a 9 1/4 percent
bond due 2007 into a 10 1/2 percent bond maturing in 2010 to
reduce its debt-servicing burden. The offer expires April 11.

To see Hylsamex's financial statement:
http://bankrupt.com/misc/Hylsamex.doc

CONTACT:  HYLSAMEX
          Investor Relations
          Margarita Gutierrez
          E-Mail: mgutierrez@hylsamex.com.mx

          Ricardo Sada
          E-Mail: rsada@hylsamex.com.mx
          Phone: (52) 81 8865 1224
                 (52) 81 8865 1201
          Munich 101,
          San Nicolas de los Garza N.L., 66452
          Mexico


BURLINGTON INDUSTRIES: Closing Mexican Unit If No Buyer Found
-------------------------------------------------------------
Delores Sides, a Burlington Industries spokeswoman, announced
that the Greensboro, N.C.-based company could close down its
denim garment factory in Mexico should it fail to find a buyer
over the next six months.

The announcement came after the Company revealed it laid off more
than half of the 816 workers at its Mississippi textile plant in
preparation for shutting down by month's end.

Burlington Industries, one of the largest textile companies in
the U.S., filed for Chapter 11 bankruptcy protection Dec. 6 in
the U.S. Bankruptcy Court in Wilmington, Del., listing assets of
$1.2 billion and liabilities of $1.1 billion as of Sept. 29,
2001.

The company attributed its problems to foreign imports and a
slowdown in consumer spending.

To see financial statements:
http://bankrupt.com/misc/Burlington_Industries.txt

CONTACT:  BURLINGTON INDUSTRIES
          Ross Haymes, Manager of Investor Relations
          Burlington Industries, Inc.
          3330 W. Friendly Ave.
          Greensboro, NC 27410-4800
          Phone: 336-379-2000
          Fax: 336-332-0815

AUDITOR: Ernst & Young LLP
         21800 Oxnard Street, Suite 500
         Woodland Hills, CA 91367
         USA
         Telephone:  818-703-4848
         www.ey.com

DEBTORS' LEAD COUNSEL: David G. Heiman, Esq.
                       Richard M. Cieri, Esq.
                       Carl E. Black, Esq.
                       JONES, DAY, REAVIS & POGUE
                       North Point
                       901 Lakeside Avenue
                       Cleveland, Ohio 44114
                       Telephone (216) 586-3939
                       Fax: (216) 579-0212

                              and

                       Brett J. Berlin, Esq.
                       JONES, DAY, REAVIS & POGUE
                       3500 SunTrust Plaza
                       303 Peachtree Street, N.E.
                       Atlanta, Georgia 30308
                       Telephone (404) 521-3939
                       Fax (404) 581-8330

                              and

                       Michelle Morgan Harner, Esq.
                       JONES, DAY, REAVIS & POGUE
                       77 West Wacker, Suite 3500
                       Chicago, Illinois 60601
                       Telephone (312) 782-3939
                       Fax (312) 782-8585

DEBTORS' LOCAL COUNSEL: Daniel J. DeFranceschi, Esq.
                        Paul N. Heath, Esq.
                        RICHARDS, LAYTON & FINGER, P.A.
                        One Rodney Square
                        P.O. Box 551
                        Wilmington, Delaware 19899
                        Telephone (302) 658-6541
                        Fax (302) 651-7701


CYDSA, S.A.: Successful $40M Restructuring Extends Notes to 2009
----------------------------------------------------------------
Cydsa, S.A. de C.V. announced Friday the passing of the
extraordinary resolution by the requisite aggregate principal
amount of notes held by eligible holders of its 9.375% notes due
2002 at its meeting of noteholders held at 3:00 p.m., London
time, today, April 5, 2002. Shortly following the meeting, Cydsa
entered into a supplemental trust deed adopting the amendments
provided for in the extraordinary resolution, including the
extension of the maturity of its notes from June 25, 2002 to June
25, 2009, as described in the Proxy Solicitation Statement and
Offer to Purchase, dated January 25, 2002, as supplemented by a
Supplement to Proxy Solicitation Statement and Offer to Purchase,
dated March 19, 2002 (as supplemented, the "Statement").

Cydsa also announced that it has accepted for purchase and
payment all notes validly tendered (and not withdrawn) prior to
12:00 Noon, New York City time, on Friday, April 5, 2002 (the
"Offer Expiration Date") pursuant to its offer to purchase notes
for cash. In that connection, Cydsa also announced that it has
amended the tender offer to increase the principal amount of
notes it is offering to purchase from U.S.$40,000,000 to
U.S.$41,003,000. As of the Offer Expiration Date, based on
information provided by the depositary for the tender offer,
approximately U.S.$41,003,000 in aggregate principal amount of
notes were validly tendered (and not withdrawn) to the
depositary. The payment date for the notes accepted for payment
in the tender offer is expected to be on or about Wednesday,
April 10, 2002. Pursuant to the tender offer, noteholders whose
notes are purchased pursuant to the tender offer will receive
U.S.$520 per U.S.$1,000 principal amount of notes. In addition,
noteholders will receive accrued and unpaid interest up to, but
not including, the date of purchase. All notes purchased by Cydsa
pursuant to the tender offer will be cancelled.

In addition, eligible holders of record who delivered (and did
not revoke) a duly executed proxy in favor of the extraordinary
resolution as of 5:00 p.m., Wednesday, April 3, 2002 will receive
a proxy fee of U.S.$15 per U.S.$1,000 principal amount of notes
to which the proxy pertains. The payment date for the proxy fee
is also expected to be on or about Wednesday, April 10, 2002.

Cydsa's proxy solicitation and offer to purchase for cash was
made upon the terms and conditions set forth in 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 of eligibility
("eligible holders") were authorized to receive or review the
Statement or to participate in the proxy solicitation and the
tender offer made thereby.

To see latest balance sheet:  http://bankrupt.com/misc/CYDSA.pdf

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


GRUPO BITAL: ING May Rethink Position Following SCH Stake Buy
-------------------------------------------------------------
Santander Central Hispano SA's (SCH) purchase of an additional
stake in Grupo Financiero Bital SA may force Amsterdam-based ING
Groep to rethink its investment in the Mexican bank.

The recent transaction is pushing the Dutch group toward becoming
a minority shareholder with less voting power, said Standard and
Poor's analyst Ursula Wilheim.

"This must be giving ING a major headache," Wilheim said,
indicating that the move could be a bid on Santander's part to
increase its stake in the Mexican banking sector, or to improve
its investment portfolio.

ING paid US$200 million last month to acquire its stake in Bital
as part of a capital increase aimed at raising cash needed to
acquire the failed Banco del Atlantico SA. ING also maintains an
insurance joint venture with Bital.

On Wednesday, Portugal's Banco Comercial Portugues SA (BPC) said
it had sold its 8.3 percent stake in Bital, together with 66.7
million convertible bonds, to SCH for US$85 million.

The convertible bonds translate into an additional 5 percent
stake in Bital, raising SCH's total stake to 13 percent.

SCH's position has voting rights for 15 percent of Bital's share
capital. SCH already held a 13.3-percent stake in Bital with 15
percent voting rights.

So now, the Spanish banking giant effectively controls 30 percent
of the voting rights for Bital, Mexico's fourth-largest financial
institution.

CONTACT:  GRUPO FINANCIERO BITAL
          Paseo De La Reforma
          No. 243, Cuauhtemoc,
          06500, Mexico ,D.F.
          Phone: 57.21.52.86
          Fax:  57.21.57.83
          Home Page: www.bital.com.mx
          Contact:
          Investor Relations
          Act. Ricardo Garza Galindo Salazar
          Phone: 57.21.26.40
          Fax:57.21.26.26
          E-mail: ricaggs@bital.com.mx

          BANCO COMERCIAL PORTUGUES
          Miguel Duarte
          +35-121-321-1081;

          CITIGATE DEWE ROGERSON FOR (BPC)
          Patrick Hughes or Paul Hebert
          +1 212-688-6840

          SANTANDER CENTRAL HISPANO S.A.
          Plaza de Canalejas, 1
          28014 Madrid, Spain
          Phone: +34-91-558-10-31
          Fax: +34-91-552-66-70
          Home Page: http://www.bsch.es
          Contacts:
          Emilio Botin-Sanz, Chairman
          Ana Patricia Botin, Chairman, Banesto
          Alfredo Saenz, CEO, Chairman BSN, Banif,
                              Deputy Chairman SCH Investment
          Jose Luis del Valle, EVP Finance

          ING GROEP N.V.
          Strawinskylaan 2631
          1077 ZZ Amsterdam,
          The Netherlands
          Phone: +31-20-541-54-11
          Fax: +31-20-541-54-44
          Home Page: http://www.ing.com
          Contacts:
          Ewald Kist, Chairman
          Cees Maas, Chief Financial Officer


SAVIA: Favorable Science Journal Report Boosts Share Price
----------------------------------------------------------
Shares of the embattled conglomerate Savia SA, the world's
largest vegetable-seed producer, climbed 8.2 percent to MXN3.56
Friday following a 9.3 percent gain on the previous day, reports
Bloomberg.

The stock got a shot in the arm from an article in the science
journal Nature that disputed an early report in the same journal
that said genetically modified corn was growing in southern
Mexico even though the Mexican government has banned it.

Seminis, Savia's seed unit, stock values have plunged to US$1.26
a share now from US$15 in June 29, 1999 when the company sold
shares to the public for the first time because of concerns over
resistance to genetically engineered seeds.

Savia, through its subsidiaries Seminis and Bionova, produces and
markets seeds for fruits and vegetables. The Company is also a
principal distributor of fresh fruits and vegetables in North
America. Its operations extend to 120 countries and employ nearly
8,000. Annual sales are approximately US$800 million (U.S.)

To see financial statements: http://bankrupt.com/misc/Savia.txt

CONTACTS:  SAVIA S.A. DE C.V.
           Investor Relations:
           Francisco Garza
           Tel. +52-818-173-5500
           Fax. +52-818-173-5508
           Email: fjgarza@savia.com.mx

           Media Relations:
           Francisco del Cueto
           Tel. +52-555-662-3198
           Fax. +52-555-662-8544
           Email: delcueto@mail.internet.com.mx


TRIBASA: Court Orders Suspension of Debt Payments
-------------------------------------------------
Mexican construction firm Tribasa informed the Mexican Stock
Exchange that on March 26, a judge ordered it "to suspend payment
on obligations contracted prior to the date of notification of
the ruling, except in relation to the payments, which are
indispensable for ordinary operation," says EFE.

Moreover, the judge ordered the firm to continue meeting its
payroll and to pay taxes and social security contributions after
previously notifying the court.

The judge's orders came after Banco del Atlantico bank, Bank of
America and BBVA Bancomer petitioned the court to call a
creditors meeting, and Tribasa was granted 185 days in which to
consolidate its debts and negotiate settlements with its
creditors.

Failure to meet obligations by the end of this period will result
in bankruptcy proceedings for Tribasa.

Tribasa is a civil engineering firm specializing in building
large-scale public works and industrial plants.

The Company was one of the beneficiaries of the government's so-
called "highway bailout" plan, which was aimed at saving
companies that had built and operated toll roads that turned out
to be unprofitable.

At the end of February, Tribasa's principal subsidiary,
Triturados Basalticos y Derivados, was declared bankrupt with
liabilities totaling MXN6.4 billion (US$709.0 million).

CONTACT:  GRUPO TRIBASA, S.A. DE C.V.
          Bosque de Cidros No. 173,
          Bosques de las Lomas
          05120 Mexico, D.F., Mexico
          Phone: +52-55-5229-7400
          Fax: +52-55-5229-7430
          E-mail: tribasa@tribasa.com.mx
          Home Page: http://www.tribasa.com.mx
          Contacts:
          David Sandoval, Chairman and President
          Salvador Linares, Chief Executive Officer
          Adriana De Penaloza, Vice Chairman
          Fernando Ochoa, Corp. Director of Construction
          Gustavo Carbajal, Corp. Director of Admin. and Control


ZURICH AFORE: FCC Approves Sale To Principal Financial
------------------------------------------------------
Principal Financial Group's purchase of Zurich Afore S.A. de
C.V., Zurich Financial Services Group's private pension operation
in Mexico, has already been approved by the Federal Competition
Commission and the deal should close in June, according to a
report by Mexico City daily el Economista.

Credit Suisse First Boston advised the Principal Financial Group
on the transaction. Zurich Afore will merge with the Mexican
pension fund business of The Principal(R), Principal Afore S.A.
de C.V.

Zurich Afore currently serves more than 800,000 private pension
customers, while Principal Afore's business serves nearly 1.4
million customers.

Embattled Zurich Financial Services has a three-year-in-the-
making project that's sitting idly in a Zurich Financial data
center.

The ambitious project, which is part of the US$1-billion dream of
CEO Rolf Hueppi to turn the company into an "e-business
powerhouse," has already gobbled up US$250 million and is now
deemed a "white elephant" with little or no use at all. This
latest transaction brings to two the number of failed projects
included in Mr. Hueppi's so-called dream.

The company declined to say whether it would write down the
exchange project, reiterating its December forecast for the group
that it would write down investments totaling US$900 million in
2001, including US$100 million in private equity investments.

Zurich reported a US$387 million loss for 2001. Hueppi said
earlier he'd step down as CEO by mid-year, though he will remain
on as chairman.

CONTACT:  The Principal Financial Group, Des Moines
          Media Contacts:
          Sheila Streicher, 515/247-6639
          streicher.sheila@principal.com
          or
          Terri Shell, 515/283-8858
          shell.terri@principal.com
          or
          Investor Relations:
          John Effrein, 515/235-9500
          investor-relations@principal.com

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



               ***********


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
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
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or balance thereof are $25 each.  For subscription information,
contact Christopher Beard at 240/629-3300.


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